Loading...
HomeMy WebLinkAboutWater Board - Minutes - 11/18/19830 ! MINUTES Water Board November 18, 1983 MEMBERS PRESENT Ward Fischer, Norm Evans, Ray Glabach, Tom Sanders, Tom Moore, Ev Richardson, Dave Stewart, MaryLou Smith (alt.), Mort Bittinger (alt.) STAFF PRESENT Mike Smith, Roger Krempel, Dennis Bode, Andy Pineda, Paul Eckman, Assistant City Attorney, Carol Osborne, Assistant to the Public Works Director GUESTS Bill Hansen, David Prange (COPIRG - CSU) Chairman Ward Fischer opened the meeting. The following items were discussed: Minutes The minutes of October 21, 1983 were approved as submitted. taff and Water Board Committee on Rate Study and The Request for Proposals on the Water Rates Study and the Scope of Work for a Drought Study were prepared by the staff and the Engineering Committee of the Water Board and distributed at the meeting. Norm Evans, Chairman of the Engineering Committee prefaced the discussion with some remarks about the water meter issue. The City Council has stressed that a phased -in program for the installation of water meters may be a part of the expanded water conservation program. Thus, it is presumed that no study would be needed to determine whether or not metering is necessary at this time. Tom Moore asked if the installation of meters is now a final decision. He reminded the Board that the word "may" not "will" is in the phrase "may require the installation of meters, etc." from the Council resolution. Tom Sanders added that, in his view, the facts do not warrant going to meters and he does not think the public should assume that the Water Board favors metering at this time. Dr. Evans explained that the committee did not see the rate study as an indication of whether or not the City should begin a metering program. The Request for Proposals on the Water Rates Study was discussed next. Chairman Fischer proposed that the rate study investigate various approaches that would ensure the maintenance of a green environment; in other words, rates that would not unduly prohibit residents from watering their lawns and other vegetation. It has been the consensus of the Board in the past, he continued, that the rates should be structured to maintain the quality of life in Fort Collins. 0 0 Water Board Minutes Page Two November 18, 1983 Mort Bittinger asked if the proposal should not include something about the future. Norm Evans responded that the Committee desired that this study be very complete in the economic sense --that it identify all the costs. Roger Krempel strongly recommended that the existing rate structure be examined. The Board agreed that it would be both proper and logical to examine what exists before something else is contemplated. The examination of the existing rate structure should be prior to the analysis of other rate structures so that there is something with which to compare any suggested changes. Tom Sanders asked if it is the City's thought that the present rate structure is inequitable. Roger Krempel said, yes. Ev Richardson added that, in his view, it is thought by "the people" to be unfair in general. On the other hand, he said, many who work with water believe that it is fair. Ward Fischer explained that the buzz words in utility jargon are "cost of service." If cost of service is the test of fairness, our present rates are unfair, but that was not the test when the structure was adopted. MaryLou Smith expressed the view that the public does not perceive the rates to be unfair as much as they think that not metering is wasteful. The attached Request for Proposals for a Rate Study reflects the changes that were included following Board discussion. The Scope of Work for the Drought Study was the next agenda item. The staff and Engineering Committee submitted a Scope of Work Proposal for the Drought Study which the Board discussed at length. Dr. Evans related that the committee determined that this study will require contractors that have expertise in this area. Hence, the committee has recommended that it be a negotiated study with specially qualified experts at CSU. He also stated that the committee attempted to evolve a working definition of drought, but eventually decided that it was the contractor's responsibility to address that as an issue. There were only two proposed changes in the Scope of Work for the Drought Study. Under the background segment Ward Fischer suggested that the two words, "and prolonged" be inserted between "extreme" and "drought". This has been one of Henry Caulfield's ideas for years. Because he is in China, Mr. Fischer wanted to make certain that it was included. The second revision was No. 1 under Study Tasks. "and defining" was inserted between "determining" and "the" in the last sentence of the paragraph. This revised document is also attached. Ward Fisher proposed that, once the two documents are finalized, the Council be approached for an appropriation to accomplish the studies. Mike Smith said that the staff plans to take the proposals to a Council work session and following the Council's consideration of the proposals, the staff will attend a legislative session to try to get some money appropriated. The funds probably will come from Water Utility capital reserves. Ev Richardson informed the Board that he had spoken with the Vice President of Research at CSU. The Vice President agrees that drought would significantly affect CSU. Thus, he is willing that CSU make a contribution to the Study 0 Water Board Page Three November 18, Minutes 1983 in terms of decreasing the amount of indirect cost recovery and making the computer available at no cost. Dr. Richardson went on to suggest names of experts in this technical field who could aid in the research and direction. Mike Smith said that possibly the City could arrive at the best product at_the lowest cost with the University. Chairman Fischer asked Mike Smith to aid the Board by preparing a memo that would outline all the reasons which have been expressed at the meeting for negotiating the study with CSU. Mr. Smith agreed to do that but stressed that it would be very helpful to have correspondence from the University expressing interest in the study. Mike Smith plans to present the revised proposals to the City Council for their review at a work session on December 13th. The Board will then be able to take the Council's views into account at their meeting on December 16th. Commercial Raw Water Requirements At the September Water Board meeting Dennis Bode discussed the residential raw water requirements. For the past two months, the Joint Staff Study Committee from Fort Collins, East Larimer County Water District and Fort Collins - Loveland Water District has been working on the commercial raw water requirements. The Committee compiled the Interim Report on Commercial Raw Water Requirements and distributed it to the District -City Steering Committee and the members of the Water Board. Dennis Bode, the representative from the City of Fort Collins on the Joint Staff Study Committee, reviewed some of the background information from the report and explained the four alternatives. The primary goal, he said, is the same as with the residental raw water requirements, which is to arrive at some consistent requirements. One of the other objectives is to get more equity into how the raw water requirements are applied. Currently, the requirements are all different. The City's commercial requirements are based on area, the same as for residential development. Fort Collins -Loveland is based on tap size, and ELCO is based on tap size and surcharge. As the committee began the study, they first looked at water use. As expected, there were many variations. Mr. Bode addressed the benefits and the shortcomings of each of the alternatives which emerged from the committee's deliberations. He emphasized that these alternatives do not exhaust all of the options available, but they represent a wide range of concepts based on tap size. Mike Smith added that the Steering Committee from Fort Collins, and the Districts met this past week and spent a considerable time pondering the interim report, but eventually arrived at a consensus on the concept of one of the alternatives. A summary of the four alternatives follows: Alternative A Commercial customers would pay for raw water through the monthly pricing mechanism. Under such a scheme no raw water would be turned over "up front" but would be paid for based upon exactly what is used. Alternative B All customers within a given tap size would be required to turn over approximately 50% of water needed up -front. The remaining raw water rights would be recovered through a surcharge which would be applied to all water use (as metered) beyond the base supply turned over. Water Board Minute Page Four November 18, 1983 Alternative C Alternative C is a variation of Alternative B where the initial raw water requirement remains at approximately 50% of the water needed. However, the surcharge would be raised to a higher level such that the total water available from the initial RWR and that recovered through the surcharge would be close to 100% of the estimated use. Alternative D This alternate would require all users of a given tap size to turn over a specified amount of water which would be intended to cover all water used by the tap size group. No surcharge would be applied to any customer. The initial RWR would cover 100% of total use. After considerable discussion and some confusion, Ev Richardson moved that the Board approve in concept Alternative A unless there was a significant amount of water involved. Tom Moore seconded the motion. The members were polled and the motion failed 4-5. Dave Stewart offered a second motion that the Board approve, in concept, Alternative C as revised and promoted by the Steering Committee: In summary, the concept conveys that approximately 80% of the water would be turned in "up front" and there would be a surcharge above some specified amount such that the total amount would be enough to meet the needs. Ev Richardson provided a second. After further discussion, this motion passed with one dissenting vote cast by Tom Moore. Mike Smith related that the next step would be to take the interim report with the Water Board's recommendation to a group of developers for review. Staff Reports A. Treated Water Summary Dennis Bode noted that during the last three months, it has been comparatively dry and the City's use has been above average. Other Business Tom Sanders asked about the pilot study water quality results at Water Treatment Plant No. 1. Mike Smith answered that they are not yet available, but should be soon. Mike Smith announced that the City is in the process of evaluating another site for the new water treatment plant which may prove to be more satisfactory then the other potential site. It is south of the river, just southwest of the Greeley plant on the side of the hill. The Board will be kept informed of any major developments. Since there was no further business, the meeting was adjourned at 4:45 p.m. water Board Secretary