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HomeMy WebLinkAboutWater Board - Minutes - 09/14/19730 0 WATER BOARD September 14, 1973 3:30 P:M. Present: Ward Fischer Harvey Johnson Fred Feit Everett Richardson Bernard Cain, Jr. Owen Moore Norman Evans Robert Brunton Absent: Karl E. Carson James Waltz Dugan Wilkinson Staff members present: Charles Liquin Ed Hilbenberg Charlie Cain Verna Lewis Chairman Ward Fischer called the meeting to order at 3:30 p.m. Water Board to recommend to the City Council acceptance of shares of Arthur Ditch Water to satisfy raw water requirements of Inter- national Investments and Management Corporation, and to recommend reopening discussion with Arthur Ditch Company. Chairman Ward Fischer outlined the request, and brought the Board up to date on the problem as follows: Mr. Ken Anderson, who was present, representing International Investments and Management Corporation, had purchased a portion of the property owned by Mr. Ed Johnson, and the sale of the property.had been preceeded by certain letters, one addressed to Mr. Bill Hansen, realtor, from the former City Manager, Tom Coffey, which read in part: "This letter is written in confirmation of our conversation at noon today. Arthur Ditch water yields 4.42 acre feet per share and the City requirements are two acre feet per acre if you settle on the gross acreage; thus, if you develop 110 acres, you would need 220 acre feet of water or approximately 50 shares in the Arthur Ditch. If you develop the same amount on a net basis deducting the paved area of the roads from your gross acreage, then the City requires three acre feet per acre, however, unless r 9 Page 2 you are putting more roads than normal, your best deal is to go gross and two acre feet". There was some additional correspondence; the sale of the property was consumated, and there had been certain Arthur water turned over to Mr. Anderson and his associates; in the meantime, the City had proceeded with its plan of augmentation on the Arthur Ditch and other ditches, which were protested and in the course of things, with the consent of the Arthur Ditch people, the City imposed a moritorium on the further acquisition of Arthur Ditch stock, which moritorium is still in effect. The question was whether the above mentioned letters constituted a contract. City Attorney March, after looking over the correspondence, had advised that in his opinion, they did not. Mr. Fischer further stated that as the correspondence disclosed, Mr. Johnson was a client of James Beatty's and that he would not vote on the pro- posal, he did have other thoughts in regard to this water which seemed to be worthy of investigation; the matter was put on a moritorium with the understanding that the City would start having discussions with the Arthur Ditch and the other ditch companies; there was no reason why this Arthur Ditch stock should not be accepted by the City, and there is no reason why the Arthur Ditch should object to being accepted by the City. They did ob- ject to the plan of augmentation and the City was finally able to work it out as far as the conditions of the transfer when the City tried to use those water rights in our exchange with North Poudre; the City had to leave 15% of it in the ditch, which was fine; it was felt that the City would work something out with them and the City could leave 10% or 15% in the ditch, and it really wouldn't make much difference to the City of Fort Collins, provided that the City knew what the Ditch Company would accept and then as the City took future waters, the City would adjust the water .credits down to whatever represented what the City would be allowed to have on top of it. The Chairman was hoping that the City would have such discussions and possibly this very crises now would be what would precipitate such a discussion, but as a matter of fact, the City has not had such discussions, although Mr. Strahle, repre- senting the Arthur Ditch Company, has indicated a willingness and the Chairman hoped that this Board would agree, so that there is beside the contractural question, a policy question of whether or not the City should, perhaps use this present problem as one way to get the discussion going with the Arthur Ditch. Mr. Ken Anderson gave a report as to his understanding of the written correspondence and the willingness of International Invest- ments to transfer to the City 49.03 shares of Arthur Irrigation stock to meet the raw water requirements. Mr. Norman Merfield, President of International Investments, stated he would like to emphasize that they had been operating under the 0 • Page 3 assumption that this water would be acceptable to the City based on the correspondence from Tom Coffey; they were unaware that there was any problem until the apartment taps became necessary, and if this water were not accepted, it would have a substantial impact on the company. The Chairman stated he could think of three possible courses of action that the Board might take and there might be others and he did not mean to suggest any of them. 1. The Water Board could recommend that under the circumstances, the City accept the water. 2. The Water Board could advise the Council that the acceptance of the water violates their policy and if there were some exception to be made, because of some action of the admin- istration, the Council should do it. 3. That the Water Board suggest that it take the initiative in attempting to work something out with Arthur Irrigation Company in regard to the possible use of the water. Director of Public Works, Charles Liquin, was asked by the Chairman if he had any recommendation on the matter. Mr. Liquin stated he felt the City had a commitment and sopke to the 431 acre feet of water still owing to North Poudre in fulfillment of the con- tract, adding if the. Arthur Ditch water and other water in the south side ditches were added up, the City could make a transfer and pay off the amount to North Poudre. The Chairman stated there was still the question of the shrinkage; should it be 10%, 15% or 25% in the Arthur Ditch; at the time of the augmentation and the City did not want, at that time, to get into another conflict with the Arthur Ditch Company, but were hoping to work it out as part of their discussion. Board member Harvey Johnson spoke in favor of the City's honoring this commitment. Dr. Norman Evans also stated he felt this was a commitment prior to the moritorium and that the City should now go to Arthur Ditch and get into discussions with them again. Board member Owen Moore made a motion, seconded by Harvey Johnson, that the Board recommend to the Council that notwithstanding the moritorium, which will otherwise remain in effect, this water be accepted on the basis of the City's having made a prior commitment, to accept it and that if the Council agrees, we further recommend that the City, because of its ownership of this additional water, commence negotiations with the Arthur Ditch Company in an attempt to amicably resolve the differences between the City and the Arthur Ditch Company, if any, and in any event, with or without such resolution of differences, that the City proceed to further augment our plan of augmentation and to use this water source to • • Page 4 satisfy with other waters, the North Poudre contractual obligations. The Chairman put the motion which was approved. (Ward Fischer abstaining.) Report of Denver Water Board Meeting Chairman Ward Fischer stated Board member Karl Carson had attended a meeting of the Denver Water Board. Dr. Carson was unable to attend the meeting and Mr. Fischer would briefly report to the Water Board, and Dr. Carson would get more information and report in more detail at the next regular meeting. Basically what the Denver Water Board is concerned about is Eagle - Piney Project where they put their wilderness area to such a point to where they can now be allowed to go in and construct with the Selby's to divert all of the water upon which they have filings. The question, however, under discussion, is somewhat broader and they were talking about the position of all of the front range cities in regard to all of the ecology/versus/resources problems; the attempt was to arrive at some policy or have the cities arrive concurrently in some general approach, to where the cities could protect their own water interests. The Chairman was reluctant, at this particular time, to encourage the Water Board to get terribly involved with the problems that really concern the City ofDenver and that it is a fine project, yet he was sympathetic with some of the other aspects of it and he had written to the Denver Water Board and received just today some additional information, as to what they had in mind.- Dr. Carson will attend the next meeting and it will be prior to the next meeting. Election of Officers Board member Norman Evans nominated Ward Fischer for President. Motion was made, seconded and passed that nominations cease; by a majority vote of the Board (Ward Fischer abstaining), Ward Fischer was elected President. Board member Harvey Johnson nominated Norman Evans for Vice President. The Chairman inquired if there were other nominations. By unanimous vote Dr. Norman Evans was elected Vice President. Chairman Ward Fischer then appointed Verna Lewis to serve as Secretary. The Chairman stated a regular meeting date for the Water Board meetings had been set and that it was now proper to establish rules of procedure; especially the number required for a quorum to ac- complish the following: • • Page 5 1. To make sure that the action taken by the Water Board is representative of the whole Board. 2. To make sure that the Board can take action when action is needed. Board member Everett Richardson started discussion on the quorum required for a special meeting and the Board continued discussion on notices for such meetings. Board member Everett Richardson made a motion, seconded by Owen Moore, that a quorum of the Water Board for any regular or special meeting would be five members, the ex-officio member may be counted in computing the five members to constitute a quorum. The Chairman put the question which was unanimously adopted. By consensus of the Water Board members present, September of each year was set for the time of election of officers. Board member Everett Richardson inquired into who would appoint representatives to other special committees, such as the Six City Water Committee. City Manager Brunton inquired who had appointed Norman Evans to the Six City Committee and Harvey Johnson stated a committee of three had been appointed, by Council action, the committee consisted of Owen Moore, Norman Evans, Harvey Johnson and Tom Coffey. It was decided that appointments would be made by the chair. City Manager authorized to respond to request for water service for Mill Canyon Development by Spangler and Cambell Associates Charles Liquin reviewed the reason and request had come to the Water Board as follows: The agreement with the West Fort Collins Water District, which dates back to approximately 1966, defines the boundary of the District; they were given permission from the City to serve that area, but that any enlargement of the area within their District had to come to the City for permission. Administratively they had allowed the expansion to a single customer, now the request was to serve 400 additional customers, and he felt it should go to the Water Board and the Council to allow the District to expand to this extent. The Chairman inquired if this request would have more to do with the planning functions of the City rather than with water service? Board member Everett Richardson inquired who was going to furnish sewer service to them and was advised that the LaPorte Water and Sanitation District would handle the sewer, in which case it would come back to the City, their capacity was for about 700 taps. The Chairman stated that perhaps it would be the proper function of the Water Board to suggest to the Council that from the stand- • • Page 6 point of the water resource utility, the Board was not concerned, but this is a matter which involves the development of land to the foothills and that they should seek the advice of their own planning department within the City in considering whether or not they would give consent to this. The Chairman requested that the City Manager so recommend to the Council. Report of September 10, 1973 Six City Municipal Subdistrict Meeting Dr. Norman Evans gave the following report: The adjudication procedure is going on and will go on for a long time. Mr. Sayer's estimate is two years, the State of Colorado has entered into proceedings in opposition to the US claims, but the Defense Department has apparently a solid claim on 200,000 acre feet that is destined for oil -shale use, Mr. Sayer did not think there is much chance of interfering with a US claim but others, he is optimistic about. The covenance contract with the Bureau is apparently in good shape but slow in being signed in the Interior, but appears not to have any hurdles toward signing, they think that will occur almost any day, and they have for several months, however, there does not seem to be any obstacles. The judgement of all of the representa- tives, which included all six, including Longmont, seems to be that we should not move, at this point, in investing into the project until the adjudication is cleared more fully so that we could judge better what we really have. The earlier attitudes were sort of mixed on this point but in- clined a year or two ago to be more optimistic. The feeling now is that we should push ahead toward getting engineering works going in spite of not having the adjudication settled and more or less to follow the pattern that had been used before successfully by Denver and others in that regard. The attitude is more definitely changed now and is 'far more conservative on that so that in sum- mary, the cities wish, at this time, to merely keep the adminis- trative and legal processes alive and active for the purpose of the proposal and wished to recommend to each of the City Councils an assessment of $6,000 again this year. That is a recommendation that I am going to propose that the Water Board make to the City Council because I think it is important to say with it and keep that much alive. So far as the sub -districts business activities are concerned, they have to make up a budget and add certain legal requirements in respect to that budget, one of which has to do with budget changes and I guess it isn't easy to change the budget once it is established, for that reason they are putting into the budget an • . Page 7 item of $150,OOO as an increase item, in case everything happened at once; adjudications jelled and a good project was in sight and the cities or some of them decided to push ahead into engineering design and acquisition of right-of-ways and other steps that will have to be taken once the project is definitely solidified, so they put into their budget an item which is large but without any as- surances or perhaps without even any intentions that it will be used. The Chairman inquired if the sub -district was planning, in con- nection with the oil -shale, any engineering studies to see what effect that would have on the project. Dr. Evans stated it was suggested that the CORSIM model is about operational. It is his impression that they were thinking of using a little of the $30,000 or the $6,000 per city to do it with, and he thought they should, and Mr. Barkley's estimate was some where in the few hundred dollar range for a run of some kind with the model, but in any case, that would be the way it could be done, and he would suggest that it should be done. Board member Norman Evans made a motion to recommend to the Council the contribution of $6,000 for 1974 to the Municipal Sub -district, seconded by Owen Moore. The motion was passed. Director of Public Works, Charles Liquin, stated that not directly involved with the Six Cities, but discussed at the meeting was the prevailing price for Horsetooth water. It was stated Boulder had paid $265 a unit a year ago, Estes Park had authorized $256 to $275, Greeley had paid $300, Kodak is paying $300 plus a finders fee, Loveland has just recently paid $260 and Longmont just recently purchased some for $280. The last purchase the City of Fort Collins made, at the recommendation of the Water Board was $250. The Chairman stated it had been the thinking of the Water Board that until such time as a determination was made on Windy Gap or Joe Wright that it would be just to save money. Mr. Charles Liquin next stated, an item not on the agenda, was the consideration of a change in the ordinance as regards the raw water requirements, which the City Manager had recommended to the City Council. No action was requested at this time. Board member Harvey Johnson spoke to the history of the water requirement at the time it was established. It was the feeling, at that time, that the requirement was insufficient, and the recom- mendation had been to raise the requirement from two acre feet to three acre feet. The Board discussed at length the requirements of water districts, and the shrinkage involved and the units per acre as applies to condominiums and apartments. • Page 8 Board member Bernard Cain, Jr., stated he felt the situation should be delved into to see if three acre feet were required, or four was more realistic. Everett Richardson responded that this item had been discussed at other meetings and that it was the feeling that the City is not being adequately compensated for new land coming in. The Chairman stated that with the enlarged Water Board, one of the advantages was the input of different view points and perhaps Mr. Cain would like the opportunity to table action on this recommendation. Board member Bernard Cain made a motion, seconded by Norman Evans, to table a recommendation to further examine the costs and what is involved and at that time arrive on the need to increase the price per acre and units of water. Roll was called. Yeas: Cain and Evans. Nays: Moore, Feit, Fischer, Johnson and Richardson. Motion was made by Everett Richardson, seconded by Owen Moore, that the Water Board recommend to the Council that the requirements for furnishing water to the City be changed, when convenient to do so, from two acre feet to three acre feet on f5w basit and from three acre feet to four and one-half acre feet on a a basis with required payments in lieu of water of $300 per unit for units not furnished and to include that the foregoing is reasonable and necessary to adequately compensate the City for the service. Roll was called. Yeas: Evans, Moore, Feit, Fischer, Johnson and Richardson. Nays: Cain. Report on Status of Rate Increases Chairman Ward Fischer started discussion on the item and, stated "in connection with the rate increase, I very much appreciate having your very thorough report on the Council's actions. There were some particular questions, . . . I want to make sure that my comments are only so that I understand and that the Water Board understands the view of the Council. I think that the Water Board is, from its expressed views, perfectly in accord that the Water Board makes recommendations to the Council and that then the Council takes such action as it in its independent judgement decides, taking into account whatever political or other matters that it wishes. My questions in regard to what the Council did are not to be interpreted in any way as critical of the Council's judgment, but so that we can have a complete record of what the Council's policy decisions are so that in future actions we can comply with it. In that regard, I would like to know several things: one, did they wish us to make a study concerning water meters? Two, do they wish a rate recommendation? In connection with the water meters to be provided free by the City to low in- come citizens, will this be paid out of the General Fund or will this be paid out of the Capital Improvement Fund that is included in our Capital Improvements Program for the Water Fund? If so, to what extent will that interfere with our'Capital Improvement • • Page 9 Program that the administration suggested to us in the form which we made our recommendations? In other words, if that is going to be paid out of something other than the General Fund, what items of capital improvement, that we were recommending is going to be deleted? What projects specifi- cally were moved back to allow the lesser rate increase, and if it is Michigan Ditch and Joe Wright, is there anything in the budget for preservations of those rights? In regard to the number three sewer plant, what is the Council's policy in regard to the ability of the City to control growth in the south, considering that the Water Board had assuemd, in our past discussions, that the existence of the number three sewer plant would allow us to control the growth in that area and how does this affect our expressed policy of resisting the formation of sewer districts in that area, which is our present policy? City Manager Brunton reviewed the background on his perception of council's position, their concern for keeping the increases as low as possible and to try to give relief to the low income elderly. Mr. Brunton stated further that Council did desire the Water Board to proceed on the water rate study in the one year outlined, under guidelines that can be modified in order to start discussions some time in October and get the information to the Council by November. City Manager Brunton also stated that as the Administration wrestled the problem that it was felt that a regional type of sewer facility should be approached on a regional basis rather than by the City of Fort Collins. Further, the administration was getting feedback from the districts, that the City was superimposing the City's value system on them without having input from them; that the City did not have a monopoly on the desire for quality growth and that a joint effort should be made to work out the problems by either a metropolitan sanita- tion district or a metropolitan water district, with the emergence as a group decision. The question of water meters and how they are to be financed and the need to get across to the public the City's water and sewer story was also discussed. Chairman Ward Fischer inquired what capital projects had been deleted and if it was Michigan Ditch or Joe Wright, if there was anything in the budget for them. City Manager Brunton replied that they were deferred for a year or two with some money spent for retention of them, he also spoke to the questions of a temporary permit towork on the ditch, the $20,000 in the budget for maintenance and the notification given the City on the required environmental studies. He stated there would be sufficient money available to do necessary work to pro- tect all of the City's rights. Board member Harvey Johnson stated the first need was for a master plan; to proceed with the environmental studies. Board member Richardson stated the City should not be intimidated by the Forest Service. • . Page 10 Chairman Ward Fischer stated the purpose in raising these questions was not in any way to criticize the Council, but that it was es- sential that the minutes reflect some result which followed the .Board's recommendation so that in future years, as the Water Board changes, they may refer back and keep a course; there has been difficulty in the past to keep track of things; and he restated what the Board understood to be the Council's position on, some of these things, and requested that if he was incorrect, that the City Manager make corrections to get the items right. The Chairman stated: "We are informed that the Council does request the rate increase study as we recommended". City Manager Brunton responded "yes". "We are informed that in regard to our recent recommendations, that the Council does request a water meter study as.we recommended". City Manager Brunton responded "right". "We are informed in regard to water meters, that attempts are being made to explore revenue sharing and other sources of finance". City Manager Brunton stated that he did not think any definite action had been taken by the Council on this, that in the ordinance that was passed on first reading, this is a "whereas", pending further study. The Chairman continued "in the event that water meters are to be paid out of water funds, the Water Board requests to be advised as to what projects from the capital con- struction fund are to be deleted to pay for such water meters." City Manager Brunton stated the administration did not know the ansr. The Chairman requested, on behalf of the Borad, that when Council does make a decision, on that matter, that the Water Board be advised.=p, The Chairman continued "in regard to the water capital projects, which were deferred, we are advised that the Council has elected to defer for a year or two, certain of the capital improvement projects planned for Michigan Ditch and Joe Wright Reservoir, but that we are further advised that there are funds available for planning and maintenance to the extent that they are necessary. In regard to the elimination of the number three sewer plant, we are 'advised that the Council recognized that the deletion of that plant constitutes a change in policy, that by deleting such plant, the Council is turning to a concept of a regional solution to the problem rather than the concept understood by the Water Board of City control of growth south of the City; the Council further, by deletion, recognized that it effectively terminates the present Policy understood by the Water Board of resisting the formation of new sewer districts in the area"7 City Manager Brunton stated there were six sewer districts, with two being formed in the last six months, and one water district in the last six months, and that the Council felt that the previous Policy had not been effective. . • Page it The Chairman continued his remarks as follows: "I prefaced my remarks by stating that my comments were not to criticize the Council, the Council is the one that properly makes decisions. We had in the past, long before the present Council and before the present administration, had a continuing problem of communica- tion between the Water Board and the Council. They would go oft one way and we would go off on another way because we never com- municated, our minutes were never reflective, we never knew what the Council's policy was and the Council never knew what our policy was. I want to make sure that as the Council makes policies, that we understand them; I had honestly thought that our policy was understood, whether right or wrong, whether effective or not ef- fective, that the number three plant was going to be utilized if growth south of Fort Collins could be controlled, and I had honestly thought that we had made a clear decision to resist the formation of water districts in that area. If I am in error in stating our policy, then what I said should be stricken from the minutes, because I was merely trying to state what I thought was the Water Board's understanding. I have no objection to any policy decision that the Council makes in this regard, but if I am in error -- from what I understand our policy reflects, is so that we will not in the future go under some misapprehension or what the policy of the Council is in the problem. The Council is the elected representa- tive of the people in this community and they are the ones to properly make decisions, if they elect to have no capital improve- ments program in water or sewer, that is their absolute privilege- -so my remarks were not meant to be critical --I know that the policy has not been effective --all I am trying is to get our policy in accordance with the Council's policy which this Water Board, as long as it works for the City, will attempt to follow". City Manager Brunton stated that the Water Board could do more good if it took the leadership in making the study on the relation- ship of the City of Fort Collins to the water and sewer districts. Chairman Ward Fischer stated the Water Board was acting on a study, and that it be reflected in the minutes, in connection with the entire policy because it ties in with the regional concept and was one that Dr. Norman Evans is heading; nothing formal had been done, but several members of the Water Board had met with the representa- tives of some of the Water Districts and they suggested that we explore how we could solve our problems and get together on some type of metropolitan water -sewer district or things of that nature. It was very indefinite, but it had been agreed to get all the in- formation from the sewer and water districts and trom the City and it was given to Dr. Evans who had some graduate students working on it with him this summer and they were putting together some kind of a study, and hopefully, some recommendations in regard to the whole regional concept which may well, or may well not, tie in with what the Council has in mind. Dr. Evans stated he would like to respond; both he and Mr. Richard- son had both been involved, the students concluded the work that had been assigned, and it would not amount to as much as had been • • rays lc hoped in terms of progress as had been described, but they did have a start. City Manager Brunton stated the need for both the City Council and County Commissioners to be involved in the beginning on any studies and the need to have more dialogue between the Water Board and the Council on a continuous basis. City Manager Brunton further stated the Council and Water Board should meet once or twice a year, and perhaps the Water Board should take another meeting on the ordinance for raw water requirements and have those in opposition appear before the Water Board. Chairman Ward Fischer stated the City Manager had a point and he would not be adverse to a motion to reconsider and requested the Secretary to advise the press and radio that at the next meeting, it would be considered. Board member Norman Evans made a motion, seconded by Fred Feit, to reconsider the motion on increases for raw water requirements. Yeas: Fischer, Johnson, Feit, Richardson, Cain Jr., Moore and Evans. Nays: None. City Manager Brunton stated there would be a staff report with the agenda on this. The Chairman stated he wanted to make sure that although there is still a motion pending on the increase requirements, both from the standpoint of gross and net water requirements and money, now it may be that the administration, when developing its recommenda- tions, will have some recommendation other than the motion that is pending, and the administration is welcome to submit alternative views if they wish to do so. The Water Board would very much ap- preciate the administration having some view when we consider the matter, but the chairman wished the administration would also make reference to the motion which is pending and discuss the effect of that even if the administration has different recommendations. If Mrs. Lewis would do, the Board requested that she notify the press and radio, that in this chamber at our next regular meeting, the Board will discuss this proposal and that they will welcome participation on that matter. The Chairman stated it would be the ruling of the chair that at a regular Water Board meeting, the Board would consider anything that anybody wished to present, whether it is on the agenda or not•. The Chairman also requested the City Manager to advise him as to the recommendation on the Ed Johnson property question so that if the Council does pass the recommendation, he could get in touch with the Water Board representatives that would meet with Arthur Ditch Company and get this going. Board Member Harvey Johnson requested a staff report on how much water is being used on an acre of ground. • Page 13 City Manager Brunton stated, for the record, he had already sent a memorandum to the Council regarding this subject as follows: IX. Development of adequate water and sewer systems should not be a deterrent to growth per se. Other controls should be employed. Growth customers should pay their own way by: A. Annual review of plant investment fees and possible changes if necessary. B. Adoption of new participation for oversized main construction. C. Possible change in raw water requirements. Present requirement -- 2 acfe..feet per gross acre or 3 acre feet per net acre with cash credit of $250 per acre. Possible change to 4 acre feet per gross acre or 5 acre feet per net acre with more realistic cash credit per acre Chairman Ward Fischer stated if there were no objection, the Water Board would meet at 3:00 p.m. on October 12, 1973. The Chairman also stated if it would be desirable to preceed the rate recom- mendations by public hearings, possibly the Council would want to grant the Board a couple of extra months on the question. City Manager Brunton stated it would be helpful to have rate hearings, perhaps joint hearing with the Water Board and the Council. The meeting adjourned at 5:45 p.m. l! Secretary