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HomeMy WebLinkAboutWater Board - Minutes - 09/15/1995WATER BOARD MINUTES September 15, 1995 3:00 - 5:31 P.M. Water and Wastewater Utility Conference Room 700 Wood Street NOTE: The minutes are abbreviated this month due to technical difficulties with the taping. COUNCIL/WATER BOARD LIAISON Charles Wanner MEMBERS PRESENT Paul Clopper, President, John Bartholow, Vice President, Ray Herrmann, Tom Brown, Howard Goldman, Dave Frick, Terry Podmore, Alison Adams, Tom Sanders, Robert Ward STAFF Mike Smith, Wendy Williams, Gale McGaha Miller, Dennis Bode, Curt Miller, Scott Harder, Molly Nortier GUESTS John Fishbach, New City Manager Sue Ellen Charlton, League of Women Voters Observer George Reed, Citizen Observer MEMBERS ABSENT David Lauer (excused) President Paul Clopper opened the meeting. The following items were discussed: WELCOME TO NEW BOARD MEMBER President Clopper welcomed Tom Sanders back to the Board. He was unable to attend last month. Dr. Sanders had been a member of the Board for 13 years. He resigned because of the three -term limit for Water Board members. After a two-year absence he decided to re -apply for the Board because he feels that it is important for the Board to have 'continuity, and that there should be members who have a sense of the history of the Board." Water Board Minutes September 15, 1995 Page 2 MINUTES Ray Herrmann moved that the minutes of July 21, 1995 be approved as distributed. After a second from Alison Adams, the motion was approved unanimously. UPDATE: NORTHERN COLORADO WATER CONSERVANCY DISTRICT No report DISCUSSION - LETTER TO NCWCD REGARDING LIMITATIONS OF OWNERSHIP OF CBT WATER BY MUNICIPALITIES In February 1995, the Northern Colorado Water Conservancy District adopted interim guidelines on limitations of ownership of Colorado Big Thompson water by municipalities. Upon review of these guidelines, staff and Water Board members raised a number of questions and concerns. Staff sent a letter, reviewed and approved by the Water Board, to Eric Wilkinson, General Manager of the District, to inform him of those questions and comments so he and the District Board of Directors could consider them prior to the finalization of their policies. The following questions were included in the letter to Mr. Wilkinson: 1. What is the purpose of the CBT ownership limitations? 2. What are the general effects of limitations? 3. What is the effect of limitations on Fort Collins? The conclusion in the letter related that establishing permanent guidelines on ownership of CBT water is an important issue for most allottees of the District. 'Because of this, it seems prudent to have additional opportunities to provide input to the NCWCD Board prior to adopting rules, regulations and policies regarding such limitations. Of particular importance is determining the purpose of the limitations so that allotees can focus on the appropriate guidelines needed to achieve the intended purpose." The letter requested a written response from Mr. Wilkinson to the questions that were raised. It also suggested that it would be valuable for Mr. Wilkinson and possibly a representative of the District Board to meet with the Fort Collins Water Board regarding these questions and the proposed guidelines in general. Water Board Minutes September 15, 1995 Page 3 Mr. Wilkinson sent a detailed response to staffs letter and he indicated that he would welcome the opportunity to meet with the Water Board and staff. His letter was included in the Board's September packets, and was discussed at the meeting. Water Board and staff Discussion Included the Following Items: 1. The notice regarding formulation of the new policy was not very clear. There were no drafts sent out ahead of time and meeting notices lacked details. 2. The letter from NCWCD states that the purpose of the Interim Guidelines is "to assure a more equitable distribution of project water ownership, etc." Water Board members wondered whether there might be another purpose not stated. Howard Goldman commented that he didn't think the NCWCD letter answered the questions that were asked. Robert Ward stated that he thought another purpose may be to protect base water supplies from being sold to entities outside the area. He cited the middle of page 5 of the letter as his reference. Dennis Bode mentioned that he thought paragraph 2.b. of the guidelines was too restrictive. Other water obligations need to be included as part of the average annual demand, such as raw water used for parks or greenbelts, and other raw water obligations. He also related that the two methods of calculating the CBT limitations result in a large difference for Fort Collins. He estimated that when using the "average yield" methods, Fort Collins is about 6,000 units under the cap; however, using the "firm yield" method, Fort Collins is about 9,000 units over the cap. Alison Adams suggested that NCWCD needs to know how much difference there is between the two methods and how it affects Fort Collins. Dennis Bode commented that staff had given some thought to the idea that entities should be allowed to own a certain percentage of CBT water before being subject to the yield criteria. Currently, only about 20% of Fort Collins supply is made up of CBT units. "It does not seem equitable that Fort Collins never be allowed to buy additional CBT water because its supply is just over the 1 in 50 yield criteria, but some entity that is just under the 1 in 50 criteria can buy all CBT water for its new supply," he pointed out. The Water Board was informed that Eric Wilkinson, and possibly some District Board members are scheduled to come to the Water Board meeting in November. It was suggested that the Water Supply Committee meet again to discuss the issue and prepare for the meeting in November. PROPOSED 1996 W&WW UTILITY BUDGET PRESENTATION Summaries of the recommended 1996 Water Fund and Wastewater Fund Budgets were sent to Board members in their packets. The Water Board's Legislative and Finance Committee, headed by Howard Water Board Minutes September 15, 1995 Page 4 Goldman, met with staff prior to the Board meeting for a more in depth look at the budget and proposed rate adjustments. With the use of overheads, Mike Smith and Wendy Williams provided the Board with a detailed presentation on the proposed budget. The recommended 1996 budget includes revenue projections based on an overall water rate increase of 4% and an overall wastewater rate increase of 3%. The water rate increase is due to inflation, revenue loss associated with the metering program, and capital costs associated with the Water Master Plan. The wastewater increase is due to inflation. The recommended budget includes a 5.10% increase in the Water Fund, as detailed below: * Operation & Maintenance 3.16% * Replacement (Minor Capital) 13.51% * Payments and Transfers 4.77% * Capital Projects 7.90% The Wastewater Fund will be decreasing by 8.21% due to the reduction in capital projects following the completion of Phase I of the Wastewater Master Plan. The specifics follow: * Operations & Maintenance 2.46% * Replacement (Minor Capital) 10.31% * Payments and Transfers-17.85% * Capital Projects-56.48% During the discussion, several members expressed an interest in reviewing the policies on reserves and Net Income. These policies are important factors in planning the financial operations of the Water & Wastewater Utility. Staff will be reviewing and making recommendations regarding these policies. For example, staff believes that the New Income Policy needs to be clarified as to what should be included in the "full cost of operating and maintaining the utility plant." Terry Podmore was somewhat confused by the "contingency" issue listed under Payments and Transfers. He asked that staff clarify that in future budgets. There were also questions about the operating reserve. It was suggested that staff advise City Council to look at operating reserves; currently 2% is set aside for reserves. One Board member proposed that staff include an historical aspect as part of the budget presentation; in other words, "what is our track record like?" Tom Sanders was concerned that the budget does not specifically state where the money is for purchasing water. It is currently in the capital reserve. Water Board Minutes September 15, 1995 Page 5 Overall, the presentation was informative and the proposed budget generated some very interesting discussion. Ray Herrmann moved, and Terry Podmore seconded the motion, to recommend approval to the City Council of the 1996 Water & Wastewater Utility budget and associated rate adjustments. The motion also included language regarding reviewing the Net Income Policy. The Board voted unanimously in favor of the motion. STAFF REPORTS Treated Water Production Summary Dennis Bode reported that water use for August was 4,305 acre feet or 14% above the projected use. This was due primarily to only .37 inches of precipitation compared to an average of 1.41 inches. For the year, water use is at 86% of average. Financial Status Report The following figures represent the financial status of the Water and Wastewater Utility through the end of August, 1995: Water Operating Expenses $ 823,447 Wastewater Operating Expenses $ 677,118 Water Operating Revenue $1,458,948 Wastewater Operating Revenue $ 839,613 Water PIFs $ 260.672 Wastewater PIFs $ 206,227 Total Water Revenue $1,920,900 Total Wastewater Revenue $1,127,868 Update on Water Treatment Master Plan Mike Smith announced that C112M Hill has been selected as the engineering firm for the Water Treatment Facility work that was stipulated in the Water Treatment Master Plan. The firm was selected because they seem very committed and customer service oriented. Their first task will be to work with the Water Treatment staff to design and construct improvements at the plant. The improvements, a new backwash recovery system, chlorine scrubber, installation of new piping and media in Filters #21423, and a second Horsetooth raw water dissipation valve, are scheduled to begin in early 1996. In addition, C112M Hill and Utility staff Aill finalize the schedule for other Master Plan projects. "We are looking forward to working with them," Mr. Smith concluded. Water Board Minutes September 15, 1995 Page 6 Report on Tour of Boxelder Lagoon System, Update on Boxelder Site Application and Update on Regional Wastewater Planning Study Gale McGaha Miller reported on all three items. She began by saying that the Boxelder Sanitation District hosted a very nice tour. "They had done quite a lot of work improving the grounds," she pointed out. They are working with Maurie Albertson at CSU to try and optimize lagoon performance. Visitors were able to view the piece of land that will be bought from the City. She concluded that "after a nice box lunch, the District showed a promotional video that was produced by CSU." Ms. McGaha Miller stated that the site application for Boxelder was approved by the Colorado Department of Public Health and the Environment. The approval letter listed preliminary effluent limitations for metals and ammonia that were more stringent than current permit limits. The City will review the new permit draft and make comments as appropriate. A Board member asked her to prepare a comparison of Boxelder and City permit limits, which she agreed to do. The Regional 201 Facilities Plan: Representatives from the participating entities met four times. They have developed a draft "Memorandum of Understanding" and "Request for Proposals." "These are nearly complete and should be ready for the Water Board's consideration by the next meeting," she said. The study will be funded by an EPA/State grant for $50,000 plus money from the City of up to $100,000. The RFP calls for a consultant to: Review existing planning documents Review and update population projections Review water quality data and river modeling Evaluate existing facilities, wastewater collection alternatives, and transfer and treatment alternatives Evaluate management alternatives Recommend optimal alternatives Facilitate public involvement COMMITTEE REPORTS Confirmation of Assignments to Standing Committees as Follows: Eneineerine: Alison Adams Tom Sanders Paul Clopper Water Board Minutes September 15, 1995 Page 7 Conservation and Public Education Terry Podmore, Chairperson Ray Herrmann David Lauer Legislative and Finance Howard Goldman, Chairperson Alison Adams John Bartholow Tom Sanders Robert Ward Water Supply: Tom Brown, Chairperson John Bartholow David Frick Robert Ward Note: The president of the Water Board is an ex officio member of all the Standing Committees. Engineering No report Conservation and Public Education Chair Terry Podmore reported that a committee meeting had been set for today prior to the Board meeting, but due to a conflict in his schedule, he rescheduled the meeting for October 20 at 2:00 p.m. (prior to the Board meeting). At the meeting, staff will update the Committee on progress with the Water Conservation Program. Legislative and Finance The Committee, as stated earlier, met prior to the Board meeting to review the 1996 draft W&WW Budget. They recommended acceptance of the Budget to the Board as was mentioned in the budget presentation. Water Supply The Water Supply Committee will schedule a meeting prior to the October Board meeting to prepare for the meeting with Eric Wilkinson in November to discuss the CBT cap. REGIONAL WATER SUPPLY STRATEGY UPDATE No report Water Board Minutes September 15, 1995 Page 8 Regional Wastewater Service Issues Update This report was given under staff reports. OTHER BUSINESS David Lauer's Conflict with Water Board Meeting Time New Board member David Lauer informed Paul Clopper and staff that due to new responsibilities as Youth Programs Coordinator at the Family Center of Fort Collins, he would be unable to attend Board meetings at 3:00 on Friday. He asked if the Board would consider meeting at another time. After some discussion, the Board concluded that the large number of Board members, Utility staff and others who routinely attend these meetings would not allow this to be a viable option. They recognize and appreciate the importance of Mr. Lauer's work with the Family Center and they also value his continued involvement in Board activities. They left it up to Mr. Lauer to explore alternate arrangements. Mr. Clopper will inform Mr. Lauer of the Board's decision. Arrangements for Touring Utility Facilities Molly Nortier would like to arrange for new Board members to tour the Water and Wastewater Facilities. She mentioned that personnel at both facilities are willing to give individual tours if necessary. It was decided that a tour of the wastewater facility should be scheduled for a lunch hour in order to invite Boxelder Sanitation Board members and staff to join in the tour. It would be an opportunity for them to learn about our plant as City Board members and staff were educated about their lagoon system in August. Paul Clopper and Ms. Nortier will select possible dates. ADJOURNMENT Since there was not further business, the meeting was adjourned at 5:35 P.M. Water Board Secretary