Loading...
HomeMy WebLinkAboutWater Board - Minutes - 08/10/1999MINUTES OF WINDY GAP PARTICIPANTS' COMMITTEE MEETING HELD AT MUNICIPAL SUBDISTRICT, NORTHERN COLORADO WATER CONSERVANCY DISTRICT, BOARD ROOM 1250 NORTH WILSON AVENUE, LOVELAND, COLORADO August 10, 1999 8:30 a.m. I. CALL TO ORDER The meeting was called to order by Chairman Greg White. Windy Gap Participants' Committee (Committee) members in attendance were: Greg Dewey representing the City of Loveland; Carol Ellinghouse representing the City of Boulder; Peggy Flaherty representing the City of Louisville; Mike Bartleson representing the City of Broomfield; Greg White representing the Town of Estes Park; Susan Smolnik and Beth Molenaar representing the City of Fort Collins; Ken Huson representing the City of Longmont; Bill Emslie representing Platte River Power Authority; and Ralph L. Toren and Roger McCoy representing Superior Metropolitan District No. 1. Staff members in attendance representing the Municipal Subdistrict, Northern Colorado Water Conservancy District (Subdistrict) were General Manager Eric W. Wilkinson, Associate General Manager Darell D. Zimbelman, and Legal Counsel Bob Trout. See the attached list for additional Subdistrict staff and guests in attendance. II. APPROVAL OF MINUTES Chairman White requested a discussion of the May 11, 1999, Committee minutes. There being no changes, Chairman White stated the minutes would stand approved as submitted. III. TREASURER'S REPORT Chairman White then asked for a presentation of the Subdistrict Treasurer's Report. Mr. Dale Mitchell, Head, Financial Services Branch, referred to the distributed Treasurer's Report, which included statements regarding cash receipts, disbursements, transfer of funds, cash balances, and reserve fund balances as of July 31, 1999. Mr. Mitchell highlighted the final insurance payment resulting from the Windy Gap Pump Plant flooding of $47,070.21. The total amount received from the insurance company for the flooding incident was approximately $27.7,000. Mr. Mitchell also reviewed the reserve fund balances. The Debt Service Fund has decreased as a result of a debt payment. Mr. Mitchell reviewed the cash balance and responded to questions on bills paid. Chairman White thanked Mr. Mitchell for the report and asked for a presentation of the Budget Report. IV. BUDGET REPORT Mr. Mitchell discussed the Budget Report for the Subdistrict for fiscal year (FY) 2000, highlighting graphs and information contained within the distributed budget summary report including: total Page 2 Windy Gap Minutes August 10, 1999 revenue; total non -debt expenditures; operation and maintenance expenses; administrative services expenses; and engineering services expenses. He stated there were no power costs billed during 1998, minimal power costs were incurred in 1999 because of the purchase of energy associated with the spinning of the Windy Gap Project pumps, and power costs are estimated for the FY2000 budget at $14 per acre foot. Mr. Mitchell also reviewed the changes made to the preliminary FY 1999 budget initially adopted by the Board of Directors in August 1998. Mr. Mitchell also reviewed the charges made by the Inter -District Service Fund and the contributions to that fund. Chairman White asked if there were any monies budgeted for studies on the proposed New Seaman Reservoir or the proposed Chimney Hollow Reservoir projects. Mr. Wilkinson stated the New Seaman Reservoir Project is considered to be a possible alternative to the Poudre Project and, therefore, is included in the District budget. With respect to continued studies toward the development of storage at Chimney Hollow, Mr. Wilkinson explained that it was staff s opinion that the studies now needed to be funded by those parties interested in participating in the construction of storage at the Chimney Hollow site. Mr. Bill Emslie asked Mr. Mitchell to further explain Carriage Contract costs. Mr. Mitchell stated Carriage Contract costs vary depending upon the location of the delivery point for the entity taking delivery of water. He then provided an example involving the Platte River Power Administration and how the Carriage Contract costs would be calculated. Mr. Mitchell stated FY 1998 Carriage Contract costs ranged from $43.92 to $47.50 per acre foot, including borrowing costs of $5.70 per acre foot. Following discussion, Chairman White asked for a motion to recommend to the Subdistrict Board of Directors the adoption of the year-end budget for FY 1999 and the preliminary Subdistrict Budget for FY 2000. The motion was made by Roger McCoy, seconded by Bill Emslie, and upon being put to a vote passed unanimously. Chairman White thanked Mr. Mitchell for his report and asked for a Windy Gap Update. V. WINDY GAP UPDATE Mr. Wilkinson began by reviewing the need for the Subdistrict to complete an evaluation of the structural integrity of prestressed concrete cylinder pipe used to construct the Windy Gap Pipeline. He further stated staff has contracted with Integra Engineering to assist in the evaluation. Mr. Wilkinson stated that Integra Engineering and staff will be inspecting the pipe at 12 different locations to observe the exterior of the pipe and to sample soils surrounding the pipe. Excavation of the sampling points will begin on August 23. Mr. Wilkinson also discussed the Windy Gap Plant fire and flood alarms. The alarms will report flooding and/or fire alarms activated by sensors in the Windy Gap Pumping Plant to the Farr Pumping Plant. Such alarms, if activated, will require resetting at the Windy Gap Plant after there has been an on -site evaluation of the plant's condition and a determination of the reason the alarm was activated. Mr. Wilkinson next discussed the Windy Gap Plant SCADA system stating that initial work on upgrading the system has begun. Additional work on the SCADA upgrades may be postponed due to other work that needs to be completed by available staff. Page 3 Windy Gap Minutes August 10, 1999 Mr. Wilkinson continued his report by stating there has been a much less than average demand for water from the C-BT Project and as such, there is very little unused storage capacity available within the C-BT system. He said there is a high probability of a spill at Granby in August or September of this year and that it is virtually certain that a spill from Lake Granby will occur following the 2000 runoff. Unless the weather patterns change drastically and it becomes very hot and dry, there may not even be a normal demand for C-BT Project water in August or September. In light of the spill from Granby in 1999 and the likelihood of a spill from Granby in 2000, Mr. Wilkinson discussed the integrated operations criteria for the Windy Gap and C-BT projects and the methods available for collateralizing in -lieu deliveries in order to comply with the requirement that those in -lieu deliveries not adversely impact C-BT Project operations or the C-BT Project allottees. In response to a question, Mr. Wilkinson stated that the District usually knows by July 1 of any year if the C-BT system is going to spill that year. Ms. Carol Ellinghouse asked if there was any flexibility on the Board's part to not collateralize the in -lieu deliveries. Mr. Wilkinson said that the integrated operations criteria requires that collateral be provided in the event of in -lieu deliveries to Windy Gap Project allottees. Chairman White thanked staff for their Windy Gap updates and asked for the Legal Report. VI. LEGAL REPORT Mr. Trout began with a discussion of the oil shale diligence cases. He said there has been no decision by the Colorado Supreme Court in the Chevron case. The remaining two oil shale cases, OXY USA and Getty, are still ongoing and have not been scheduled for oral argument before the Colorado Supreme Court. Mr. Trout next discussed the C-BT East Slope tributary decrees. Proposed decrees granting findings of reasonable diligence have been agreed to by the one objector, the City of Thornton, and submitted to the Water Court. Dr. Zimbelman informed the Committee that the C-BT Project captured 50,000 acre feet of Big Thompson River water in Horsetooth Reservoir during the 1999 runoff season. Mr. Trout said the Windy Gap land exchange with the U.S. Bureau of Land Management (BLM) and the U.S. Forest Service (Forest Service) is moving forward. The Subdistrict's contractor has drafted an Environmental Assessment (EA) and will forward the draft of the EA to the Forest Service in early September. The Forest Service may make a decision on the land exchange by the end of this year. He further stated there has been a delay in the analysis of the BLM land exchange by the BLM. It looks now like that analysis won't be complete until sometime in 2000. Mr. Trout continued by saying that a hearing was held August 9, 1999, by the Colorado Water Quality Control Commission to consider the tri-annual review of the water quality classifications for the Upper Colorado River, which includes C-BT Project collection facilities on the West Slope. He said no problems were encountered at the hearing. Page 4 Windy Gap Minutes August 10, 1999 In regard to the Pleasant Valley Pipeline, Mr. Trout stated legal counsel has been working on construction issues and the right of entry agreements with landowners. One or two condemnation cases are possible. The District is pursuing the transfer of single -purpose water conveyance facilities located north of Horsetooth Reservoir. This transfer will require Congressional approval and National Environmental Policy Act compliance. Mr. Trout reported the State Legislature is holding Interim Committee meetings. There is a possibility that some legislative bills addressing Amendment 1 issues may be introduced during the 2000legislative session. A legislative definition of "revenue" could result from proposed legislation. Mr Trout stated that a legislative definition of "revenue" would be beneficial to the Subdistrict in regard to budgeting issues. Mr. Trout continued by stating that the U.S. Fish and Wildlife Service (USFWS) has taken no further action on the proposed 4(d) Rule for the Preble's Meadow Jumping Mouse (Mouse). Currently, the only law governing activities that may affect the Mouse is Section 9 of the Endangered Species Act, which prohibits any "take" of the Mouse. In regard to the Windy Gap pipeline investigation, Mr. Trout stated the contractor of the pipeline has been located and is in business in Minnesota. He also stated the manufacturer of the pipe is still in business. He said the Subdistrict will need to look into the issue of the statute of limitations if corrective action is found to be necessary on the pipeline. Chairman White asked if the Subdistrict has notified the companies of the ongoing investigation. Mr. Trout stated the Subdistrict has considered notification and will look into the matter further. Chairman White thanked Mr. Trout for his report. VII. PRELIMINARY SUBDISTRICT AGENDA Chairman White asked for a discussion of the preliminary Subdistrict agenda. Dr. Zimbelman stated the Budget Report will be addressed at the Subdistrict meeting. The remainder of the items on the agenda are routine and straight -forward. VIII. ROUNDTABLE DISCUSSION Chairman White next requested a roundtable discussion. Dr. Zimbelman began with a report on the Colorado River Recovery Program (Recovery Program) stating that meetings continue to be held, but are moving along slowly. He said that Eric Wilkinson and Bennett Raley have met with U.S. Bureau of Reclamation (Reclamation) officials regarding the Programmatic Biological Opinion (PBO) and Reclamation obligations regarding the 10,825 acre feet of Recovery Program water. Dr. Zimbelman next updated the Committee on the status of the Platte River Recovery Program. He said there are no significant issues or actions at this time. Dr. Zimbelman stated meetings with Trout Unlimited and various fishing clubs on the Colorado River below Windy Gap are being scheduled to discuss constructing a bypass around Windy Gap • • • f Page 5 Windy Gap Minutes August 10, 1999 Reservoir in response to the Whirling Disease investigations. He stated those investigations have been completed and sufficient room does exist between the south dike and the railroad to construct an artificial channel around the Windy Gap Reservoir. The channel capacity is estimated to be between 500 and 1,000 cfs. Dr. Zimbelman further stated Trout Unlimited and the fishing clubs have offered to obtain funding for the construction of the bypass channel. Dr. Zimbelman then discussed a letter received by Eric Wilkinson from the Colorado River Water Conservation District regarding issues involving the District and its operational policies. There being no additional matters to be discussed, Chairman White adjourned the meeting. Page 6 Windy Gap Minutes August 10, 1999 ADDITIONAL STAFF AND GUESTS IN ATTENDANCE ON AUGUST 10, 1999 SUBDISTRICT STAFF Alan Berryman Head, Engineering Services Branch Don Carlson Senior Engineer, Environmental Affairs Dale Mitchell Head, Financial Services Branch Gene Schleiger Agency Coordinator GUESTS There were no guests in attendance.