HomeMy WebLinkAboutWater Board - Minutes - 04/09/1976WATER BOARD
Regular Meeting
April 9, 1976 - 3:00 P.M.
Present: Ward Fischer
Raymond Anderson
Bernard Cain, Jr.
Karl E. Carson
Henry Caulfield
Norman Evans
Harvey Johnson
James Waltz
Robert L. Brunton
Absent: Ronald Fulkrod
Everett Richardson
Staff members present: Cain, Hays, Hilgenberg, Krempel, Lewis, and Liquin
Minutes of Regular Meeting of
February 20, 1976, approved
Chairman Fischer inquired if there were any corrections to the minutes. Hearing
none, he declared the minutes approved as published.
Annual Adjustment of Rental Rates of
Surolus Water for the 1976 Growin¢ Season
Board member Caulfield inquired as to what is the economic value the City uses
as a basis for deciding the rental rates charged each year for surplus water.
Mr. Roger Krempel, Water Utilities Director, stated that market value is one
basis for deciding rates, as the City cannot rent the water for more than market
value. Chairman Fischer stated that the City was not trying to break even, but
was trying to recover more than the assessment price paid each year. Board
member Johnson stated that it is not wise to fluctuate the price year to year.
Board member Caulfield inquired if there were any records on the rental value
of water. Chairman Fischer stated that before the meeting next year, at the
time the Water Board annually adjusts the rental rates, it would be helpful to
get records from the Ground Water Association of the South Platte and various
other groups on this.
Mr. Charles Liquin, Water Project Engineer, recommended the assessment price
for Horsetooth Water be increased from $7.00 per acre foot to $8.00 per acre
foot. Board member Carson made a motion, seconded by Henry Caulfield, that
the Water Board recommend to the City Council a rental charge of $8.00 per acre
foot for Horsetooth water. The Chair put the motion which was unanimously adopted.
Mr. Liquin stated that the North Poudre Irrigation Company increased their assess-
ment by $9.00 per share for repair of their system. Because this money was going
towards reconstruction, he felt the City should not increase their rate of $42.50.
Board member Evans made a motion, seconded by Harvey Johnson, to recommend to the
Council a rental charge of $42.50 per share for North Poudre water. The Chair
put the motion which was unanimously adopted.
As the assessment paid for Arthur Irrigation water was increased by $1.00, Mr.
Liquin recommended the rental rate be increased from $4.00 per share to $5.00
per share. He recommended that the rental rate for Pleasant Valley and Lake
Canal water remain at $80.00 per share, and the rate for Larimer County Canal
No. 2 water remain at $73.00 per share. Water Supply and Storage water will
be rented back to the Company for $850.00 per share as per agreement. There
was no recommendation on New Mercer water and Warren Lake water as this water
is reserved for use by the Parks and Recreation Department. Board member Cain
made a motion, seconded by Norm Evans, to recommend to the Council the above
rental rates. The Chair put the motion which was unanimously adopted. ESee.
Appett�ta�lr* )
Adjustment of Cash in Lieu of Water Rights,
Section 112-66 of the Codes of the City of Fort Collins
Chairman Fischer stated that the administration recommended increasing the amount
of cash in lieu of water rights from $350 to $500 for each acre foot of water
required, as this amount is based on the value of one acre foot of Horsetooth
water, which has increased. Board member Caulfield inquired if it would be
possible to use the last bonafide purchase of Northern Colorado Water Conservancy
District water each time as a measure for deciding the cash amount, thus it
would be an automatic regulation, and the City would not have to review this
month to month or year to year. Chairman Fischer stated that the price varies
with each purchase of Horsetooth water, and this would not be practical. Mr.
Krempel stated that this should be acted on by the City Council, and with the
addition of staff in the Water Utilities Department, this will be reviewed
annually. Board member Caulfield made a motion, seconded by Karl Carson, to
recommend to the Council to adjust the amount of cash in lieu of water rights
from $350 to $500. Chairman Fischer put the motion, which was unanimously adopted.
Annual Adjustment of Water and
Sewer Plant Investment Fees
Mr. Roger Krempel stated that in analyzing the plant investment fees for annual
adjustment, it was found that there was a deviation from the base year 1973,
and the plant investment fees were gradually falling behind each year. He stated
that with the addition of staff, the Department was able to do a more indepth
analysis and alter the manner in which the plant investment fees were increased.
The increase this year was determined by taking the percentage of the increase
of the Water Utilities Department's projected expenditures and multiplying this
by the percent change in the index to determine the total weighted average
percentage change, which was then applied to the plant investment fees. He
recommended to increase the Water Plant Investment Fees for 1976 by 13% and
increase the Sewer Plant Investment Fees by 12%. A 13 page analysis was made
available to each member of the Water Board to explain how these percentages
were reached. Mr. Krempel stated the City had conferred with the Contractors
-2-
Committee, of which Bernie Cain is a member. Board member Cain stated that this
review is easier and more accurate and the plant investment fees are now up-to-
date. Board member Caulfield made a motion, seconded by Norm Evans, to recommend
to the City Council to accept these adjustments in the plant investment fees.
The Chair put the motion which was unanimously adopted.
5 Year Extension of Lease -Back Agreement
for 50 Shares of North Poudre Irrigation Water
Chairman Fischer stated the next item on the agenda is the consideration of a
5 year extension of a lease -back agreement for 50 shares of North Poudre Irrigation.
water for Mr. Gene E. Fischer. He inquired if there was a clause in the agreement
stating that the City can cancel the agreement at such time the City needs the
water. Mr. Liquin advised him there was such a clause in Mr. Fischer's original
agreement and will be included in the extension. Board member Johnson inquired
if the price of the water would be flexible. Mr. Liquin stated the rate will
be the annual assessment set by Council. Board member Carson made a motion,
seconded, to recommend to the Council to approve the 5 year extension of the
lease -back agreement for 50 shares of North Poudre Irrigation water for Mr. Gene
Fischer. The Chair put the motion which was unanimously adopted.
Lease -Back Agreement for 2-2/3 Shares
of Pleasant Valley and Lake Canal Water
Chairman Fischer stated the next item is the consideration of a lease -back agreement
for 2-2/3 shares of Pleasant Valley and Lake Canal water for Mr. Robert Worthington.
Board member Caulfield made a motion, seconded, to recommend to the Council to
approve the lease -back agreement with the same conditions as the above agreement.
The Chair put the motion which was unanimously adopted.
Report from Legislative Subcommittee
Board member Evans stated that under Section 208, Areawide Waste Treatment Planning
Committee, the Governor has taken into his office the 208 planning responsibilities
and set up a 208 Coordinating Council, with Jim Monaghan, the Assistant of Natural
Resources, as Chairman. He stated this is really a statewide natural resources
planning council and includes everything that is remotely connected to wastewater
planning. Board member Caulfield stated that with further respect to Section 208
Planning, the study is not in operation as yet.
Report from By -Laws Subcommittee
Board member Caulfield stated that the By-laws Committee received copies of sample
by-laws from other boards. He had noticed in the sample by-laws, there was some
repetition of policies already established by City Council, and he felt the Water
Board's by-laws should include just the unique parts. He has talked to the
Assistant to the City Manager on this. A draft of the by-laws should be completed
by the latter part of May.
Report from Long Range Goals Committee
Board member Evans stated that the Long Range Goals Committee had not met, but
he has collected statements from the Regional Council of Governments and the
Water Utility Department's long range goals.
-3-
Report from Utilities Committee
Chairman Fischer requested that City Attorney March attend the next Water Board
meeting to discuss the lawsuit of the City of Boulder relative to serving an
area with water, as this may influence the Water Board's view as to what they
would recommend to the Council. He stated it has always been the assumption
that if the City can control the water, it can control growth, which does not
seem to be true in the case of the City of Boulder. City Manager Brunton stated
he will send to the Water Board members a copy of City Attorney March's opinion
of the decision and also his memo that covers this. Board member Cain, Chairman
of the Utilities Committee, stated that the committee has met and formulated
goals and objectives. He requested direction from the Water Board as to what
guidelines, what powers, and what areas they want the committee to be involved
in. He stated the committee would like the Board's comments on these goals and
objectives and develop some guidelines before they go any further. Chairman
Fischer stated this would be deferred until the next meeting, when City Attorney
March will be able to attend.
Drought Study
Mr. Krempel stated that the Drought Study was requested by several members of
the Water Board, and was done by R. L. Thaemert, a graduate student from CSU.
He felt that it provides some valuable information to the Water Board. He stated
that it concludes that by the mid 1980's the City could experience a shortage
of water if there is a four year drought. Chairman Fischer stated that if there
is a drought, there are many ways to save water. Mr. Krempel stated that there
are many ways to accommodate the meaning of a drought condition, and these are
things that can be expanded upon.
Report on Joe Wright Reservoir Loan Application
Mr. Roger Krempel stated that on the Joe Wright Reservoir Project, the Bureau
of Reclamation hydrologists were not satisfied with the limited documentation
that was available, as the records on Joe Wright Creek extended for only 2 years.
Mr. Lyman Flook, a hydrologist with McCall -Ellingson & Morrill, synthesized the
flows of Joe Wright Creek, based on the 2 year records, with the water content
in the snow, of which there were records for a long period of time, and he did
this over a 17 year period. The Bureau also was not satisfied with the records
on Michigan Ditch, and Mr. Flook had to correlate the Michigan Ditch flows with
the records for the Michigan River. He also had to project the operation of
the reservoir over a 20 year period. There were a few years that there were
minor shortages of water. The Bureau was assured that by transferring water,
the condition of not having a full reservoir would be alleviated, and Mr. Ward
Fischer was asked to document and justify, from a legal standpoint, the authority
of the City to transfer water. It was also necessary to make a few minor changes
in the application, and it has been re -submitted to the Bureau for final review.
Mr. Krempel stated that because of the problems with the hydrology, the City lost
the opportunity to tailgate the 1977 budget, and will be in the 1978 budget.
Board member Caulfield stated the application must be approved by October of this
year by Congress to be put in the President's 1978 budget. Chairman Fischer
stated that everything that could have possibly been done by the Water Utilities
Department was done to get the application into the 1977 budget, and he is pleased
with their efforts. Mr. Krempel stated that even though the Highway Act has not
been adopted for 1976, the construction of Colorado Highway 14 has been scheduled
for this summer.
-4-
Report on Status of
Current.Projects and Studies
Mr. Krempel stated that the feasibility report on the Spring Canyon Dam outlet
is not yet completed. The preliminary figures for the work on the outlet are
$7 million and with the water treatment plant and transmission mains the figure
will be well over $25 million. He stated that the Horsetooth Water Service
Commission is investigating sources of funding for this outlet. The City is
also investigating the possibility of increasing the capacity at Soldier Canyon
Dam. They are proceeding with these studies, and the evaluations of these projects
will culminate late this year. Chairman Fischer stated the Northern Colorado
Water Conservancy District is thinking about the possibility of establishing
another sub -district in cooperation with this study, similar to the sub -district
for the Windy Gap project. He felt that there should be a better way to accommodate
needs than drilling an outlet into the dam. Mr. Krempel stated that he felt
pumping the water over the Spring Canyon Dam was more feasible, but that consideration
did not get too far from an ecological standpoint. He stated the City is still
looking at other alternatives.
Mr. Krempel stated the work on the 8 million gallon expansion at Water Treatment
Plant No. 2 is progressing and half of that plant will be in operation by mid -
April. It is scheduled to be back in full production by June 1. The design
of the waste discharge system at Water Treatment Plant No. 1 is proceeding in
order to meet the standards of the discharge permit. The contract for this work
will be let the first of July, as soon as Plant No. 2 is back in operation.
Sewer Treatment Plant No. 1 will be in service by late May or early June. Construction
at Sewer Treatment Plant No. 2 is on schedule and it will be in operation by
September or October. There have been some on -site modifications to the equipment
that has been shipped to the job.
Other Business
City Manager Brunton stated the City Council is taking a tour of the two sewer
treatment plants and the Water Board is invited to tour the plants at the same
time.
Mr. Liquin stated that Mirror Lake, which was offered to the City, is in the
area that may be added to the Rocky Mountain National Park as open space. The
developers say it may be as much as two years before it is fully documented,
and they will come back to us at that time.
Adjournment
There being no further business, the meeting adjourned.
Secretary
MIS