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HomeMy WebLinkAboutWater Board - Minutes - 10/21/1988r WATER BOARD MINUTES October 21, 1988 Members Present Henry Caulfield, President, Tom Sanders, Vice President, Jim Kuiken, Tom Moore, Marylou Smith, Terry Podmore, Chester Watson (alt.) Mark Casey (alt.) Staff Rich Shannon, Mike Smith, Dennis Bode, Wendy Williams, Molly Nortier Guest Darell Zimbleman, Associate General Manager, Northern Colorado Water Conservancy District Members Absent Neil Grigg, Ray Herrmann, Dave Stewart, Tim Dow President Henry Caulfield opened the meeting. The following items were dis- cussed: Minutes Mr. Caulfield reported that staff would like the Board to consider the ade- quacy of the action they took on the Water Supply document at the last meet- ing. Mike Smith referred to p. 10 of the minutes where it stated: "Tom Sanders moved that the Water Board accept the Water Supply Policy Committee's report and recommend to City Council the adoption of the recommendations con- tained in the report." Mr. Smith related that there were two parts of the document; one was the water supply elements and the other part the recommendations of the Committee which the Board acted on. Staff wanted to make certain, for the record, that the Board also approved the water supply policy elements. MaryLou Smith made it clear that these were the elements drawn from the ori- ginal Water Supply Policy Report that was presented to Council about a year ago. Tom Sanders moved that the Board accept the report including the revised Water Supply Policy elements which are a summary of what has been carried over through the years, and also recommend that City Council adopt the Com- mittee's recommendations and the revised Water Supply Policy elements. MaryLou Smith seconded the motion. The motion passed unanimously. There were no further corrections or additions. The minutes of September 16, 1988 were approved as amended. Water Board Minutes October 21, 1988 Page 2 Northern Colorado Water Conservancy District - Update Darell Zimbleman announced that the Northern District will be hosting its annual fall water users meeting on Friday, November 18 at the University Park Holiday Inn in Fort Collins. Registration begins at 8:15 a.m. Water Board members received copies of the letter announcing the meeting with an agenda attached. This year's meeting features a talk by Governor Romer who will discuss statewide water issues and how they affect Northern Colorado planning efforts. In addition, State Senator Tom Norton will discuss water issues from a legislative perspective. Mr. Zimbleman reported that an issue has emerged on the CBT water relating to Fort Collins. It appears that Fort Collins is nearing the limit on the num- ber of CBT units it can purchase. Mike Smith has asked to meet with Larry Simpson about this issue, and the District is in the process of scheduling that meeting. Mr. Caulfield recalled that when Larry Simpson met with the Water Board recently, there was some discussion about that issue. "The key point that I heard was that if we plan looking toward the future, and current actions are consistent with a long range plan, that would be influential with the Dis- trict Board," Mr. Caulfield stated. Mr. Zimbleman thinks that it may be as simple as perhaps presenting something in writing from Fort Collins to the Board, or having Mike Smith attend a District Board meeting to clarify Fort Collins' position. Mr. Zimbleman announced that there will be a meeting on November 4 with the Windy Gap Committee to discuss the potential for leasing Windy Gap water. Unfortunately, at this point, Denver doesn't appear to be "in a talking mood about leasing," he said. Nobody else seems to be interested in leasing either, he added. The other issue that is coming up is the Carriage Contract that was developed for the Windy Gap project and was negotiated at a time before the project was finalized in its concept and design. It doesn't recognize the fact that the District has taken over much of the operation and maintenance of the Western Slope facilities. The Carriage Contract will reflect those changes. "In reality, by keeping it revenue neutral, and cleaning it up (so to speak) to reflect the current situation, and not change the dollars, we can do it at a local level," he stressed. "You used a key word, leasing," Mr. Caulfield remarked. "Of course we are aware that some people want to make sales. Will that subject be discussed at the Windy Gap meeting?" Mr. Zimbleman responded that it is not on the cur- rent agenda. It could be possible, however. "I know that Broomfield is apparently back looking at it rather seriously," he said. At one time they were negotiating with Estes Park, he added. Part of Estes Park's water has already been sold to MDC," Mr. Caulfield stated. Mr. Zimbleman under- stands that the Estes Park Council was reconsidering the structure of that offer. MDC wasn't asking to get out of that offer. They were merely asking Estes Park to restructure it somehow. "I don't know what the implications of that are," he added. Out of the 40 units that Estes Park had, only three are left, and they have decided they need those. Water Board Minutes • • October 21, 1988 Page 3 Mr. Zimbleman went on to say that Boulder is absolutely on record stating their willingness to sell. Longmont is continuing to talk about it. Greeley has mentioned interest in some offers. However, Greeley is not as strong as Longmont and Longmont isn't as strong as Boulder. Westminster is still clearly in the market for water. The whole area around Erie is beginning to pick up. Erie is becoming quite serious about doing something about their water. Mr. Zimbleman continued. The other interesting thing that is happening is that the whole area south of Greeley down to Fort Lupton has a critical water quality problem. They are talking about forming a special water district which would take in the whole area of Eaton, LaSalle, Platteville, Fort Lup- ton, etc. If they form a district, there may be some possibilities for Windy Gap water there. Fort Morgan now has some CBT water. They would like, at some point, to consider a pipeline out of Carter Lake all the way east. "We could end up all the way out to the Public Service Pawnee Plant," he said. When the NCWCD was formed, Erie chose not to be in it. There is an area down there that is eligible for inclusion, but Erie is not in that area. Erie has expanded part of the City into District boundaries. However, expanding the District boundaries these days is not very feasible, he contends. He went on to say that eventually Louisville and Lafayette may be interested. They obviously could be potential customers for Windy Gap. "In modifying the Carriage Contract," Mike Smith wanted to know, "are there any issues related to the CBT users being protected?" Mr. Zimbleman replied, "that is one of the key elements in the Carriage Contract. There are things like Windy Gap water has to spill first. We aren't going to change that." The District is merely trying to address the fact that they do the mainte- nance now and the Bureau pays us instead of vice versa. The dollars are the same; it might change when the dollars are due. "Instead of trying to fore- cast how much water we are going to pump and pay the Bureau based on water pumped into the system, we are going to try to get the Bureau to agree to bill it just based on water delivery. In order to get 48,000 AF yield, some years we have to pump 80,000 and other years we pump 5,000. That creates some "roller coasters" in the cash flow. From a dollar accounting basis, it would be better to pump as much as we can. There was considerable discussion related to the possibility of one of the allottees making an agreement to sell water out of Weld, Larimer or Boulder Counties. As a result, the District Board would be faced with meeting the issue head on and making a decision. They may say they aren't going to approve the allotment contract, in which case the sale would be null and void, Mr. Zimbleman explained. "That's within the Board's prerogative," he added. "Would leasing affect the sub -district boundaries?" MaryLou Smith asked. Mr. Zimbleman responded. "With leasing the scenario would probably be something like this: The Corps of Engineers would give Denver a 20 year permit to build Two Forks. Until Two Forks was on line, we would lease them Windy Gap water." Even allowing leasing to occur, will require some legislation. The Water Board Minutes October 21, 1988 Page 4 law currently says that the water can only be used in District or Sub- district boundaries. So, even leasing has some problems, he emphasized. "We need to know that Denver has something down the line so that when we need the water back they can return it to us." The reason Broomfield works well is that although it is south of the Boulder County line, it is hemmed in on the south, west and east, so the only way it can grow is north; that's into Boulder County. Here's a paraphrase of the resolution that the District Board has with Broomfield: "We will sell you Windy Gap water, primarily for your expansion north into Boulder County and on a yearly basis you must show us that you have maintained enough other independent water to serve that portion of the City that is south of you." Jim Kuiken asked for an update on the South Platte Study. "I think it's going well," Mr. Zimbleman replied. It is a study that the District is doing itself. Although it is taking some time, "we are doing it in a way and at a speed that everyone on the river is comfortable with in terms of where we are going and what we are doing." The recent decision to use Sampson, a model developed by the Water Resources Research Institute (primarily Morell Seytoux) to model the South Platte River, both surface and ground water, so the District could look at conjunc- tive use, was a monumental one. The State Engineer decided that his office had some interest in it as well. Now the problem is getting it converted from the Super Computer to a smaller system. At this point there are no pre- liminary results. The early phase has essentially been data collection and information collection. Extensive interviews are also being conducted. Executive Session Mike Smith explained that originally Attorney John Carlson planned to update the Board on some legal matters regarding Excalibur. However there was a change in plans. Nevertheless, the Board went into an executive session in order that Mr. Smith could inform the Board about the current situation. Committee Reports Jim Kuiken asked if there was a report from the Engineering Committee on the proposed agreement between the City and the Fort Collins -Loveland Water Dis- trict regarding the use of the new 60-inch water line. The committee's Chairman Dave Stewart planned to prepare a report and present it to the Board, but Mr. Stewart was unable to attend today's meeting. Mike Smith said that the proposal will be brought to the Water Board at their November meet- ing. Mr. Caulfield suggested that the Board discuss standing committees in gen- eral. First, is there a need for committees? Ray Herrmann implied at the last meeting that he isn't certain that standing committees are necessary. Many issues are determined by the Water Board as a committee of the whole anyway, he said. Committees should not be established when there is no cur- rent need for them. Marylou Smith believes the Board should have a few standing committees but they should be more clearly defined than the current ones. Water Board Minutes • October 21, 1988 Page 5 Jim Kuiken expressed the view that you name particular committees and if they have nothing to consider, they are not going to meet and nothing will happen. If an issue comes up, they deal with it," he asserted. Rich Shan- non commented: "If that's true the concern is that sometimes there is a ten- dency to feel the pressure to meet because you are in existence and you start looking for things to consider." Mr. Kuiken said the other side is that you must match the things there are to deal with. Chester Watson thinks that as things evolve, perhaps certain people on the Board could be asked to handle that particular situation and could report back by the next meeting. That's essentially what Ray Herrmann was saying. Mr. Caulfield said the only difference is that we have a committee in existence with a chairman who can take charge, but ad hoc committees could be appointed when needed, he agreed. Mr. Caulfield suggested that if we are going to have committees, we limit them to four: Engineering, Conservation and Public Education, Legislative and Finance, and at least temporarily Stra- tegic Planning. Marylou Smith pointed out that the Bylaws call for standing committees. The Bylaws say our committees shall include but not be limited to, Engineering, Utility Services, Conservation and Public Education, Legislative and Finance, and Program Evaluation. She thinks we should make some changes then change the Bylaws to reflect that. Tom Sanders pointed out that it has always been the policy that anyone on the Board is welcome to attend any committee meeting. He thinks we should keep the existing committees and the new members be appointed to the committees of their interest. Mr. Caulfield suggested that the Strategic Planning Committee have a final meeting to determine if we need that particular function any longer. That committee's function was taken over by the joint Council and Water Board Ad Hoc committee, referred to as the Water Supply Policy Committee. The Water Board just reviewed the Committee's recommendations, accepted them and recommended that the City Council accept them. "With this perhaps we have already done the strategic planning," he said. The major problem with that is Halligan Reservoir, assuming that we are talking about the potential yield of Halligan being about 10,000 AF. We need to think about these ques- tions, he concluded. Tom Moore asked if staff would find it more convenient to have specific com- mittees to call upon when needed. Mike Smith replied that either having them in existence or appointing them when needed, works for staff. Marylou Smith moved that the Bylaws be amended with regard to the committees, the exact wording to be determined later. The committees at this time would include Legislative/Finance, Conservation and Public Education, Engineering and one she suggests be named the Water Supply Committee. She explained that the Water Supply Committee would combine strategic plan- ning and the regional supply question. She thinks these committees should be Water Board Minutes October 21, 1988 Page 6 listed in the Bylaws. Tom Moore seconded the motion. He commented that with regard to the Bylaws, the phrase "such as" should take care of the wording. Ms. Smith added that she also would propose that the Water Supply Committee look into regional coordination of supply. Henry Caulfield provided some background on the regional question. Within the last year, some problems have emerged regarding the regional issue, he began. "Exactly what we can do about regional questions is far from clear. He defined regional as relationships with East Larimer County Water District (ELCO), Fort Collins -Loveland Water District, South Fort Collins Sanitation District, Boxelder Sanitation District, etc. He has been discussing this question with Mike Smith. Mr. Caulfield's view is that after having discus- sions with the regional entities he and Mr. Smith will report back to the Water Board. He emphasized that this isn't pre-empting anything as far as this Board is concerned. It is merely taking advantage of the fact that he is the newly elected president of the Board. "Through the discussions let's see if there is anything we could or should be doing in the way of a regional approach," he suggested. This is Mr. Caulfield's proposal for a regional approach. He doesn't see the need for having a committee at this stage of the game. Marylou Smith commented that it sounds like a good approach. Tom Sanders agreed. "We tried meeting with Loveland and Greeley," he said, "and nothing really came of it." Also, perhaps the City Manager has a different view on regionalization than we do. According to what Norm Evans has indicated, it is Mr. Caulfield's understanding that he does. He added that we also need to know what ELCO and Fort Collins -Loveland are thinking in this context. He concluded that we need to take a quiet approach. "We can't start with any proposals." Jim Kuiken pointed out that another focus of the regional committee was the regional concern for the intrusion of the Denver -metro area into northern Colorado. Mr. Caulfield agreed that we need to know Loveland's and Greeley's attitudes, for example, about the threat of Metro -Denver. "As you will recall," Mr. Caulfield said, "Fort Collins tried to take a leadership role when Thornton came up here." It appeared that other entities did not want to join us in our efforts to back up Water Supply and Storage Co. There was agreement from the Board that Henry Caulfield and Mike Smith pro- ceed with Mr. Caulfield's suggested regional approach. Chairman Caulfield directed the Board's attention back to Marylou Smith's motion. She restated the motion. The Board should change the Bylaws to reflect the current status, and that the standing committees that will be included are: Engineering, Conservation and Public Education, Legislative and Finance and the Water Supply Committee. Mr. Caulfield asked if the Water Supply Committee would consider any remain- ing questions of the Strategic Planning Committee. Ms. Smith answered yes. Mark Casey asked if it would also take on the regional issues after we • Water Board Minutes • October 21, 1988 Page 7 resolve some of the questions that Henry Caulfield talked about. "If it seemed a committee should handle that rather than the Board as a whole," she replied. The vote was taken. The motion passed with Chester Watson casting the nega- tive vote. He explained that, as he stated earlier, he doesn't think there is a need for committees. At their next meeting, the Board will vote to amend the Bylaws as stated. Rich Shannon believes that Mr. Caulfield's suggestion of he and Mike Smith developing a stronger working relationship with ELCO is very timely and would be helpful. He asked if there was anyone else on the Board who knows the ELCO board members. Mr. Caulfield looks at the initial meeting with ELCO as just establishing a relationship; a getting acquainted meeting where people talk about what their concerns are, not, at this point, one to solve any problems. Mr. Caulfield asked Mr. Shannon if along with ELCO he also is referring to the sanitation districts. Mr. Shannon isn't sure where Board discussion with the Boxelder Sanitation Board would hurt or help right now, since there has been so much staff discussion with them. On the other hand, with ELCO there is one issue that needs to be discussed fairly quickly and that is our con- cern with overlapping service areas as the City expands through annexation. "We don't want to get into a feud over territory," he insisted. Mr. Caulfield pointed out that he lives in the ELCO District. "I don't think it will be many years before the whole Country Club area is going to be part of the City. In fact, a few more annexations and the area that I live in will be surrounded. The biggest chunk of this was done when Anheuser-Busch was put inside the City." It seems to him that when that happens, that is when the biggest part of what is inside the City will be served by ELCO. Maybe then will be the time to raise the problem, or at least be prepared for it, he said. In the absence of anything more concrete, Mr. Caulfield suggested that he and Mike Smith meet with the chairman of ELCO and any others involved and have a beginning meeting without getting into a confrontation at this point. Mr. Caulfield remembered that there was a time when the Water Board took a hard stance that everything inside the City should be served by the City; electri- cal, water supply and water treatment. That was given up about six or seven years ago when the City Council took the initiative. Law suits that had been filed against the City because it appeared that the City was trying to take over, were settled. Peace was declared on the basis that it would be legiti- mate for Fort Collins -Loveland and ELCO to serve inside the City. "My own feeling is that was a wrong decision in principle," Mr. Caulfield asserted. On the other hand, it may have been the right decision for other problems at that time. "But it's wrong, as we project in our studies, to have one third of the City served by other districts in the year 2030." How to go about handling this problem is another subject, he concluded. Water Board Minutes October 21, 1988 Page 8 MaryLou Smith perspective. answers to as said she was glad that Mr. Caulfield provided that historical It filled in a lot of gaps that she has been trying to get to why this situation exists. Ms. Smith asked to return to the subject of committees. What is the strategy for getting new members on the Board involved. "My committee wants to get started, and we need to know who our members will be," she said. Mr. Caul- field asked Board members to indicate on what committees they wish to serve. The new members indicated their preferences. Mr. Caulfield wants to ask Tim Dow to be chairman of the Legislative and Finance Committee. At this point, committees will be comprised of the following members: Engineering David Stewart, Chairman Thomas G. Sanders James Kuiken Chester Watson Legislative and Finance Tim Dow, Chairman Thomas G. Sanders Thomas K. Moore Chester C. Watson Conservation and Public Education MaryLou Smith, Chairman David Stewart Neil S. Grigg Ray Herrmann Terry Podmore Water Suooly Committee Neil S. Grigg, Chairman James G. Kuiken MaryLou Smith Tom Moore Mark Casey The president of the Board is an ex officio member of all committees. Tom Moore reiterated that anyone on the Board who wishes to attend any com- mittee meeting is always welcome. Tom Moore asked what is happening at the Sludge Farm. "I'd like to tour the facility one of these days," he said. Others agreed. Therefore, the Board decided to tour the Resource Recovery Farm and Wastewater Treatment Plant No. 2 on Friday Nov. 4 at 3:00. All Those who wish to attend will meet at the farm at 3:00. The secretary will notify the Board of the final arrangements. Since there was no further business, the meeting was adjourned at 5:00 P.M. Water BoarU Secretary