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HomeMy WebLinkAboutWater Board - Minutes - 07/20/1984WATER BOARD MINUTES July 20, 1984 MEMBERS PRESENT Norm Evans, Henry Caulfield, Tom Moore, Ray Glabach, Tom Sanders, Dave Stewart, Bernie Cain, Mort Bittinger, John Scott (alt), Jim O'Brien (alt) STAFF PRESENT Mike Smith, Dennis Bode, Ben Alexander, Jim Hibbard, Curt Miller, Andy Pineda, Paul Eckman, Assistant City Attorney MEDIA Mark Radtke, KCOL MEMBERS ABSENT Neil Grigg, Mary Lou Smith (both excused) Vice Chairman Norm Evans opened the meeting. The following items were discussed: Introduction of Bill Carnahan Mike Smith introduced Bill Carnahan, the new Utilities General Manager, formerly the Director of the Light and Power Utility. He became the Utilities General Manager when Water Utilities and Light and Power were merged. Minutes The minutes of the June 15, 1984 meeting were approved. Election of Officers Vice Chairman Norm Evans asked for nominations for Water Board chairman. Henry Caulfield nominated Norm Evans. Tom Sanders seconded the nomination. The Vice Chairman asked if there were further nominations. There were none. Tom Moore moved that the nominations be closed and that a unanimous ballot be cast for Norm Evans. Dave Stewart provided a second. Norm Evans was elected chairman by a unanimous vote. Prior to nominations for vice chairman, Tom Moore asked for a clarification of the voting status of the alternates. Norm Evans explained that in the absence of a regular Board member, the alternate assumes that member's vote. Since two regular members of the Board were absent, both alternates were permitted to vote. Chairman Evans asked for nominations for vice chairman of the Water Board. Tom Sanders nominated Henry Caulfield with a second from Ray Glabach. Dr. Evans asked for further nominations. Again, there were none. Dave Stewart moved that the nominations be closed and that the Water Board cast a unanimous ballot for Henry Caulfield. After a second from Tom Moore, Henry Caulfield was elected unanimously to the office of vice chairman. r Water Board Minutes July 20, 1984 Page Two Halliqan Reservoir Norm Evans explained that the North Poudre Irrigation Co. has made an offer to the City regarding Halligan Reservoir. The staff had prepared a report on the Potential Enlargement of Halligan Reservoir which was distributed to Board members. The following is an excerpt from the report giving some background on the proposal: The president of North Poudre Irrigation Company (NPIC) recently met with City Staff regarding the City's interest in pursuing the enlargement of Halligan Reservoir. NPIC owns the reservoir and has from time to time expressed interest in enlarging it. Recent proposals to sell the adjacent land for a state park and other inquiries from private developers prompted NPIC to ask whether the City of Fort Collins may be interested in participating in the enlargement of the reservoir. The City owns about 10% of the stock in NPIC. Halligan Reservoir is located on the North Fork of the Cache La Poudre River, about nine miles northwest of Livermore. It has a capacity of 6428 acre feet. The existing dam is reportedly stable with the spillway about 90 feet above the streambed. The purpose of the report was to provide a preliminary analysis of the feasiblity of the City participating in the development of an enlarged Halligan Reservoir. Mike Smith said that the proposal from NPIC appears to be an opportunity that the City might want to consider. The possiblity of increasing the City's safe yield by 7800 acre feet at the price of $785 per acre foot is an opportunity that doesn't occur very frequently, Mr. Smith continued. Mike Smith and Dennis Bode, Water Resources Engineer, are enthusiastic about the possibilities. There are, of course, many questions that still need to be answered. Mr. Smith announced that there will be a breakfast meeting on Friday, July 27th at which the Water Board and the North Poudre Board will discuss Halligan and other common concerns. He encouraged Board members to attend. Dave Stewart asked how North Poudre feels about the City owning the Reservoir and giving them preferential rights. Mike Smith said that this is something we need to discuss with North Poudre. As yet, there has been little discussion with them. We are meeting with them on Friday to pursue these kinds of questions. Henry Caulfield is concerned about evaporation since Halligan is a reservoir where the water is stored for a long time and used infrequently. In the calculations of safe yield, have evaporation losses been taken into account? Dennis Bode answered that those losses were not taken into account. The accuracy of the inflow numbers are probably not great enough to make a lot of difference, he said. Plus, there is inflow during most years so evaporation would probably not have a great effect on it. Mr. Caulfield also asked about the cost of rental of water from farmers with good water rights in drought years as an alternative to having storage. Mr. Bode said that is one of the things that will be looked at as a part of the drought study. Water Board Minutes July 20, 1984 Page Three Mr. Caulfield's third question referred to the development of safe yield numbers and the unit costs. He asked if the staff used site B or site C. Site C was used but it was noted that there appears to be little difference between the sites. Mr. Caulfield explained that since site C goes into the canyon, how will this relate to the Judson property and their interest in moving this into a state recreation area? In other words, going from site B to site C could become an issue in the community. Mr. Bode responded that staff has not gone into any of those issues yet. Mr. Smith suggested Mr. Caulfield talk with the North Poudre people about this issue at the meeting. Quite apart from the question of transfer of ownership, what does North Poudre get out of this other than 6,000 acre feet of water from a safe dam? Is their yield 6,000 acre feet? These were two more of Mr. Caulfield's questions. Mr. Bode said 6,000 acre feet of reserve capacity was allocated to North Poudre but it does not represent their average annual yield from the reservoir. For the past several years it has been primarily left full. As far as Mr. Bode's calculations are concerned, there are no other pluses that North Poudre would receive. When Bernie Cain asked if A is the site of the existing dam, he was told it was. Ray Glabach asked if North Poudre was under pressure from the state to repair their spillway no matter what we do. Mike Smith said he believes they have been requested to make some repairs. The dam is okay, but the spillway may be a problem. If we don't do anything, must North Poudre do something to change their spillway, Mr. Glabach continued. Mr. Smith isn't certain that they are under orders to do so. Mr. Bode confirmed that there weren't any restrictions on them to store water. However, there have been some suggestions for things to be done. Tom Sanders asked if this was taken from the State Engineer's report, and if so, can Water Board members get a copy? It was from the Engineer's report and yes a copy can be obtained. Dr. Sanders commented that it would be good background information. Dr. Evans reiterated for the benefit of the new members that in perspective, the annual City demand deliveries are around 20,000 acre feet so the amount of water mentioned in this proposal is a fairly large fraction of that. Thus, it is a very attractive possibility. One of the uncertainties that may still come before us will be the prior rights on the Narrows Reservoir. The question was asked if there was any way of using that water directly, and the answer was not at this time. Mort Bittinger commented that it would be easier to trade for Horsetooth water. Mike Smith stated that there are good exchange possibilities. Dave Stewart remarked that this is "cheap water," and that he had heard that CBT water was selling for $800-$900. Tom Sanders asked why we aren't buying it at that price. He suggested that we put this question on the agenda for the next meeting. Mike Smith emphasized that CBT water is essential as a supply alternative. Ray Glabach commented that if we are talking about adding to our water supply, and we certainly are if we are considering the Halligan proposal, we ought to look at the alternatives. Do we want water in Halligan or do we want CBT water? Dave Stewart suggested that the advantage of the Halligan proposal is Water Board Minutes July 20, 1984 Page Four the development of new basin water and we are going to lose it if we don't start developing it. Mr. Caulfield suggested that in addition to putting this question on the agenda, that Mike Smith report on where the City stands on our reserves of money. We have been collecting money for this purpose and we need to be told what cash we have. Mike Smith said that we spent over $800,000 over a year ago on Meadow Creek, so what we have now isn't much. Moreover, it doesn't build up too quickly. Tom Sanders asked when the Anheuser-Busch money comes in. Mike Smith said that is one of the options under the water rights acquisition. He added that it looks like we are going to get mostly water from Busch and not much money. Most of the water will be CBT and North Poudre water. Tom Sanders also asked if Busch is going to buy the water themselves. Mr. Smith understands that they have acquired nearly 50% of what they need and it is all CBT and North Poudre water. Tom Sanders said he thought they weren't going to do that. "They said they were going to buy it through us so it would reduce the impact." Mr. Smith said that was an option. There was a previous agreement with the Mayor and the City Manager and the A-B people that if A-B encountered exceptionally low prices, they could make some options on it. Thus, they have taken some options on some water. "We predicted that from the beginning, now it's coming true isn't is. We were told the opposite at every meeting," responded Dr. Sanders. Since there were no further comments or questions about Halligan, Dr. Evans urged the members to attend the joint meeting on the 27th. Staff Reports A. (Report on Consultant Selection for Water Treatment Plant No. 2 Expansion) Mike Smith reported that during the consultant selection process, the list had been narrowed to four finalists: Black & Veatch, John Carollo Engineers, CH2M-Hill and J.M. Montgomery. The committee interviewed those firms and the result was that Black & Veatch and Carollo were very close; within two points on the point system. B & V had 135 points and Carollo had 133 points. The City Manager was given that information along with the stated committee's preference for B & V. However, since this was the largest contract the City has ever let, the City Manager felt there were some other factors involved in the selection and recommended to the City Council that John Carollo Engineers be hired. Following a period of some political discussion and controversy, the Council became involved. The Council considered the consultant selection problem this past week and voted 5 - 2 to negotiate with Black & Veatch. That is where we stand currently. Mr. Smith added that we should have the contract ready within the next month. We will take it to the Council on August 21. Water Board Minutes July 20, 1984 Page Five It was asked if the B & V proposal was higher in dollars than Carollo's. Mike Smith said that the proposed engineering costs were higher. Tom Sanders commented that he was glad that the engineering costs didn't go to the low bidder. "You've got to do it on the quality, etc.," he stressed. Mr. Smith related that this question had come up during the Council meeting. The point was made that selecting the low bidder isn't the way we hire engineers. We look for the one that is the most qualified. Dave Stewart asked how long it would take for design and construction. Mr. Smith estimated the design work would take about a year and the construction two years. We are somewhat behind schedule right now, he added. Mr. Stewart also asked about current treatment capacity and projected treatment capacity. Mr. Smith answered that we can treat 44 MGD with Plant 2 and about 13 MGD from Plant 1 with a total capacity of 57 MGD. We are treating in the low 40's right now. We are still under the projected line for capacity. With the new plant, another 20 MGD will be added which will raise the total capacity to 64 MGD with Plant 1 abandoned. Tom Sanders asked if we have a physical connection to the Loveland water system. The answer is no, but we currently have physical connections with Fort Collins -Loveland Water District, ELCO, and Greeley. Tom Moore asked if we plan for a complete abandonment of Plant No. 1. Mr. Smith said that is the present thought unless other ideas emerge on what to use the facility for. Tom Sanders asked about running Plant 1 just in the summer months. "One of the plans we have now is to use the tranmission lines for raw water transmission lines. The idea for summer use only was contemplated. Maybe it is a possibility in the future," Mr. Smith responded. Dave Stewart commented that if you don't run the plant for awhile, getting it "back up" would be a real problem with all those manual controls, etc. Mr. Smith said that we would obviously have to spend some money to get it into a condition where that could be done. There are some less expensive options. B. Progress Report on District Negotiations Mike Smith said that Norm Evans is a part of the Negotiations Committee which hasn't met for awhile. We have had agreements with the South District and North District for cooperative efforts. Those agreements usually go on a yearly basis; they have expired and the City attorneys and the District attorneys are redrafting those agreements trying to restructure them on a five year basis. They are concerned about the anti-trust provisions that must be addressed. They are attempting to draft language that everyone is comfortable with. They are getting close and should have another draft completed within a week or so. If all the staffs think it is acceptable, the District Boards, Norm Evans and the City Council will convene to look at it. A preliminary meeting will be held in August with the various districts and the City of Greeley on the regional water treatment plant concept that has been discussed within a time frame of 7 to 10 years. L Water Board Minutes July 20, 1984 Page Six C. Treated Water Summary The summaries were distributed to the Board. Dennis Bode briefly explained that in June we were slightly below projected use, while so far in July we are about 5% above the projected average because of the warm weather. Committee Reports Dave Stewart informed the Board that the rate study is progressing. The customer survey is completed. Currently, the survey results are being tabulated and the scenarios are being developed. They are also progressing with the revenue requirements. A public workshop is tentatively planned for August 15. The survey results will be available to the Water Board and staff prior to the public workshop. Norm Evans reported that whereas the Water Board had requested that a council member be assigned to the Drought Study Committee and the Rate Study Committee, as a liaison member, the Council decided they would prefer to deal with progress as a committee of the whole. Thus, they will meet with the Water Board for progress report . New Business Out -of -City Service Request Jim Hibbard spent a few minutes explaining, for the benefit of new members and the new Utilities General Manager, Bill Carnahan, the reason for the out -of - City service request being brought to the Water Board. He explained that Water Utilities does serve water and sewer to many customers who are outside the City limits. By City ordinance, those customers' requests require approval from the Water Board, the Planning and Zoning Board and the City Council. "When we receive a request from a county resident for one of our services, we must bring it to the Water Board and through the other proper channels," he continued. Also, by ordinance, in exchange for providing these services, those County residents are required to sign an out -of -City service agreement which has provisions concerning the service, the major one being that if at sometime in the future, the City asks them to annex, they should do so voluntarily. The request before the Board today is for an out -of City sewer service which was brought about by the recent construction of the Dixon Creek Trunk Sewer. Of the residents who live on Moore Lane, there is a possibility of nine homes which physically would be able to connect with the sewer. The group that wishes to tap the sewer is being led by Daniel R. Durkee from whom the Department received the request. Water Utilities has no trouble serving these residents by capacity or physically being able to connect them into the sewer by gravity. What remains to be worked out is exactly how the sewer would be built and who would pay for it, as well as how the cost would be divided among the residents who desire to hook on. Mr. Durkee's letter addresses his request to be hooked to the sewer along with any of his neighbors who wish to participate in the financing of the extension that would need to be built to serve them. If the Water Board is comfortable with that type of request • • • Water Board Minutes July 20, 1984 Page Seven subject to suitable arrangements for them paying for the sewer and signing the normal out -of -city service agreement, and approval by Planning and Zoning and City Council, staff recommends approval. Henry Caulfield commented that this is property that will probably be annexed into the City eventually. He asked Mr. Hibbard if they receive their water from the Fort Collins -Loveland Water District. The anwswer was yes. Mr. Caulfield also asked if the City's cooperative arrangements are such that this situation is okay. Mr. Hibbard said they are. Mr. Hibbard added that these houses are currently on septic systems, some of which have failed. Because of this, there is a potential for a health hazard. Bernie Cain asked how much of a line would be constructed. Mr. Hibbard responded that it looks like about 400 feet of eight inch sewer coming off the trunk line would serve all of the existing properties. After a few other comments, Dave Stewart moved that the Board accept this out - of -City sewer request as per staff's recommendation. Following Bernie Cain's second, the Board approved the motion unanimously. Henry Caulfield asked what we intend to do about the buying price for water, since the Council expects the Water Board to review this periodically. Dennis Bode said that staff would look at some larger blocks and place this item on next month's agenda. Tom Sanders asked if A-B will turn water shares over to the City. It is Mike Smith's understanding that A-B has options on a certain number of shares right now. They will turn that over to the City and what hasn't been acquired, the City will acquire. Moreover, A-B is turning over much more water per acre than the ordinance had previously required. The water becomes the property of the City as is the case with any other developer. Tom Sanders asked, hypothetically, if for some reason A-B should pull out and close their plant, what would happen to the 4200 acre feet of water. Mike Smith explained that it is the City's water; they have their name on it just like a certificate of credit. It can be sold to someone else if the City wishes, but they still own the water. If someone else buys that property their water right is paid up; it is tied with the land. Mike Smith asked how many wanted to go to the sludge farm. Most indicated that they wanted to go. Staff will set up a time and inform the Board. Norm Evans asked about the status of the farm. Mike Smith was happy to report that it was in full operation. A farmer is growing tarn and barley on 160 acres of the farm currently. Tom Sanders asked what happens to the crop. Mr. Smith said it is the farmer's crop. He pays a designated fee per acre for the use of the land. Tom Sanders also asked about a potential heavy metals problem. Mr. Smith assured the Board that monitoring is done on a regular basis and that a tight schedule is maintained. Water Board Minutes July 20, 1984 Page Eight The Board members then introduced themselves to the two new members. In turn, Jim O'Brien and John Scott, the new members, told the Board and staff a little about themselves. Since there was no further business, the meeting was adjourned at 4:35 p.m. Water Board Secretary