HomeMy WebLinkAboutWater Board - Minutes - 05/18/19844
MINUTES
Water Board
May 18, 1984
MEMBERS PRESENT Ward Fischer, Norm Evans, Ray Glabach, Dave Stewart, Neil
Grigg, Tom Sanders, Ev Richardson, Mary Lou Smith (alt),
Mort Bittinger (alt)
STAFF PRESENT Mike Smith, Dennis Bode, Curt Miller, Jim Hibbard, Andy
Pineda, Ben Alexander, Paul Eckman, Assistant City
Attorney
GUESTS Pat Graham, Consultant for Rate Study Survey
MEMBERS
ABSENT
Henry Caulfield, Tom
Moore,
Bernie Cain (all
excused)
Chairman
Ward
Fischer opened the meeting.
The
following items were discussed:
Minutes
Tom Sanders said that the specific areas he asked about in the Anheuser-Busch
agreement had not been covered in the minutes. He wishes the minutes to
reflect his remarks that included when, how, and under what circumstances the
water was to be acquired and the details of the timing and the financing of
it. Mike Smith said that the answers to these questions are not specific in
the agreement. However, the master agreement does speak to the different
sources of water that could be available. Another item Tom Sanders said was
not in the minutes was his request that Ward Fischer provide a statement
before he leaves the Board, that reflects where the Water Board has been and
where it is going. The minutes of April 20, 1984, were approved with the
additions suggested by Tom Sanders.
Discussion and Revision of Water Board Policies
At the last meeting the Board had hoped to discuss the Water Board policies
with a view to making certain that they were reflective of our present
philosophies, etc. In addition to whatever thoughts the Water Board had, the
Council did suggest at the recent joint meeting, some items that they think
should be included. With the exception of a metering item, Chairman Ward
Fischer asked the staff to redraft the policies incorporating the Council
suggestions. The reason the metering item should be excluded is that we are
currently in the process of a study on this matter. When the draft is ready,
the staff will bring the document back to the Board for review and approval.
Chairman Fischer perceived that another directive from the Council at the
joint meeting was that the Council would look to the Water Board to make sure
the rate and drought studies "go down the right road." Mr. Fischer got the
impresssion that the Council would like the Water Board's overview, perhaps
Water Board Minutes
Page Two
May 18, 1984
with Council members present. He proposed that the Water Board form
committees for each study and inform the Council of these committees. The
Committees will then work with or without Council members in the overseeing of
these studies. He appointed the following committee members: Rate Study --
Neil Grigg, Chairman, Tom Sanders and Ray Glabach. Drought Study--MaryLou
Smith, Chairman, Ev Richardson, Henry Caulfield, and Mort Bittinger. Norm
Evans will serve as ex-officio member of both committees.
Note: Ev Richardson wished the record to reflect that his son-in-law is
directly involved with the drought study. However, the committee and Dr.
Richardson will be looking at the study from a strictly technical point of
view.
Ev Richardson asked that the committees be given the right to seek additonal
resource participants at no cost to the City. The staff did not object to
this.
Neil Grigg inquired if these would be advisory committees. Mr. Fischer
said that they would act more in the role of steering committees.
Mike Smith said his perception of what the Council wanted was different from
Mr. Fischer's. He thinks it is the staff's responsibility to direct the
studies with input from the Council and the Water Board.
Mr. Fischer assured Mr. Smith that the steering committees would not interfere
with staff management functions. Mr. Fischer went on to explain that there
was some confusion relating to the rate study as to what was to be studied.
It is hoped that the committee would help the consensus process of the Council
and the Water Board to determine what would be studied, and thus aid the staff
in that sense.
Neil Grigg suggested a mode of working on the committees that would allow the
staff to steer the studies and serve as the contact for the consultants. The
roles of the Water Board and Council members that would be added to these sub-
committees would be to review the studies at a logical point. The committees
would have the responsibility to assess whether the studies were meeting the
needs of Board and the Council in terms of the overview, the policy level, and
the technical content. Mr. Grigg thought that this would be a comfortable
working arrangement.
MaryLou Smith agreed with one exception. She thought it might be necessary to
have the group meet with the staff early on before each set of consultants
does work, to determine if they are on the right track.
Norm Evans advised that the Board should refrain from getting into the
position of second guessing the staff decisions which are given to the
contractor. It is within the framework to make suggestions. Thus, it is the
committee's function to call attention and flag, not direct.
Water Board Minutes
Page Three
May 18, 1984
Mike Smith reiterated that we hired a consultant, we negotiated with a
consultant on that scope of work and contracted for that scope of work to be
done. The intention was, after the rate study was completed, that the Water
Board and staff would confer on developing a conservation program. They would
take into account the information from the rate study and see what the cost
and benefits were, based on the information. It seemed that the Council
wanted the consultants to do some of that work in the course of the study
which is a change in the scope of work. Mr. Smith said that we are going to
have to decide if we want to change the scope of work and what the cost will
be or stay with the original scope and provide input as that goes along.
Ev Richardson proposed that the committees could interact with the staff and
the consultants to set up some scenarios.
Mr. Smith thinks that setting up the scenarios we want the consultants to look
at may be a bit premature. We may want the consultant to do it, look at the
results and then direct him to do something different.
Ray Glabach pointed out that it is important for the Water Board, having
initated the studies in the first place, to have a second input. Mr. Glabach
is not certain that he would endorse some of the things that were mentioned at
the joint meeting. He would have some opinions on the kinds of things we
should study. Sometimes municipalities have consultants do studies that end
up resembling "the Denver phone book" in terms of volume as well as content.
He is concerned about the average person in the community who is not
technically oriented who reads about the study. He may think, "Now that Busch
is coming, the City is putting a meter on my house." Mr. Glabach added that
it is important to study the things that matter and make them concise and
understandable. He is concerned further about the "green lawn" concept in the
rate study. He stressed that Fort Collins is not an island. "Areas outside
Fort Collins aren't deserts because they are metered. We have a data base
that surrounds us. Let's ask questions of other cities. Let's implement some
simplified approaches that people can relate to!"
Mike Smith responded that many of Mr. Glabach's concerns are being addressed.
It is the consultant's intention to include most of Mr. Glabach's suggestions.
Ray Glabach's observations about the Board's input into the study will be
realized by Mr. Stewart's plan to return frequently to the Water Board and
Council for their review of the study. Mr. Smith added that, as a staff, they
are very aware of the need for Council and Water Board input, as long as the
staff is allowed to fulfill their function as directors of the studies.
Norm Evans, director of the Colorado Water Resources Research Institute
located at CSU, offered his organization's research as a resource. They have
done research related to rate and drought studies, he said. The results
are there to be used.
Mike Smith related that, as part of the Department's budget process each year,
the staff surveys other communities along the Front Range. "We need to see
where we stand with existing rates, as well as with proposed future rates."
Water Board Minutes
Page Four
May 18, 1984
Mr. Fischer emphasized that the Board has no intention of interfering with
staff functions. Nevertheless, the body that ultimately makes the
recommendation, in this case the Water Board, is the one that will be called
to task, not the consultant who did the study. Therefore, the Water Board has
a real interest, through the steering committees, in seeing that the study is
properly done. If the Board is involved in the studies, and can say these are
valid studies, then the Board can make its recommendation based on that.
Ev Richardson added that the committees have specific assignments which will
spread the work load around a little, and when they make their reports to the
full board, all aspects will have been studied more thoroughly.
Mary Lou Smith had three procedural questions: How does each of these
committees secure a member of the Council, and would these committees be
involved at the beginning or will they wait until the middle of the studies?
Also, will the staff contact the committees to tell them when they want their
input or will the committee contact the staff?
Ward Fischer said that he would contact Council members. Mike Smith replied
that they would rely on the consultants to ascertain the logical break points,
and inform the committees at those times. In addition, Dennis Bode will
distribute information to the committees that will outline the scope of work.
Mike Smith reminded the Board that the staff and Water Board had previously
established the scope of work and the limits which the Council approved. That
had been a few months ago so the Council and the Board may have forgotten some
of the direction and limitations of the studies.
Ward Fischer pointed out that he hopes the committee working on the rate study
will keep the following points in mind: Often the consultant relies heavily
on whatever the American Water Works Association developes as the cost of
service as the equitable way. To conclude that anything else is inequitable
is false. For example, the present City rates were adopted by the Water Board
because they thought, under those circumstances, the rates were equitable.
The Water Board should use its own judgement as to what is fair and equitable
for Fort Collins. Neil Grigg asked what was the point upon which the Water
Board based its decision on why the present rates are equitable as opposed to
a cost of service approach. Ward Fischer explained that, basically, the Board
thought turning on a tap in your home was worth more than putting the water on
your lawn for a number of reasons. You are guaranteed water from your tap
inside the house. They further felt that people who watered their vegetation
were serving those who observed the beauty of lawns and trees as well as the
owner. Therefore, the Board concluded that the homeowner didn't necessarily
have to pay the full cost. Of course, they took into account that if the City
went to water rationing, the first place the water would be restricted was
lawn irrigation. They looked at what it would take to keep a pleasingly green
lawn without waste and concluded that the rate should be cheap because it
benefits everyone. Beyond that, when it becomes wasteful, the cost goes way
up.
0 •
Water Board Minutes
Page Five
May 18, 1984
Mike Smith said that he doesn't see a conflict between what is called cost of
service now and what Ward Fischer is saying. "We don't get involved in rate
structures," he added. The cost of service concept says, basically, do the
residential, commerical and industrial customers pay their fair share? Ward
Fischer contends that there are different views about what is fair.
Neil Grigg explained that it appears what Mike Smith is referring to is the
methodology, whereas Ward Fischer is referring to the overall approach. In
essence, they are in agreement.
Tom Sanders recalled that the Board couldn't look at scenarios until both
studies are done. Mike Smith agreed that in making a conservation plan, both
studies should be completed.
Staff Reports
A. Out -of -City Service Request, Jim Hibbard
The Water Utilities staff received a request for out -of -City water and
sewer services for property at 2407 West Drake Rd. owned by Mrs. R. W.
Horton. Water Board members were given copies of Mrs. Horton's letter and
a map showing the location of the property. Sewer service is becoming
available with the Dixon Creek Trunk sewer and water service is available
from Drake Road. The staff recommended approval of the request in
accordance with standard City agreements and procedures. It was noted
that charges mentioned in Mrs. Horton's letter should be disregarded.
After discussion, Ev Richardson moved that the Water Board authorize water
and sewer service to this property subject to the normal criteria,
excluding the charges proposed in the letter. Tom Sanders seconded the
motion. The motion carried unanimously.
Dave Stewart raised two questions about the boundaries in general. Does
the urban growth boundary correspond with the City limits on the west side
of town? Shouldn't the 5200 foot limit for water service be the boundary?
The staff will ask the Planning Department about these questions and
return to the Water Board with the answers.
New Business
Tom Sanders said that, although the Board receives a treated water production
summary each month, he would like to be kept up on the number of new water
shares the City receives. Dennis Bode suggested looking at the summary in the
annual report which all Board members had received. Mr. Bode added that there
usually aren't many transactions in a year. Jim Hibbard's area keeps a record
of plant investment fees and in -lieu -of water rights.
t s
Water Board Minutes
Page Six
May 18, 1984
Neil Grigg suggested that staff could provide the Board with certain aspects
of the annual report near the end of the year. It would be a good way to
examine figures and could become a part of the "blue notebook."
Tom Sanders also proposed, in light of Ward Fischer's choosing not to renew
his application for Water Board, that the Board ask the City Council to make
an effort to appoint someone who has expertise in water law; preferably a
water lawyer. Because Ward Fischer is a renowned water lawyer, and has served
for over twenty years, the Board will be deprived of that expertise in the
furture.
Tom Sanders moved that the Water Board request from the City Council that one
of the new appointees to the Board be an attorney knowledgeable in water law
even if they must go out and seek one. Ev Richardson provided a second.
Ray Glabach concurred with Tom Sander's idea, but was also concerned about
continuity. Perhaps the alternative is to develop this expertise in the City
attorney's office if it doesn't already exist.
Ward Fischer acknowledged that Assistant City Attorney Paul Eckman is quite
knowledgeable in water matters as they affect the City. He also attends most
Water Board meetings. However, the motion is still appropriate --just as the
Board has qualified engineers, it would be helpful to have a person qualified
in water law as well.
Chairman Fischer called for a show of hands on the motion. It passed
unanimously.
The next step will be for Mr. Fischer to call the mayor and inform him of this
recommendation.
Norm Evans related that he is concerned about the survey questionnaire
associated with the rate study. Are we going to have sub -committee input
before the questionnaire gets used, he wanted to know. Mike Smith said that
we need input, but the committee needs to get together soon. Dave Stewart
also stressed the need for input as quickly as possible. Pat Graham
consultant for the survey, attended the meeting to answer questions. It was
suggested the Board offer comments for Ms. Graham then. However, most members
did not feel prepared to discuss the questionnaire until they had gone over it
more thoroughly. Thus, Pat Graham and Dave Stewart will meet with the sub-
committee on Monday at 2:00 in the Water Utilities Conference Room. Board
members other than those on the committee are welcome to make comments too.
Pat Graham gave an overview of the questionnaire. She suggested questions of
a general nature about the kind of information that would be useful to have,
not so much about the design of the questionnaire itself. Dave Stewart
explained the reason for the survey. The Water Board and City Council have
ideas about what the rate structure should take into account. The Water Board
feels lawns and trees are very important, he said. The reason for the
questionnaire is to ascertain our customer's feelings. The Council gets their
Water Board Minutes
Page Seven
May 18, 1984
input from very vocal people who are willing to get up at a Council meeting
and express their views. Most people don't feel comfortable testifying at
Council meetings. Hence, the questionnaire is a way of reaching those people.
Ev Richardson announced that beginning Monday, May 28, CSU will be hosting the
International Congress of Irrigation and Drainage. Fifty-five countries will
be represented including the USSR. Each country has its own commission on
irrigation and drainage. Dr. Richardson invited staff and Water Board members
who are interested, to attend any of the programs.
Since there was no further business, the meeting was adjourned at 4:25 p.m.
Water boarO Secretary