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HomeMy WebLinkAboutWater Board - Minutes - 02/17/198940 0 • WATER BOARD MINUTES February 17, 1989 Members Present Henry Caulfield, President, Tom Sanders, Vice President, Neil Grigg, Tom Moore, Dave Stewart, Terry Podmore, Tim Dow, Mark Casey (alt.) Staff Rich Shannon, Mike Smith, Dennis Bode, Ben Alexander, Linda Burger, Terry Robinson, Wendy Williams, Curt Miller, Tom Gallier, Molly Nortier, Paul Eckman, Assistant City Attorney Guests John Bigham, Agency Coordinator, Northern Colorado Water Conservancy District Carl Houck and Harley Bryant, Black & Veatch Engineering Georgia Amiller, Colorado State University Collegian Members Absent MaryLou Smith, Ray Herrmann, Chester Watson (alt.) Ben Alexander, Water Production Manager, conducted a tour of the expanded Water Treatment Plant No. 2 from 2:30 to 3:30. President Henry Caulfield opened the meeting shortly after 3:30 p.m. The following items were discussed: Minutes The minutes of January 20, 1989, were approved as distributed. Capacity Optimization Study - Water Treatment Plant No 2 A memo from the Engineering Committee recommended that the Utility proceed with the design and construction of the necessary facilities at WTP No. 2 to increase the capacity of the plant from 64 mgd to 74 mgd, as outlined in the Black & Veatch study distributed to Board members. The study to determine the feasibility of modifying various treatment and facility components at WTP No. 2 in order to increase the plant capacity, began in June of 1988 and was completed in February of 1989. In addition to the recommendation of improvements necessary to increase the plant capacity 10 mgd, B&V also identified improvements which should be con- sidered in the near future. These improvements include chemical stabiliza- tion and coagulant chemical feed modifications, as well as support system modifications necessary to achieve optimum and efficient plant operation and maintain facility reliability. Additional study and evaluation of these improvements is necessary and will take place during the next 12 months. Water Board Minutes February 17, 1989 Page 2 Dave Stewart, the Engineering Committee chairman and Neil Grigg a committee member, agreed that the Engineering Committee received a very good briefing and they believe that "the City is getting high quality water for a very reasonable price." Mike Smith said that staff is looking for concurrence from the Board on these recommendations and to get a design contract signed by Black & Veatch, so work can begin on the 10 mgd expansion. The City Council has already given authorization to proceed with the design if everything looks okay, he added. Neil Grigg moved that the Water Board endorse the recommendation of the Engi- neering Committee that the contract be approved. Tom Sanders seconded the motion. He also had a question. "Is there anyone, for example Anheuser- Busch, helping to pay for this expansion?" A-B has already paid their plant investment fee, Mike Smith replied. They paid a portion of what it cost to do the last expansion based on their max day and they pay it on a monthly basis, he added. Carl Houck of Black & Veatch emphasized that there are some support system modifications that aren't being accomplished in the first phase, but they are very important support components of the treatment plant, and will be consid- ered in the near future. "I just don't want anyone to be surprised when this comes up later," he said. These were mentioned previously when the content of the memo was discussed. Mark Casey asked if the plant will be "maxed out" with the additional 10 mgd. "There is a possibility we could squeeze a little more out of the south train and the Poudre train, but we will be looking more closely at that this spring and summer," Mr. Smith responded. Carl Houck added that this increment to 74 mgd is as much as you can get from the north train. There is a potential to get a little more out of south train and the Poudre train; perhaps 5-7 mgd. If you are planning to expand any more than that, it will probably require a whole new complex, whether it is at the existing site or somewhere else, he concluded. Henry Caulfield mentioned that in past years there has been some talk about a new treatment plant further downstream from the old Poudre Canyon plant and possibly combining treatment with the Districts. He stressed that nothing has been decided. "These are just some floating ideas for the future." Tom Moore recalled that in March of last year, "along with what we could do to maximize the treatment plant capacity, the Board talked about a plan to look at reducing peak day watering." He didn't suggest the Board discuss it today, but he contends that reducing peaks should go along with a long term education program. Chairman Caulfield suggested that the item be placed on the agenda for another meeting. Update: Northern Colorado Water Conservancy District John Bigham thanked staff for allowing him to participate in the tour of the expanded plant. He said that there was nothing pressing at this time to report from the District. w Water Board Minutes • • February 17, 1989 Page 3 Mr. Caulfield pointed out the letter from Mike Smith to Larry Simpson which Board members had received in their packets. The purpose of the letter was to inform the Northern Colorado Water Conservancy District staff and the Board of Directors about the new water supply policy recently adopted by the Fort Collins City Council. Also included in the letter were some facts and figures regarding the City's present and future water supply and information concerning the issue of the District's CBT "transfer policy" and the City's future acquisition of CBT water. Mr. Caulfield asked for questions or comments. Neil Grigg stated that it was a very well written letter. Others agreed. Mike Smith said staff would keep the Board informed of any developments. Surolus Water Rental Rates Each year after the irrigation companies have established the annual assess- ment rates for their water, the Water Board recommends to the City Council the rental rates for the City's surplus water. Dennis Bode said staff would determine sometime in April just how much water is available to rent. Mr. Caulfield asked why people are willing to pay so much more than the assessment rate for Water Supply and Storage Company water. Mr. Bode replied that "it is probably because they have low assessments per acre foot for one thing, and there appears to be more demand for the type of water under their system." Tom Moore related that WSSC has 5 shares of their own on which they have set a rate of $2,000 for this year. "You might want to adjust the rates a little," he suggested. Mr. Bode did not think that we should necessarily set it according to their rates. On a per acre foot basis, it is fairly rea- sonable, he believes. He would suggest a more moderate increase if the mar- ket is really higher. Dr. Grigg wanted to know when we rent the water to someone at these dollars per share, do they pay that to us? Mr. Bode replied, "That's right." Do they also have to pay the assessment rate to the Ditch companies? "No, we pay the assessments," Mr. Bode responded. Neil Grigg asked if he understood correctly that the reason for higher rates on WSSC is that it is more acces- sible and there is more demand for it. "That's right," Mr. Bode replied. Dr. Grigg concluded that if staff believes the price is reasonable, he didn't see a need to change it. Neil Grigg moved that the surplus.rates be approved as recommended. Dave Stewart seconded the motion. Henry Caulfield emphasized that for years the policy has been that the market determines how the rates are set. "Perhaps we need to set aside some time at a meeting to discuss and become more comfortable with this philosophy," he suggested. Tom Moore is saying the market is higher. "Possibly," Mr. Moore clarified. "However, Dennis Bode probably has a better feel for that than I Water Board Minutes February 17, 1989 Page 4 do." Mr. Moore believes that it is better to rent all the water than end up being stuck with a few shares; better in terms of public relations, too," he added. Tim Dow asked if Mr. Bode could come back in a few months and adjust the rates if necessary. Mr. Bode replied that this is a recommendation to the Council. They set the rates. Mr. Caulfield suggested that the Board could pass this with the proviso that staff could continue to watch the market and adjust the rates as the market developed. Dave Stewart asserted that if we negotiate the contract now we aren't going to adjust the rate three months from now. "I think we ought to stick with the rate as it is, and if we miss the mark, we miss the mark," he insisted. "And make an adjustment next year," Mr. Moore added. "I'd certainly go along with that." The Board voted unanimously to adopt the following rental rates: Irrigation Company Proposed 1989 Rental Charge* NCWCD Water (CBT) $ 12.00/ac-ft North Poudre Irrigation Co. $ 75.00/share Water Supply and Storage Co. $ 1,500.00/share Pleasant Valley & Lake Canal Co. $ 70.00/share New Mercer Ditch Co. $ 300.00/share Lorimer County Canal No. 2 $ 150.00/share Arthur Irrigation Co. S 8.00/share * For late season rentals, rates may be adjusted to reflect the remaining yield or the prevalent market price of the water stock being rented. Staff Reports Treated Water Production Summary Mr. Caulfield pointed out that the summary provided figures from the full years of 1988 compared to 1987. "We are getting close to 30,000 acre feet a year, he stated. Committee Reports A decision on the Engineering Committee's report and recommendation on the optimization study was made earlier in the meeting. The Conservation and Public Education Committee will meet at 2:00 prior to the next Board meeting on March 24. Neil Grigg, chairman of the Water Supply Committee, reported that the Com- mittee met with staff on Jan. 2. They talked in general about how we are going to implement the Water Supply Policy which has been approved by the City Council. There will be actions emerging from time to time on that, he said, and there will be a report later. Water Board Minutes February 17, 1989 Page 5 Legislative and Finance Committee chairman Tim Dow reported that there are 2 or 3 bills that are of some interest. He suggested the Board defer discus- sing them in the interest of time. "We will report in a little more detail at the next meeting," he said. He pointed out a staff memo, prepared by Linda Burger, on some current bills. Dave Stewart asked about SB 181. Ms. Burger said that has been drastically amended and no longer proposes a transfer of the Water Quality Control program from the Dept. of Health to Natural Resources. Instead, it proposes a series of criteria that should be used for any kind of a decision when water rights and water quality may come into conflict. "We have been working with Sen. Norton and the Water Congress and other organizations to make some changes in that language," she said. She hasn't heard yet whether Sen. Nor- ton is willing to accept those changes. The changes narrow it down to where it only applies to decisions of the WQCC and not to any decision by any agency. Many of the changes in the language had to do with water rights rather than water quality. "We felt that the bill should be oriented towards what the Commission's role is when it is confronted with the water rights issues, as opposed to making rules that apply to water court or somebody else. It has not yet gone to committee," she concluded. airman Tom Sanders said the Committee will meet soon. Other Business Henry Caulfield explained that in the materials that were in the packet, there is a proposed 1988 Water Board Annual Report. He had two suggestions for change. "Basically, I think it's a very well written report represent- ing what the Water Board did last year," he began. In the past two years, since the City Council has required annual reports from all the City boards and Commissions, the Water Board has not officially approved their report. Mr. Caulfield believes the Water Board should review and approve it since it is the Board's report. The first change Mr. Caulfield suggested was on the cover page. He would like to put a period after, "John Scott was not re -appointed to an additional four year term," and delete the rest of the sentence. The second change was on the last page under Regional Water Quality meeting. Mr. Caulfield wants the record to show that the Board's intention for that meeting was merely to share water quality information about EPA and State regulations. Regionalization was not the intention of the meeting, so he would prefer that the last sentence be deleted. Tom Moore moved that the Water Board approve the report with those changes. Dave Stewart seconded the motion, and the Board voted unanimously to approve the motion. Following the regular Water Board business meeting, the chair called an exe- cutive session to discuss legal matters and potential water acquisitions. Water Board Minutes February 17, 1989 Page 6 The meeting was adjourned at 5:10 p.m. 7�''�y yle2�ct,,L Water Board Secretary