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HomeMy WebLinkAboutWater Board - Minutes - 10/18/1972Ll 9 WATER BOARD October 18, 1972 3:30 P.M. Present: Ward Fischer Dugan Wilkinson Fred Feit Owen Moore Everitt Richardson Harvey Johnson Robert Brunton Charles Liquin Roy Bingman Verna Lewis Also: Carl Houck - Black $ Veatch representative John Gagnon - Coloradoan Reporter Absent: Norman Evans Arthur March Chairman Ward Fischer reviewed for the Water Board.,Councills desire that new users pay their own way and this meant tap fees would be included in the rate study, raw water, etc., so that old residents did not have to pay for new development. Public Works Director, Charles Liquin, reviewed the steps taken on the rate study with the Water Board, and advised them of the initial determination. Growth projections and population projections as published by the DT2 were used for the rate study. Major Capital projections of water and sewer, prepared by the City staff and Black and Veatch were discussed with former City Manager Tom Coffey on February 15, 1972, from which Black and Veatch were advised, by letter, on Februai; 16, 1972, of any changes resolved. This then, dictated the flow of funds necessary to finance the rate schedule. The Firm of Black and Veatch was retained on a supplemental contract to make the plant investment fee study, which was presented to the City on April 11, 1972. At a joint meeting, May 30, 1972, of the Council and the Water Board, the Water Board assumed additional responsibility over sewers. The Plant Investment Fee was reviewed by the sub -committee on June 5, 1972; • and by the Water Board on June 15, 1972, from which Black and Veatch were advised by the Water Board to proceed with the rate study, based on the $500 for the Sewer Tap fee and $600 average for Water Tap fee, both to include any installation. • •ctober 18, 1972 The Sewer Capital project was reviewed with .the Water Board and Council on July 7, 1972, from the Council entered into an Engineering Contract on July 27, 1972, with Black and Veatch for the improvement of the two sewer plants. At this time, the cash flow was revised, in that the City had been advised by HUD that federal fun ds were not available to the City of Fort Collins for water improvements and also a revised cost estimate of Joe Wright Reservoir was received from McCall -Ellingson. This increased the necessary cash flow by 3.2 million dollars. On September 11, 1972, Black & Veatch were advised by the Water Board that they were to use the new cost for Joe Wright Reservoir in their cash flow and to proceed with the rate study. A revised flow of funds study revealed a change in the water revenue from 25% on the old Joe Wright Reservoir estimate to 60% on the new estimate. The sewer revenue was to remain at 50%. Concerns of the Water Board included the following: 1. The proposed approximate 100 percent increase for the flat rate, single family residential customers would be "politically unacceptable" for the Council to consider and the residents to accept. 2. The suggested rates were based on formulas for allocating costs and members felt more factors should go into the rate analysis than just formulas. 3. Tentative rates proposed are based on major capital improvements, needed over the next five years. Improvements include $4.6 million for develop- ment of Joe Wright Reservoir. The Board further discussed the assumption made in directing the study and went on record as approving the $600 for water and $500 for sewer, and the policy of a yearly review of rates to be made by the Public Works Director, review also by Water Board for recommendations to Council. Owen Moore Board member / reviewed the Charter provisions for handling the 15 mill limitation ind the limited tax bond. Chairman Ward Fischer requested Black $ Veatch to provide various alterna- tives to the rate increases so the Water Board would have a choice on which to base a recommendation Pub'.ic Works Director Charles Liquin submitted for the Board's perusal a letter from Black $ Veatch in regard to the Sewer Treatment Plant designs. No action was taken under this item and the next Water Board meeting was to be scheduled when new rate study alternatives have been prepared. There being no further busiiess to come before the Board, the meeting • adjourned at 5:00 P.M. �7 ti LCC „ Secretary °'