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HomeMy WebLinkAboutWater Board - Minutes - 07/09/1999NORTHERN COLORADO WATER CONSERVANCY DISTRICT MINUTES OF BOARD MEETING HELD AT DISTRICT HEADQUARTERS BOARD ROOM July 9, 1999 I. CALL TO ORDER The Board of Directors of the Northern Colorado Water Conservancy District (District) met pursuant to call. Present were President Mike Applegate, Vice President Kenton Brunner, Directors William E. Bohlender, William H. Brown, E. L. "John" Caneva, William Condon, G. Raymond Joyce, Marjorie Knievel, Leslie J. Williams Jr., Jerry D. Winters, Ruth Wright, and Director Emeritus W. D. Farr. Director George Jenik was absent. The following staff members were present: General Manager Eric W. Wilkinson, Associate General Manager and Chief Engineer Darell D. Zimbelman, and Legal Counsel Bob Trout and Bennett Raley. See the attached list for additional staff and guests in attendance. II. PUBLIC COMMENT ON NON -AGENDA ITEMS President Applegate asked for public comment on non -agenda items. There were no public comments. III. MINUTES OF NNE 11, 1999, BOARD MEETING President Applegate next asked for a review of the June 11, 1999, Board meeting minutes. Director Brown moved approval of the minutes as submitted. The motion was seconded by Director Wright and passed unanimously. IV. MINUTES OF JUNE 3,1999, PLANNING AND ACTION SESSION President Applegate asked if there were any suggested changes to the June 3, 1999, Planning and Action Session minutes. There being none, Director Joyce moved approval of the minutes as submitted. The motion was seconded by Director Caneva and passed unanimously. V. FINANCIAL MATTERS President Applegate asked for a presentation of the Treasurer's Report. Dr. Zimbelman referred to the prepared report that provided an overview of statements concerning cash receipts and disbursements, transfers of funds, and total cash and reserves as of June 30, 1999, for the District and Inter -District Service funds. Dr. Zimbelman also briefly discussed cash flow, reserve funds, and cash balances. Director Brown moved to approve the Treasurer's Report as submitted. The motion was seconded by Director Knievel and passed unanimously. Page 2 District Minutes July 9, 1999 President Applegate then asked Vice President Bremner for a report of the Finance Committee. Vice President Brunner, Chairman of the Finance Committee, referred to the list of disbursements for June 1999, which was mailed prior to the meeting for the Board's review. Following questions, Vice President Bremner moved to approve payment of the June disbursements as submitted. The motion was seconded by Director Knievel and passed unanimously. President Applegate then asked Dr. Zimbelman for the Actuarial Valuation Report. Dr. Zimbelman referred the Board to the Revised Actuarial Valuation of the Group Pension Plan for Employees of Northern Colorado Water Conservancy District, prepared by Gary A. Heaston, FSA, Milliman & Robertson, Inc., of Denver. Dr. Zimbelman briefly discussed the major findings of the report including the actuarial accrued liability, the actuarial value of assets, the unfunded actuarial liability, and the required contribution for calendar year 1999. Following questions, Dr. Zimbelman directed the Board's attention to the guidelines, methods, and assumptions used to prepare the report found in Section 2. Finally, Dr. Zimbelman pointed out that the District's forecasted annual required distribution will nearly quadruple over the next two decades. VI. ALLOTMENT CONTRACT CHANGE APPLICATIONS President Applegate thanked Dr. Zimbelman for his report and then asked for a presentation of the allotment contract change applications. Mr. Jerry Westbrook, Head, Land and Water Contract Services Branch, referred to the list entitled "Applications for Change of Water Allotment Contracts" dated July 9, 1999. He stated that the ten applications included a total of 591 acre-foot units being transferred with 112 of those units (19 percent) being transferred to cities, towns, and rural domestic water districts. He then called the Board's attention to three applications that required field exams. Mr. Westbrook advised the Board that the allotment contract change applications met all statutory requirements, rules, and criteria previously established by the Board, including the criteria of the Interim Base Water Supply Policy, and were, therefore, in order and ready for the Board's consideration. Director Williams moved approval of the allotment contract change applications as presented. The motion was seconded by Vice President Brunner and passed unanimously. APPLICATIONS FOR CHANGE OF WATER ALLOTMENT CONTRACTS July 9, 1999 % of Total Water Acre- Supply Acre - Foot Foot From S-T-R Units To S-T-R Base C-BT Units Pineda & Sons, Inc. 4-6-67 80 20 30 Pineda & Sons, Inc./ Pineda & Sons, Inc. 4-6-67 73 27 46 Pineda & Sons, Inc./ Kelley 4-6-67 80 Kelley, James 4-6-67 85 15 4 00 T Page 3 District Minutes July 9, 1999 % of Total Water Acre- Supply Acre - Foot Foot From S-T-R Units To S-T-R Base C-BT Units Coulson, J. Rick 35-6-65 69 31 37 Coulson/Greeley-Weld County Greeley -Weld County Airport Authority 35-6-65 50 Airport Authority Corp. 58 42 13 Koppes, Gayle 16-5-68 15 Koppcs/ Left Hand Water Dist. 16-5-68 25 Left Hand Water Dist. Corp. 10 Brooks - Toltz Boulder Farm/ Tumer/Longs Peak Water Turner, Arnold 18-3-69 42 58 294 Dist. 18-3-69 300 Longs Peak Water Dist. Corp. 6 West Wind Ranch, LLC/ Longs Peak Water Dist. 8-3-69 1 Longs Peak Water Dist. Corp. 1 Rogers & Assoc., et al/Ft. Ft. Collins -Loveland Collins -Loveland Water Dist. 3-7-69 10 Water Dist. Corp. 10 County of Boulder (Prev.: Wasson)/County of Boulder 28-2-69 3 County of Boulder Corp. 3 County of Boulder (Prev.: Wasson)/County of Boulder 28-2-69 2 County of Boulder Corp. 2 County of Boulder (Prev.: Dodd et al)/County of Boulder 34-2-69 20 County of Boulder Corp. 20 Wilken, et al/Town of Wilken, John, et al 6-5-66 15 Windsor 6-5-66 100 Town of Windsor T.U. 85 Mr. Westbrook then referred to a draft letter in the Board packet. The draft letter from the District to Ms. Teresa M. Jurgen, dated July 9, 1999, calls for a public hearing to be held by the Board at 9 a.m. on August 13, 1999, for the purpose of considering a joint Change Application for a Class D Allotment Contract of 10 acre-foot units of Colorado -Big Thompson (C-BT) Project water attached to a parcel of land being divided in ownership by Lyons Valley Park, Inc. A short discussion ensued concerning information related to this public hearing. VII. INCLUSIONS President Applegate continued the meeting by asking for a presentation of the inclusions that were published for hearing before the District Board of Directors. The petitioners were: Page 4 Jensen, Guy D. - Weld County Newton, Donald W. - Weld County District Minutes July 9, 1999 Mr. Westbrook referred to the prepared inclusion map and briefly reviewed the inclusions. The petitions for inclusion meet established Board criteria. These applications have been advertised as required by law and can be recommended for approval by the Board. Director Bohlender moved approval of the petitions for inclusion. The motion was seconded by Vice President Brunner and passed unanimously. VIII. OPERATIONS AND MAINTENANCE REPORTS President Applegate thanked Mr. Westbrook for his reports and next asked for a presentation of the Operations and Maintenance (O&M) Report. Mr. Lynn Raveling, General Superintendent, Operations and Maintenance Branch, began by reporting that Windy Gap deliveries were approximately 1,486 acre feet for June. The C-BT Project began spilling on June 14, 1999. There is no accumulated in -lieu delivery debt for any Windy Gap account as of July 9,1999. C-BT Project deliveries were approximately 8,290 acre feet for June. The District began spilling carryover water on June 17,1999, and finished spilling carryover water on June 22,1999. Approximately 28,316 acre feet of carryover water was reserved, approximately 9,295 acre feet of carryover water was delivered, and approximately 19,021 acre feet of carryover water was spilled. Refund checks have been prepared and mailed to those allottees who had carryover water canceled. Mr. Raveling reported that during May and June 1999, the District exercised its decree on the Big Thompson River and diverted 51,674 acre feet of water, 42,645 acre feet of which went to Horsetooth Reservoir, with the remaining 9,029 acre feet going to Carter Lake. Mr. Wilkinson announced that with these deliveries a larger portion of the conditional water right from the Big Thompson River for Horsetooth Reservoir can now be made absolute. Mr. Raveling next reported on precipitation and storage figures for June. Precipitation in June for the five stations within District boundaries averaged 1.35 inches, or 61 percent of average. Total precipitation for the year is 10.54 inches, or 115 percent of average. Storage levels as of July 1,1999, are as follows: Lake Granby is 100 percent of capacity, Horsetooth Reservoir is at 96 percent of capacity, Carter Lake is at 99 percent of capacity, and Boulder Reservoir is at 87 percent of capacity. Regarding maintenance activities, Mr. Raveling reported that the Electrical Service Modernization Contract for the Farr Pumping Plant is complete. With the extended work that was accomplished, the total cost was $75,000—approximately $8,000 more than the original contract for $67,000. Mr. Raveling stated that work crews are preparing to pave the area around the Farr Pumping Plant and shop. The contract for this work was awarded to Elam Construction, a West Slope contractor, after comparative pricing was done with other contractors. Mr. Raveling discussed the District's vegetation control program. Crews are currently mowing and spraying the canal easement and other facilities maintained by the District. Staff are using 2-4-D and Vanquish in this work, however, 0 Page 5 District Minutes July 9, 1999 Vanquish is only used in dry areas and not in the canal prism. Mr. Raveling concluded by stating that crews are also busy grading roads, and that District employees have also started their annual pipeline maintenance activities on the Southern Water Supply Project pipeline. IX. RATE HEARING President Applegate thanked Mr. Raveling for his report and next asked Dr. Zimbelman to discuss the upcoming Rate Hearing. Dr. Zimbelman stated that the Rate Hearing is scheduled for August 13, 1999. He directed the Board's attention to a draft notice prepared by staff for the Board's consideration. This notice will be mailed to the public, informing them of the date and time of the Rate Hearing. Dr. Zimbelman said that staff will be discussing with the Board the current rate structure. Based upon these discussions, a change in the rate structure will be considered by the Board. Director Wright moved approval of the notice as submitted. The motion was seconded by Director Brown and passed unanimously. X. SOUTHERN WATER SUPPLY PROJECT UPDATE President Applegate asked Dr. Zimbelman to report on the Southern Water Supply Project (SWSP). After brief, introductory comments, Dr. Zimbelman turned the discussion over to Mr. Carl Brouwer, Senior Water Resources Engineer, who referred the Board to the monthly construction report that had been distributed containing information relating to the present status of the project. The Morgan Pipeline portion of the project is nearing completion, with approximately 1.5 miles remaining of 46 total miles for the pipeline. Mr. Brouwer anticipates that crews will complete this work, valve installations, and pipeline tests during the next four weeks, and the pipeline should be operational by mid -August. Crews have currently tested the pipeline as far as Weld County Road 386. Mr. Brouwer stated that the pipe installation crew has averaged 1,200 linear feet (LF) ofpipe per day in June, with a total projection of over 28,000 LF for the month. He reported that total change orders are well below budget estimates, and the overall project is on time and under budget. Mr. Brouwer concluded the Morgan Pipeline discussion by stating that the District may need to construct a gravel base for access roads in several areas due to sandy soil conditions. He estimated the cost at approximately $15,000 per mile, which should be adequately covered under the current project budget. Mr. Brouwer then responded to several questions from the Board regarding road construction and the application of cathodic protection to the Morgan Pipeline. Mr. Brouwer then addressed the subject of adding capacity to the SWSP pipeline. At a SWSP participant meeting in late June, the cities of Broomfield and Erie both requested additional capacity by 2001. Mr. Brouwer stated that both Broomfield and Erie have immediate need for more water, while other participants' will require additional capacity in 10 to 15 years. SWSP participants have scheduled a second meeting in August. Mr. Brouwer answered questions posed by the Board, and a general discussion ensued regarding the need for a second pipeline, strategies to use the current pipeline more efficiently, and the possibility of terminal storage for SWSP water. Several Directors questioned the need for a second pipeline so soon after construction of the first pipeline. Mr. Page 6 District Minutes July 9, 1999 Brouwer assured the Board it was not the result of poor planning, but the effect of unanticipated, unprecedented population growth in the SWSP service area. Broomfield was reluctant to add capacity during the design of the first phase for the pipeline due to federal finding sources, requirements, and restraints. He added that Erie's population has doubled in just a few years' time. Following the discussion, President Applegate thanked Dr. Zimbelman and Mr. Brouwer for their reports. XI. FACILITIES TRANSFER UPDATE Mr. Wilkinson began by updating the Board on the subject of facilities transfers. The District continues to work with Reclamation on the transfer of title to the Charles Hansen Supply Canal, the Windsor Extension of the Charles Hansen Supply Canal, the Ed Munroe Gravity Canal, and the Dixon Feeder Canal. District responsibilities include developing proposed legislative language for Congressional authorization for the transfer. District staff is working with Reclamation to accomplish this and has sent letters to Colorado's Congressional delegation, the City of Greeley, and the City of Fort Collins seeking support for the transfer. The District's legal counsel has made several contacts in Washington D.C. regarding the transfer as well. Mr. Raley stated he has discussed the transfer with Interior Department officials, and that he remains optimistic. District staff and legal counsel are also working on a purpose and needs statement for the proposed transfer. USBR officials are responsible for producing a memorandum of agreement (MOA) for the title transfer, and Reclamation will be responsible for any archeological investigations ofthe transferred lands required for National Environmental Policy Act (NEPA) compliance. All of these items will be reviewed with Reclamation officials at a meeting on July 23, 1999. XII. PLEASANT VALLEY PIPELINE Mr. Wilkinson then turned to a discussion of the Pleasant Valley Pipeline. He informed the Board that the project continues to move forward, and that the next significant step will be Board consideration of a contract for the design phase of the pipeline. Mr. Wilkinson stated that Mr. Jeff Drager, Senior Water Resources Engineer, and representatives from ERO Resources Corporation have walked the pipeline alignment to identify any environmental issues that may need to be addressed including the Preble's Meadow Jumping Mouse (PMJM), the Ute Ladies' Trusses Orchid, and other species that may be impacted by the pipeline. Mr. Wilkinson reported that the District has obtained nearly all of the necessary access agreements to allow the investigation of the pipeline alignment to proceed. Only three out of the approximately forty access agreements require finalization. District staff and representatives from the City of Fort Collins are currently walking the alignment to identify the existing infrastructure along the proposed alignment, including Fort Collins' existing pipeline right-of-way. Mr. Wilkinson then turned the discussion over to Mr. Trout, who referred the Board to the draft contract for design of the Pleasant Valley Pipeline found in the Board packet. Mr. Trout stated the contract was in standard format with no unusual features, that he reviewed it thoroughly, and he Page 7 District Minutes July 9, 1999 recommended Board approval of the proposed contract. Following a brief discussion, Director Wright moved to approve the Consulting Services Agreement for Design of the Pleasant Valley Pipeline with CH2MHill. The motion was seconded by Vice President Brunner and passed unanimously. Mr. Trout then directed the Board to the matter of a contract for environmental services. Mr. Trout presented the ERO Resources Corporation Contract, pointing out that it was designed to allow for a series of task orders to be issued by the District to complete the required environmental analyses. Following brief discussion, Director Brown moved to approve the Contract for environmental services with ERO Resources Corporation. The motion was seconded by Director Wright and passed unanimously. XIII. PLATTE RIVER RECOVERY PROGRAM President Applegate next asked Mr. Alan Berryman, Head, Engineering Services Branch, for an update on the Platte River Recovery Program. Mr. Berryman reminded the Board that Mr. Doug Robotham, who represented the State of Colorado in the Platte River efforts for nearly five years, has left the Department of Natural Resources to become the Executive Director for Colorado for the Trust for Public Lands. Mr. Peter Evans or Mr. Kent Holsinger will replace Mr. Robotham on the Governance Committee representing the State of Colorado. In a related matter, Mr. Berryman announced that he expects the vacant position pertaining to Colorado's efforts on the Platte River Recovery Program on the Colorado Water Conservation Board (CWCB) staff to be filled in the near future. Mr. Ber yman reported that Boyle Engineering continues its work to identify potential alternatives for developing 60,000 to 80,000 acre feet of water within the Platte River basin in order to meet the overall goal for the first increment of 130,000 to 150,000 acre feet of reduction in shortages in the critical habitat in central Nebraska. The next step will be the development of an action plan. During negotiations over the next few months, several critical issues will be discussed, among them: (1) The program to develop 60,000 to 80,000 acre feet of water for the critical habitat is meant to be an incentive -based program. Nebraska and Wyoming have commented that some water components should be pursued in each state, regardless of costs and the associated efficiencies of providing that water; (2) The South Platte River Compact and the protection of Colorado's rights under the Cooperative Agreement and the South Platte River Compact; (3) Competition within the State of Colorado to develop water to meet the goals of the Platte River Recovery Program. Mr. Berryman concluded his remarks, and Mr. Wilkinson stated that the continuity of Colorado's efforts associated with the Cooperative Agreement and the Recovery Program has been interrupted Page 8 District Minutes July 9, 1999 because of the change in administration, but that the situation should improve with the new appointments. A number of comments from the Board followed. Director Brown stated the CWCB will be hosting several regional meetings on water issues throughout the state and that he will keep the rest of the Board posted on these meetings. Director Caneva asked about the relative costs of providing water versus money for the Recovery Program. Mr. Berryman replied that cash is typically a more effective method of enhancing species habitat. Mr. Raley added that Colorado will deliver water to Nebraska to fulfill compact requirements, but that the state would not do so to enhance endangered species habitat. XIV. LEGAL MATTERS Regarding litigation, Mr. Raley reported that counsel has negotiated an agreement with the City of Thornton under which Thornton will stipulate to entry of decrees granting the District's diligence applications for its water rights on the Big Thompson River and Cache la Poudre River in return for the District's stipulating to entry of a decree in Thornton's Case No. 91CW126, which is an application on the South Platte River to adjudicate water storage rights for gravel pit reservoirs. The District's diligence decrees should be signed soon. Regarding legislation, Mr. Raley stated that the proposal to designate a large portion of Rocky Mountain National Park as wilderness will be closely monitored. Representative Diana DeGette's wilderness bill has achieved some limited support locally, but Mr. Raley believes it has little chance of adoption or passage. Finally, Mr. Raley noted that there will be an Endangered Species Field Hearing in Greeley on July 24, 1999. XV. OTHER MATTERS President Applegate thanked Mr. Raley for his report and then opened the meeting for discussion of other matters. Mr. Wilkinson asked the Board for feedback regarding the joint tour of the C-BT Project facilities with the Colorado River Water Conservation District (CRWCD) on June 23-24, 1999. A short discussion of the tour ensued. Mr. Wilkinson thanked the Board for their comments and suggestions. XVI. EXECUTIVE SESSION President Applegate asked for a motion for the District Board to convene in Executive Session to discuss contract negotiations. The motion was duly made and passed unanimously, whereupon the District Board convened in Executive Session. President Applegate reconvened the District Board meeting. There was no action taken by the Board during Executive Session. There being no Ri ther business to come before the Board, President Applegate adjourned the meeting. 0 Page 9 District Minutes July 9, 1999 ADDITIONAL STAFF AND GUESTS IN ATTENDANCE JULY 9,1999 STAFF Alan Berryman Head, Engineering Services Branch Carl Brouwer Senior Water Resources Engineer Minerva G. Lee Head, Administrative Services Branch Dale Mitchell Head, Financial Services Branch Lori Ozzello Public Information Assistant Lynn Raveling General Superintendent, Operations and Maintenance Branch Gene Schleiger Agency Coordinator Greg Silkensen Staff Writer and Researcher Jerry Westbrook Head, Land and Water Contract Services Branch GUESTS Alice Johns U.S. Bureau of Reclamation Marti Morgan Senator Wayne Allard's Office Rob Nanfelt Representative Bob Schaffer's Office MUNICIPAL SUBDISTRICT, NORTHERN COLORADO WATER CONSERVANCY DISTRICT MINUTES OF BOARD MEETING HELD AT DISTRICT HEADQUARTERS BOARD ROOM July 9, 1999 I. CALL TO ORDER The meeting of the Board of Directors of the Municipal Subdistrict, Northern Colorado Water Conservancy District (Subdistrict), was called to order at 9 a.m. Present were President G. Raymond Joyce, Vice President Leslie J. Williams Jr., Directors Mike Applegate, William E. Bohlender, William H. Brown, Kenton H. Brunner, E. L. "John" Caneva, William Condon,_ Marjorie Knievel, Jerry D. Winters, Ruth Wright, and Director Emeritus W. D. Farr. Director George Jenik was absent. The following staff members were present: General Manager Eric W. Wilkinson, Associate General Manager and Chief Engineer Darell D. Zimbelman, and Legal Counsel Bob Trout and Bennett Raley. See the attached list for additional staff and guests in attendance. II. PUBLIC COMMENT ON NON -AGENDA ITEMS President Joyce asked for public comment on non -agenda items. There were no public comments. III. MINUTES OF JUNE 11,1999, BOARD MEETING President Joyce then asked for a review of the June 11, 1999, Board meeting minutes. Director Bohlender moved to approve the minutes as submitted. The motion was seconded by Director Winters and passed unanimously. IV. MINUTES OF JUNE 3,1999, PLANNING AND ACTION SESSION President Joyce then asked for a review of the June 3, 1999, Planning and Action Session minutes. Director Winters moved to approve the minutes as submitted. The motion was seconded by Director Brunner and passed unanimously. V. FINANCIAL MATTERS President Joyce asked Dr. Zimbelman to report on Financial matters. Dr. Zimbelman directed the Board's attention to the Treasurer's Report and reviewed statements concerning the transfers of funds, revenues, receipts, current disbursements, and total cash and reserves as of June 30, 1999. Dr. Zimbelman also briefly discussed cash flows and cash balances. Director Winters moved to approve the Treasurer's Report as submitted. The motion was seconded by Director Brown and passed unanimously. Page 2 Subdistrict Minutes July 9, 1999 President Joyce then asked Director Brunner for a report of the Finance Committee. Director Brunner, Chairman of the Finance Committee, referred to the list of disbursements for June 1999, which was provided to Board members prior to the meeting for their review. Following questions, Director Brunner moved to approve payment of the June disbursements as submitted. The motion was seconded by Director Knievel and passed unanimously. VI. INCLUSIONS President Joyce continued the meeting by asking for a presentation of the inclusions which were published for hearing before the Subdistrict Board of Directors. The petitioners are: City of Boulder Fire Department —Boulder County Jensen, Guy D.—Weld County Newton, Donald W.—Weld County Mr. Jerry Westbrook, Head, Land and Water Contract Services Branch, referred to the prepared inclusion map and briefly reviewed the inclusions. The petitions for inclusion meet established Board criteria. They have been advertised as required by law and can be recommended for approval by the Board. Vice President Williams moved approval of the petition for inclusion of the referenced land in Boulder County. The motion was seconded by Director Wright and passed unanimously. Director Brunner moved approval of the petitions for inclusion of the referenced lands in Weld County. The motion was seconded by Director Winters and passed unanimously. VII. WINDY GAP PARTICIPANTS' COMMITTEE President Joyce next asked for a summary of the Windy Gap Participants' Committee (Committee) meeting of June 30,1999. Dr. Zimbelman summarized the meeting and the major subjects discussed including: increasing utilization of Windy Gap Project water; amounts of annual Colorado -Big Thompson (C-BT) Project water rentals; the expanding demand for small amounts of augmentation water; criteria, potential, and demand for recapturing Windy Gap water for reuse; potential Windy Gap reuse water storage sites on the East Slope, including existing reservoirs and existing and future gravel pits; the use of Windy Gap Project water as an interim supply pending the development of the Poudre Project or the South Platte Water Conservation Project; and the needs of rural water districts for base water supplies. Finally, Dr. Zimbelman reported that the Windy Gap Participants' Committee will next meet on August 10,1999. Topics of discussion will include rental demands on C-BT water supplies, the current level of water demands and locations of water needed by small augmentation plans, and the potential storage sites for reuse water from the use of Windy Gap Project water. President Joyce asked for any additional comments. Mr. Greg White, Chairman ofthe Windy Gap Participants' Committee, remarked on the large amount of C-BT water currently being rented. He also suggested that the Board continue to explore various water storage options for the Windy Gap Project. Page 3 Subdistrict Minutes July 9, 1999 Mr. Wilkinson then continued by reviewing the June 3, 1999, Planning and Action Session meeting and describing the presentation by representatives of the Platte River Power Authority (PRPA) of an alternative proposal to the collateral water policy associated with the in -lieu delivery of C-BT water during the year immediately following a spill of Lake Granby. Subdistrict staff and legal counsel agreed to investigate the PRPA proposal and to finther discuss it with the Board. At the June 30, 1999, meeting, Windy Gap Participants discussed a working document to transform the PRPA proposal into an implementable policy. Mr. Wilkinson reported it was the consensus of Windy Gap Participants that, if possible within the constraints of the Integrated Operations Policy, the proposal presented by the PRPA representatives on June 3 be adopted and implemented only in the 12 to 14 months following a spill at Lake Granby. President Joyce asked if there were any comments. A lengthy discussion ensued. After careful deliberation by the Board, Director Brown moved to table the issue to allow further discussion. The motion was seconded by Director Winters and passed unanimously. Director Emeritus W.D. Farr reminded the Board that it represented both the Northern Colorado Water Conservancy District (District) and the Subdistrict in implementing the Integrated Operations Policy. Mr. Farr emphasized the need for some "give and take" on this issue, and the chance of encountering severe difficulties with the proposal were fairly remote. Mr. Wilkinson stated that PRPA hoped the Board would consider and make a decision regarding the proposal as soon as practical. However, Mr. Wilkinson told PRPA representatives it would take some time for the Board to make a decision. Mr. White stated that he was comfortable with current progress on the issue. VIII. WINDY GAP PIPELINE INVESTIGATION President Joyce then asked Dr. Zimbelman for an update on the Windy Gap pipeline investigation. Dr. Zimbelman briefly reviewed the pipeline's construction history and discussed the current status of the pipeline investigation. The Subdistrict has retained an expert consultant to help assess the overall condition of the pipeline. Mr. Randall R. Parks is an engineer with Integra Engineering and has more than 20 years of experience investigating the type of pipe used in the Windy Gap pipeline and many other water projects. Subdistrict staff has been working with Mr. Parks on a Scope of Work to evaluate the present condition of the pipeline and recommend future actions necessary to preserve and prolong the service life ofthe pipeline. Dr. Zimbelman summarized the Scope of Work for the Board, which is divided into three phases: Phase P The initial phase will focus on data collection and determination of the corrosion potential of the metal components in the prestressed concrete pipeline, including the relative corrosivity ofthe environment surrounding the pipeline, the state ofthe existing pipeline, and areas to be more carefully examined during Phase III of the work plan —if Phase III is found to be necessary. Page 4 Subdistrict Minutes July 9, 1999 Phase IT The objective of this phase will be to determine the integrity of the metal wire used to pre -stress the pipeline, to look for evidence of structural distress in the concrete pipe, and to determine areas to be examined further in Phase III —if Phase III is found to be necessary. Phase III.• The goal of the final phase will be to ascertain the nature of potential problem areas identified during the first two phases; determine if the pre -stress wire, at wire break locations, manifest properties that differs from that tested in Phase I; draw conclusions on the overall condition and expected service life of the pipeline; and make recommendations for future actions needed to extend or maintain the service life of the pipeline. Dr. Zimbelman reported that Subdistrict staff estimates the total cost for the study at $200,000. The Subdistrict's FYI 999 budget includes $60,000 for Phase I of the study, while an additional $140,000 for Phases II and III will be included in the FY2000 budget. Dr. Zimbelman's report was followed by a general discussion of the techniques used to test the integrity of the pipeline. Director Applegate stated that any analysis of the pipeline's steel wire or prestressed concrete should meet any applicable specifications for such testing or analysis. Mr. Trout stated that the contract for the study will include a provision that any testing or investigations will meet standards set by the pipe manufacturer or by the industry, if such standards actually exist. After further discussion, Director Applegate moved approval of the Consulting Services Agreement between the Subdistrict and Integra Engineering. The motion was seconded by Director Brunner and passed unanimously. IX. COLORADO RIVER RECOVERY PROGRAM President Joyce next requested an update on the Colorado River Recovery Program (Recovery Program). Mr. Wilkinson reported on current activities associated with the U. S. Fish and Wildlife Service's (USFWS) preliminary draft Programmatic Biological Opinion (PBO). He summarized a meeting held in Glenwood Springs on July 8, 1999, where water users reviewed and discussed the content of the revised draft preliminary PBO. Mr. Wilkinson stated that District and Subdistrict staff, as well as some other water users, continue to have some concerns with the preliminary draft PBO. The take provisions and the language on take, including incidental take, proposed by the Subdistrict's legal counsel have not yet been adopted by the USFWS as part of the preliminary draft PBO. This will be discussed further with USFWS officials at a joint meeting on July 19, 1999. Second, the U.S. Bureau of Reclamation (Reclamation) has proposed classifying all Round II Ruedi Reservoir contract water sales as Category I depletions, which is an issue of contention for the Subdistrict. Mr. Raley stated this will be a major issue during any upcoming negotiations if this is not changed. Third, the preliminary draft PBO must include language that the provision of the permanent 10,825 acre feet by the water users for the Recovery Program is a requirement, that if not met, will require that consultation on all depletions will be reopened. Mr. Wilkinson listed additional areas of concern to be raised with USFWS officials regarding the draft PBO including: flow recommendations; treatment ofchanged water rights; water quality; issues Page 5 Subdistrict Minutes July 9, 1999 in the Gunnison and Yampa basins; recovery agreements; incidental take language; resolution of various Reclamation issues; and minimizing the impact of future water projects by working with the USFWS. Mr. Wilkinson concluded his remarks with some degree of optimism. He believes the issues are narrowing and that the parties will eventually reach a consensus. President Joyce asked for comments and questions. Mr. Raley stated that without the long-term source of funding currently being sought through congressional legislation, the program is likely to fail. He reported that legislation authorizing federal funding for capital projects necessary to implement the measures contained in the Recovery Program and required by the PBO has been introduced in the U.S. House. Mr. Raley and Mr. Wilkinson also briefly discussed the issues surrounding the interim use of Williams Fork Reservoir to provide the eastern slope water users' 50 percent share of the required permanent 10,825 acre feet. These issues included reimbursing Denver Water for power revenues, if any, that may be lost by providing this water and Climax Mining's objection to the use of Williams Fork Reservoir for the release of the East Slope's share of the 10,825 acre feet. X. BUREAU OF LAND MANAGEMENT/USFS LAND EXCHANGE UPDATE Mr. Westbrook continued with a discussion of the proposed Subdistrict land exchange with the USFS. An Environmental Assessment (EA) of the land exchange is currently ongoing. Mr. Westbrook reviewed for the Board the issues associated with the April 1999 scoping letter from the USFS and public comments on the proposed land exchange. The public comments largely focused on the proposed Jasper Reservoir and the belief that a permanent easement on USFS land would somehow facilitate construction of the reservoir. A letter responding to the public comments was sent it to Mr. Rich Phelps, Sulphur District Ranger for the Arapaho National Forest on June 29, 1999. The feedback from USFS officials has been positive. Mr. Westbrook stated that Mr. Phelps appreciated the letter very much and stated that in his opinion the proposed land exchange and the proposed Jasper Reservoir were not related in terms of the EA. Regarding progress on the EA, USFS officials informed Mr. Westbrook that they will send a draft copy to the Subdistrict for staff review in the near future. XI. WHIRLING DISEASE Mr. Wilkinson next reported on the alternatives being investigated to address Whirling Disease on the Colorado River at the Windy Gap Reservoir. The Subdistrict's engineering staffcontinues to look at the construction of a channel that would pass the Colorado River around the south side of the Windy Gap Reservoir. Mr. Wilkinson related to the Board a phone conversation he recently had with Mr. David Nickum of Trout Unlimited (TU). It is possible the Subdistrict may be able to secure funding from TU and other sources for design and construction of a Colorado River bypass channel if it is agreed the project should move forward. According to Mr. Nickum, several federal programs provide funding to improve fish habitat and may be available. However, Mr. Wilkinson made it clear to Mr. Nickum that the Subdistrict would oppose funding from any federal program if it would affect the Subdistrict's operation ofthe Windy Gap Project. TU continues to investigate funding and project Page 6 Subdistrict Minutes July 9, 1999 options, and Subdistrict staff will meet with TU and the Colorado Division of Wildlife after mid - August. Mr. Wilkinson stated that while the Subdistrict has not found a fatal flaw in the alternative being investigated, it will not be easy to design or construct a diversion structure and bypass channel at Windy Gap Reservoir. XII. LEGAL MATTERS President Joyce then asked for a discussion of legal matters. Mr. Raley reported on the status of litigation. The Water Court found diligence in three oil shale diligence applications, Case No. 95CW201(OXY USA), Case No. 95CW211(Chevron); and Case No. 95CW234 (Getty). Regarding the Chevron application, oral argument was heard by the Colorado Supreme Court on June 1,1999, and counsel is awaiting a decision from the court. Mr. Raley stated that he had good news in the OXY USA case. OXY USA had filed a cross -appeal of the Water Courf s denial of its motion for summary judgement that the Subdistrict does not have the legal authority to file a Statement of Opposition in the case based on the Water Conservancy Act. The Southeastern Colorado Water Conservancy District filed an Amicus Brief in support of the Subdistrict's position in the OXY USA case. OXY USA's response to the Subdistrict's opening brief was filed on June 28,1999. The brief did not include any argument regarding the Subdistrict's authority to file a Statement of Opposition, indicating that OXY USA has abandoned that issue on appeal. Mr. Raley next discussed the potential for filing a Statement of Opposition on the application of Hassco Lands for water and storage rights in Case No. 99CW094, Water Division No. 5, on Crooked Creek, a tributary of the Fraser River. The issue at question in this application is the subordination of the Windy Gap Project to junior water storage rights for irrigation, domestic, and municipal purposes in the Fraser and Colorado River drainage areas upstream of Windy Gap Reservoir. Following discussion, Director Brown moved that the Subdistrict file a Statement of Opposition as discussed. The motion was seconded by Director Wright and passed unanimously. Mr. Raley concluded his remarks by cautioning the Board that the issue of subordination of the Windy Gap Project to junior water rights for irrigation, domestic, and municipal purposes in the Fraser and Colorado River drainage areas upstream of Windy Gap Reservoir may need to be litigated in the future. A brief discussion of these issues followed. XIII. OTHER MATTERS President Joyce then asked for a discussion of other matters. There being none, he adjourned the meeting. Page 7 Subdistrict Minutes July 9, 1999 ADDITIONAL STAFF AND GUESTS IN ATTENDANCE JULY 9,1999 STAFF Minerva G. Lee Head, Administrative Services Branch Dale Mitchell Head, Financial Services Branch Lori Ozzello Public Information Assistant Lynn Raveling General Superintendent, Operations and Maintenance Branch Gene Schieiger Agency Coordinator Greg Silkensen Staff Writer and Researcher Jerry Westbrook Head, Land and Water Contract Services Branch GUESTS Alice Johns United States Bureau of Reclamation Marti Morgan Senator Wayne Allard's Office Rob Nanfelt Representative Bob Schaffer's Office Greg White Windy Gap Participants' Committee