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HomeMy WebLinkAboutWater Board - Minutes - 05/26/2011Water Board Minutes May 26, 2011 1 Fort Collins Utilities Water Board Minutes Thursday, May 26, 2011 Water Board Chairperson City Council Liaison Gina Janett, 493-4677 Wade Troxell, 219-8940 Water Board Vice Chairperson Staff Liaison Steve Balderson, 223-7915 Brian Janonis, 221-6702 Roll Call Board Present Chairperson Gina Janett, Vice Chairperson Steve Balderson, Board Members Becky Goldbach, Steve Malers, Lori Brunswig, Brett Bovee, Brian Brown, Reagan Waskom, and Duncan Eccleston Board Absent Board Members Johannes Gessler and Phil Phelan Staff Present Brian Janonis, Jon Haukaas, Kevin Gertig, Rita DeCourcey, Lori Clements, Helen Matson, Wes Lamarque, Patrick Rowe, Roger Buffington, Ellen Switzer, Dennis Bode, Carrie Daggett, Robin Pierce, and Harriet Davis Guests Mike Dahl, Platte River Power Authority, Bob Overbeck, Rob Vanuffelen, Councilmember Wade Troxell, District 4 Meeting Convened Chairperson Gina Janett called the meeting to order at 5:31 p.m. She began the meeting by mentioning her attendance at the Big Thompson Watershed Forum Annual Meeting held Feb. 24, 2011, at The Drake Centre. Copies of the meeting agenda are available for review. This is an excellent organization and she encouraged board members to consider joining. She also mentioned the Tri-City and Water Districts Water Board Meeting held May 19, 2011 at The Drake Centre. Dr. Judy Billica, Senior Process Engineer with Fort Collins Utilities, presented on water quality and water collaboration. Chairperson Janett stated it was one of the best, most informative presentations held at the event. She thanked the staff for their involvement in the event. Public Comment None (Mr. Overbeck, the only visitor present at the start of the meeting, stated he only came to observe the meeting and has no comment). Approval of March 17, 2011 and April 21, 2011 Minutes Board Member Brunswig moved to approve minutes from the March 17, 2011 meeting as amended. The last paragraph on page 6 concerning the Canal Importation Ponds and Outfall (CIPO) Update will be replaced with the revised section on page 7 (as revised by a Board Water Board Minutes May 26, 2011 2 Member from verbatim on tape). Board Member Waskom seconded the motion, and it passed unanimously. Board Member Brown moved to approve minutes from the April 21, 2011 meeting. Board member Goldbach seconded the motion, and it passed unanimously. Easement Request from Larimer County for an Underground Storm Sewer Pipe on Property Owned by City Utilities (Attachments available upon request). Water Engineering and Field Operations Manager Jon Haukaas introduced the topic. Larimer County is doing an expansion including a new stormwater management pond for both water quality and water quantity. The outlet pipe goes to the southeast section that crosses City-owned property, hence the need for the easement. The pond is fully designed for water quality capture volume and a 100-year event. The ponds outlet to a series of old gravel pits to the west of the River Bend Natural Areas. The ponds outlet is to the Boxelder Irrigation Company ditch and eventually to the Poudre River. It is designed to meet standards as per the Urban Storm Drainage Criteria Manual (USDCM), Volume 3. Staff recommends approval. * Vice Chairperson Steve Balderson recused himself from the discussion on this topic due to a conflict as a Larimer County employee. Board discussion: There are other properties along the pipe. How are those managed in that area? Each one is managed individually rather than as a collective system. The swale along the railroad tracks will still convey these other flows. A pipe will be buried below the swale to separately convey flows from the Larimer County Detention Center. Is there a construction easement and permanent easement? They will do the construction with the permanent easement. Is the pipe underneath the channel? There will still be a channel on top of the pipe. The pipe will be underneath the channel to separate the two flows. What is the standard practice for waiving fees to other governments? When Utilities built the Drake Water Reclamation Facility, Larimer County waived a considerable number of fees. Board Member Malers suggested a friendly amendment to the motion to include the legal description as per Mr. Haukaas’ suggestion: “Lot 34 and Tract A of Prospect Industrial Park.” Board Members Brunswig and Eccleston approved the friendly amendment. Motion: Board Member Brunswig moved that the Water Board recommend that the City Council consider approval of a Permanent Easement to Larimer County. Board Member Eccleston seconded the motion. Water Board Minutes May 26, 2011 3 Vote on the motion: It passed unanimously. Easement Request for the Sanctuary West Development (Attachments available upon request). Water Engineering and Field Operations Manager Jon Haukaas introduced the topic. The development is located on the north side of Laporte Avenue, west of Taft Hill Road, and opposite the Poudre R1 School District offices. The request is for a Pedestrian Access Easement. City of Fort Collins Utilities has a small piece of property for water valves. A pedestrian trail is needed for the area. Staff has looked at it and believes the alignment does not adversely impact any operations from a utility perspective. Staff recommends approval. Board discussion: Is this a permanent easement? Yes. How were the costs set? There is a fee schedule determined by Real Estate Services plus administrative fees. Real Estate Services has selected a nominal value of $500 plus a $1,000 administrative fee. The total area is 438 square feet. The easement allows the City to build a pedestrian trail and Utilities will still have access to the valve? Yes, the easement allows the City of Fort Collins Utilities to have surface access across the top. Utilities will still have the primary rights. Vote on the motion: It passed unanimously. Chairperson Janett noted that, in a discussion with Utilities Executive Director Brian Janonis, future easements that are non-controversial in nature will be reviewed by staff prior to deciding whether they should be presented to the Board. Appropriation Request for Relocation of Utilities in Mason Corridor (Attachments available upon request). Water Engineering and Field Operations Manager Jon Haukaas introduced the topic. Staff is seeking Water Board endorsement of an ordinance appropriating unanticipated revenue in the Water and Wastewater Funds for new capital projects to relocate water and wastewater facilities in the BRT (Bus Rapid Transit)/Mason Corridor. The cost of the relocations is to be reimbursed by the City to the Utilities through federal funding of the Mason Corridor Project. Board Member Brown moved that the Water Board recommend that the City Council consider approval of the proposed pedestrian access easement request for the Sanctuary West Development, consistent with staff's recommendation. Board Member Waskom seconded the motion. Amended Motion: Board Member Brunswig moved that the Water Board recommend that the City Council consider approval of a Permanent Easement to Larimer County in the area of Lot 34 and Tract A of Prospect Industrial Park, an area purchased as a buffer for the Drake Water Reclamation Facility in 2002. Board Member Eccleston seconded the motion. Water Board Minutes May 26, 2011 4 The Mason Corridor project involves surface improvements for transportation from the South Transit Center location along Mason Street to the Downtown Transit Center. City of Fort Collins Utilities has looked at what impact it will have on their services and infrastructure and have identified eighteen projects for possible protection or upgrades. The BRT project is a federal grant project and Utilities is treated as an outside agency. The BRT project team will make requests to Utilities at the necessary time to make the improvements. Utilities currently needs the funding for the design work and implementation. The request is to appropriate the anticipated revenues for 2012. Board discussion: Do any of the items constitute work that Utilities planned to complete regardless of the project? Some of the work is direct opportunity work. For example, casings under the railroad need to be extended. Additional fill material will alter manholes. Some isolation valves will be added. The projects represent both a mix of opportunities for improvements and necessary work for the project. The water lines and wastewater lines will stay in the same place? There may be one or two relocations, but generally they will remain in the same place. Would any of the projects have been cheaper if other work had already commenced? Not really; the majority of the work is surface work other than the fill areas and the retaining walls. Beyond this, is there other work to be done from other funding? This represents most of the work to be done. Is the money in the Reserves fund? Yes. Is there any fiscal impact on taking the money now and paying it back later? No, it is money that is in the Reserves fund. Is the federal funding that is paying for the project part of the big picture? Utilities is not making significant improvements to the systems, just focusing on additional protections. Does anything need to be upsized with crossings? No, trunk lines have already been sized. How old are the lines? The lines in Downtown Fort Collins are approximately 80 - 100 years old. The lines in the south part of town are approximately 20 years old. Is it feasible to upgrade the older lines? No, it is not feasible. It is not an appropriate cost to the BRT project. Utilities is taking the opportunity while doing these projects to investigate and evaluate the lines. Are the lines west of the railroad tracks? The lines cross east to west. One or two of the lines are linear. Water Board Minutes May 26, 2011 5 Vote on the motion: It passed unanimously. Intergovernmental Agreement Between the City of Fort Collins, City of Longmont and Platte River Power Authority for the Operations of the Cities’ Customer Information System Utilities Customer Support Manager Lori Clements introduced the topic. In January 1998, the cities of Longmont and Fort Collins (the “Cities”) entered into a 10-year intergovernmental agreement with Platte River Power Authority (Platte River) to purchase and operate a joint customer information system (CIS) for customer account management and billing on behalf of the two cities (hereafter referred to as the “CIS Agreement”). On Aug. 26, 2008, the term of the agreement was extended for two years. On Aug. 17, 2010, City Council adopted Resolution 2010-049 extending the term of the CIS Agreement to Aug. 26, 2011 to allow additional time for staff discussion. The staffs of the Cities and Platte River have discussed and agreed on the terms of a draft updated CIS Agreement (hereafter referred to as the Updated CIS Agreement”) and are bringing forward the draft updated CIS Agreement for Council approval. Staff from all entities has been meeting for the last year in an attempt to give more definition to the roles and responsibilities of the Operations Committee and what it will do in regards to coordinating efforts and making changes to the agreement. This includes staffing needs, support for the CIS system, security, and disaster recovery, for example. The agreement will be extended for another ten years. It has been in place since 1998. Board discussion: Why is the Water Board involved in this discussion when it is primarily related to the electrical side? The CIS is the billing system and is used for both electrical and water billing. Why is Longmont a partner? Any of the four cities that jointly own Platte River could come together and develop a joint agreement to reduce costs. Longmont and Fort Collins are the only two using the system. The other two cities (Loveland and Estes Park) have their own separate billing systems. Did you reach out to other cities? Utilities Executive Director Brian Janonis stated that it was discussed at the Platte River board level and the other two cities are not interested in joining the agreement. What is the advantage to them for not participating? They have different billing systems. Has the City looked at other systems and made cost comparisons? Prior to 1998, the City issued a Request for Proposal (RFP). The City evaluated several vendor systems and did several demonstrations. It was discussed that, if one of the other entities want to select something else, Board Member Eccelston moved that the Water Board recommend that City Council approve the proposed appropriation ordinance to fund the relocation of water and wastewater facilities in the BRT/Mason Corridor. Board Member Goldbach seconded the motion. Water Board Minutes May 26, 2011 6 they have that option. The other entity must be notified and they would work together to look at purchasing another system. The entities cannot opt out without notice. It takes three years to get a billing system up and running. It would not happen in the near future. Are we happy with the current billing system and how does it relate to the new Smart Meter program? It will take work to integrate the Smart Meter system with the CIS. Utilities would not want to make any changes to the system until after the Smart Meter program has been implemented. Does the burden of the implementation fall on the City or the private contractor? Ms. Clements stated she believes it is in the Smart Meter vendor contract to work with the CIS system. There are other cities with the same billing system that have implemented Smart Meter programs. There is experience and a history. How much per year does it take to run the software part of the system? How many transactions does it cover? Fort Collins Utilities pays $430,000 per year to Platte River to cover items such as staffing, software, and licenses. Fort Collins Utilities issues approximately 75,000 bills a month. Does this change the number of people that would be employed? No, that does not change. Vote on the motion: It passed unanimously. 2010 QualServe Benchmarking Presentation (Presentation available upon request) Water Resources and Treatment Operations Manager Kevin Gertig began the presentation by introducing Rita DeCourcey, Utilities Financial Analyst, who conducted the QualServe Benchmarking Study. Mr. Gertig stated the presentation is for informational purposes only. The City of Fort Collins Utilities, along with other utilities across the nation, has observed increased costs. The costs for water production has increased, not decreased, with water conservation. Benchmarks are necessary to cross check and be fiscally responsible as an agency. It is also important to analyze what trends are occurring with both water and wastewater operations, not only with the plants, but also with underground infrastructure. Twenty-two different metrics are used; however, only two are presented in this presentation. QualServe was established in 1996 by the American Water Works Association (AWWA). AWWA is our “speaker” for the water industry. AWWA joined with the Water Environment Federation (WEF) to create QualServe with the idea that across the country we will try to improve metrics and will look at standard metrics to ascertain how well we do as a utility. The treatment of water is different across the country. Every water source is different and it is important to remember this when making comparisons. Vice Chairperson Balderson moved that the Water Board recommend adoption of the Intergovernmental Agreement between the cities of Fort Collins and Longmont and Platte River Power Authority for the operation of a customer information system required for the maintenance and billing of customer accounts. Board Member Malers seconded the motion. Water Board Minutes May 26, 2011 7 Fort Collins Utilities began using the program in the 2000 time frame. In 2003, there were 69 participants in the “Water Only” category. In 2009, the number dropped to 18 participants. In 2003, there were 186 total participants. In 2009, the number dropped to 60 participants. This may have been due to economic reasons because the program requires a lot of effort and rigor to maintain. Highlights: • Five major areas of analysis include Organization Development, Business Management, Customer Relations, Water Operations, and Wastewater Operations. • Fort Collins Utilities achieved 100 percent drinking water compliance for the period from 2003 to 2009. • Water Treatment costs increased 35 percent overall, including a 57 percent increase in chemical costs. • Water Meter Operations costs saw a 23 percent decrease in commodities primarily due to a reduction in water meter purchases. • Payments and Transfer costs increased 155 percent in the Water Fund from 2005 to 2009 and 54 percent in the Wastewater Fund. This significant increase is due to the addition of the Asset Management Program, GERP (General Employee Retirement Plan) supplemental and post-employee healthcare costs, and customer refunds. • For many years, solid residuals were stored at the Waste Treatment Facility. New regulations require that residuals can no longer be stored on site. The solids are required to be removed on a yearly basis. The additional cost ($204,000) covered fill material at the Larimer County Landfill. The USGS (United States Geological Survey), which is critical for flow measurement and water quality monitoring, is experiencing cuts and increasing costs. There have also been increased costs with the NPDES (National Pollution Discharge Elimination System) permit study for MWRF. Summary • Proceed to utilize BFO (Budgeting for Outcomes) as budgetary process • Costs are in line with projected budget • Provide Legislative, Finance, and Liaison Committee updated financial information on quarterly basis as requested • Continue to benchmark and use internal measurements (Utilities is concerned with 69 percent decline in participants). Board discussion: Chairperson Janett thanked Mr. Gertig for the wealth of information and stated that it gives the board great confidence that Utilities is managing and monitoring costs so closely. It appears that the mean costs in Fort Collins have increased more than the mean from 2005 to 2009. Has there been an enormous cost increase compared with other entities? Benchmarking has to be based on home funds. Data can be skewed. There is clearly a shift in data from 2005 to 2009. Mr. Haukaas stated that Utilities is in communication with the group who did the surveys and is looking into what they are tracking and how the numbers compare. Water Board Minutes May 26, 2011 8 Does the program give you a framework? Have you learned how to do benchmarking from the program? Yes, Mr. Gertig feels that it is very important to have a comparison. Fort Collins wastewater and water operations are unique compared to other entities across the country. He feels Utilities needs to keep doing the surveys, as well as seek continuous improvements. Are there other benchmarking opportunities that are Colorado Front Range specific? Yes, there are a few and Utilities has participated in other surveys. QualServe is more comprehensive than other programs. Is QualServe used in the United States primarily? Yes, but they are getting international requests. With stormwater, it seems like a lot of the comparisons are Front Range. Because we don’t know the cities and the geography, it seems more “black-boxish.” Utilities can produce this data. A board member stated he thinks it is important to do these metrics. What did you learn from the 22 metrics to improve Utilities’ operations? What are the improvable areas? Asset management is critical. Utilities needs to continue to be proactive. Regulatory compliance is also very critical. We need to have systems in place so that we do not shock the rate payers. Tools such as TBL (Triple Bottom Line) and energy efficiencies should continue to be used and staff should continue to look at improvements to control O&M costs. A lot of things such as chemicals, energy, and other commodities costs are beyond Utilities’ control. Contractual services seem to be problematic. Is Utilities thinking of how to control these costs? Yes, we are. It is a balancing act that utilizes professional services versus staff members with intermittent services. Mr. Haukaas stated that some of the contractual costs are internal to the City. We would rather be more efficient at what we do well, and pay someone else in the City for what they do well. Some of the components of contractual costs, including the cost of oil and equipment costs, have also increased. Commodity costs have increased; however, the mean did not go up from 2005 to 2009. How come we do not see the jump for the overall mean? Fort Collins Utilities is doing more than the typical Utility. For example, special districts do not have the same services (such as Watershed Program, Water Quality Laboratory, and Pollution Control Laboratory). Our City Council believes in the programs we implement. We should work together with other agencies to minimize costs. Chairperson Janett stated that the Board reviewed the potential of the Tri Districts using a portion of the Water Treatment Plant because our plant had excess capacity. They would purchase part of the capacity. The board encouraged it to go forward, but it did not get past the Council level. Fort Collins Loveland Water District is still encouraging that collaboration. How many comparable districts are there in the United States? How many people are participating in the program? Participants sign a confidentiality agreement before participating in the program so the exact number is not known. Mr. Janonis stated that Region 4 (the region that Fort Collins is in) has gone from 63 participants to 13 participants. The fact that water conditions are different in the West than in the East could also be a factor. Water Board Minutes May 26, 2011 9 Will we see cost decreases? Yes, we could see slight decreases in costs. Mr. Janonis stated that, for example, if the districts came on board to utilize the Fort Collins Water Treatment Plant, unit costs would decrease as the volume goes up. How does QualServe relate to the GRI (Global Reporting Initiative)? GRI is about how you pull all the information together from a TBL perspective. There is a close association with GRI on how to reduce impact in relation to the environment and other factors. There is an indirect relationship between QualServe and GRI. The numbers from the QualServe report are not included in the GRI report at this time. From 2005 to 2009, energy costs increased. How does it benchmark for Water and Wastewater to the other Utilities? Regarding energy on the water side, we have made substantial changes. For example, Fort Collins Utilities uses elevation to our benefit. Fort Collins Utilities is looking at hydro and other options. Fort Collins Utilities pays the General Fund PILOTs. Does the City look at the methodology for that process? Mr. Janonis stated that typically Utilities goes through an annual review of the PILOTs and they have to be competitive. We compare ourselves with other municipalities. Utilities for 21 st Century Purpose Statement Mr. Janonis introduced this topic. The 21 st Century Initiative was created in 2008 in response to several changes that Utilities was experiencing at the time such as aging workforce, environmental changes, and resource restraints. The focus shifted on how to create a sustainable utility. Utilities realized it wanted to inspire the community by serving as an example and began working with staff and the Core Sustainability Team to create the purpose statement. The purpose statement is as follows: “Inspiring community leadership by reducing environmental impact while benefitting customers, the economy, and society.” Board discussion: Chairperson Janett feels that the statement is out of order and that benefiting and serving customers should be the primary focus. Mr. Janonis stated this is the overall Utilities mission. The City of Fort Collins is currently in the process of going through the Baldrige Performance Excellence Program in attempt to sequence things better, for example, looking at the goals before planning the budget. Hopefully, this program will assist Utilities in finding their overall purpose and mission. Could you give us an example of the sustainability programs? Mr. Janonis gave the example of the FortZED Program. This program’s goal is for Downtown Fort Collins to become a Zero Energy District. Businesses such as New Belgium Brewing Company and Woodward Governor are partners in the sustainability program. Ideas are shared between those businesses and Utilities. In terms of water conservation, Utilities is setting goals with the Water Supply Demand Management Policy and has seen businesses increase production while decreasing their water use. For example, breweries measure productivity with barrels of water per barrels of beer. Five years ago, breweries used six to eight barrels of water for every one barrel of beer produced. Currently, breweries are using four to five barrels of water for every one barrel of beer produced. Water Board Minutes May 26, 2011 10 What is an example of best management practices used with stormwater? Mr. Haukaas stated that Utilities is using several demonstration projects through partnerships with local businesses. One of the large objectives planned is a Green Streets Demonstration Project that is a larger city project rather than “spot” projects. A board member expressed concern about the landscape medians on North College Avenue and suggested that the median design be revised to allow the trees and plants to receive more water. Mr. Haukaas stated that submerged medians at this particular location raise safety concerns due to the proximity to traffic lanes. Mr. Janonis stated that Utilities is trying to take more of a “systems approach.” The Biogas Energy Project is one example. Utilities is looking at projects that benefit all branches of Utilities as well as businesses and the community. Who are you targeting with the term “community leadership”? The term is focused on anyone in the community including businesses and other government entities such as Larimer County. The Utility is trying to serve as an example to these entities. Committee Reports Conservation and Public Education Committee: No report due to Committee Chair’s absence. Engineering Committee (Vice Chairperson Balderson): The committee reviewed the Asset Management Program. Vice Chairperson Balderson will send the committee report to the other board members. Chairperson Janett mentioned the Mulberry Water Reclamation Facility Grand Opening and asked for confirmation of the date. Mr. Gertig stated that the tentative date is Saturday, June 18, 2011. More information will be sent to the board members. Legislative, Finance and Legal Committee (Board Member Goldbach): The committee met today before the board meeting. An informational memo concerning Nutrient Regulations and the potential cost to Utilities will be sent to Council and the board members. It is for informational purposes only and no recommendations will be made. The next meeting topic will be draft guidance regarding identifying waters protected by the Clean Water Act. A board member questioned how does this process fit in with what staff would normally do to inform Council of issues? Should a staff member look at the memo before it is sent to Council? Chairperson Janett stated that staff has been consulted on the information in the memo. Chairperson Janett stated that there is a current legislative resolution to have a study funded to study the financial impacts of the nutrients. Water Supply Committee: Chairperson Janett gave a report on Board Member Gessler’s behalf. The committee discussed the concept of water sharing and rental water agreements. In 2003, the City sought to rent water from farmers. At this time, a concept was developed to create an agreement to formalize the process. Staff was asked to analyze any benefits to this type of agreement.