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HomeMy WebLinkAboutWater Board - Minutes - 06/20/2013Water Board Minutes June 20, 2013 1 Fort Collins Utilities Water Board Minutes Thursday, June 20, 2013 Water Board Chairperson City Council Liaison Steve Malers, 484-1954 Wade Troxell, 219-8940 Water Board Vice Chairperson Staff Liaison Brett Bovee, 219-2747 Jon Haukaas, 221-6671 Roll Call Board Present Chairperson Steve Malers, Board Members Brian Brown, Becky Goldbach, Eric Garner, Liesel Hans, Lori Brunswig, Andrew McKinley, and Duncan Eccleston Board Absent Board Members Heidi Huber-Stearns, Phil Phelan, and Brett Bovee Staff Present Jon Haukaas, Kevin Gertig, Lance Smith, Chris Parton, Lisa Voytko, Donnie Dustin, and Harriet Davis Guests Kevin Jones Meeting Convened Chairperson Malers called the meeting to order at 5:30 p.m. Public Comment None Approval of February 21, 2013 and March 7, 2013 Minutes Board Member Brown moved to approve the minutes of the February 21, 2013, meeting. Board Member Garner seconded the motion. Vote on the motion: It passed unanimously. Board Member Brown moved to approve the minutes of the March 7, 2013, meeting. Board Member Garner seconded the motion. Vote on the motion: It passed unanimously. * Board Member Eccleston abstained due to his absence at the March 7 meeting. Work Session Review Chairperson Malers gave on an update on the June Work Session. The board discussed a joint meeting with the Natural Resources Advisory Board. This is tentatively scheduled for September. The board also discussed floodplain regulations. Follow-up materials were sent to the board with comments requested by Floodplain Administrator Marsha Hilmes-Robinson. Staff presented a discussion item on stormwater permit fees and charges. Staff is currently discussing fee adjustments for this. Water Board Minutes June 20, 2013 2 Staff Reports Monthly Water Resources Report Water Resources Manager Donnie Dustin provided this report for the agenda packet. Mr. Dustin also presented information on water restrictions and the reasons behind the lifting of water restrictions. Highlights from the presentation:  50/50 split from Poudre River and Colorado-Big Thompson (CBT) Project  Uncertain Poudre supplies and the persistent drought led staff to recommend restrictions.  The fire impacts impaired the Poudre River.  The snowpack increased from 76 percent on April 15 to 119 percent on May 14.  There were Horsetooth Reservoir supply increases, including a CBT quota increase of 10 percent. The North Poudre Irrigation Company (NPIC) increased appropriation. This resulted in an increase of water. The Windy Gap Project Reuse Plan with Platte River Power Authority (PRPA) also increased the water supply.  Mr. Dustin presented a graph showing the carryover target progression from April 1 to June 1. He also presented a graph showing the water restrictions savings.  Restrictions were lifted on June 1. Utilities can meet the remaining 2013 demands with Horsetooth water even with a hot, dry summer. There is no longer a water supply shortage.  Staff is encouraging customers to use water wisely, including advocating 2-day per week watering. Highlights from the discussion:  A board member inquired about the savings that were weather related versus the conservation efforts. Mr. Dustin responded that expected use is hard to calculate on the shoulder months, but there have been savings related to both. Mr. Dustin stated staff is taking notes and will make adjustments to the Water Supply Shortage Response Plan.  A board member inquired about the public response. Mr. Dustin stated staff has responded to inquiries from the public, including questions about lifting restrictions. Lack of storage is a primary reason for lifting the restrictions. Big Meadows Fire Mr. Dustin gave an update on the Big Meadows Fire. The fire burned 500-600 acres and is 95 percent contained. There has been no large impact on our water supply. Recommendation on an Amendment to the Pleasant Valley Pipeline (PVP) Enterprise Allotment Contract (Attachment available upon request). Water Production Manager Lisa Voytko introduced the item and presented background information related to the PVP Enterprise. The pipeline is owned by the Pleasant Valley Pipeline Activity Enterprise (PVP Enterprise), through Northern Colorado Water Conservancy District (Northern). The City is one of three participants of this pipeline, which also includes the Tri-Districts (East Larimer County Water District, Fort Collins-Loveland Water District, and North Weld County Water District), and the City of Greeley. Water Board Minutes June 20, 2013 3 The pre-sedimentation basin, constructed by the City of Fort Collins, is located on land belonging to Northern and will tie into the PVP. The basin came online June 18, 2013. The existing allotment contract with the PVP Enterprise must be supplemented to include the pre-sedimentation basin. This item is scheduled for City Council on July 16, 2013. Staff recommends the supplemental contract to the allotment contract. Highlights from the discussion:  A board member asked about the enterprise in general. Ms. Voytko stated Northern operates and maintains the turnout structure and pipeline. The Tri-Districts and the City maintain the screen as well as the pre-sedimentation basin.  The Tri-Districts have agreed to contribute to the construction costs of the basin. Discussion on the motion: There was no discussion on the motion. Vote on the motion: It passed unanimously. Approve Joint Funding of a Regionalization Feasibility Study with the Tri-Districts (Attachments available upon request). Water Engineering and Field Operations Manager Jon Haukaas introduced the item and shared background information on the subject of regionalization. The City of Fort Collins and the Tri-Districts (East Larimer County Water District, Fort Collins- Loveland Water District, and North Weld County Water District) each operate a water treatment plant, located next to each other on LaPorte Avenue. The City has the ability to share potable water with North Weld and Fort Collins-Loveland through interconnections in its distribution system. Staff is currently investigating options for regional water solutions. Regionalization has been discussed in the past and there is renewed interest in determining the cost benefit due to growth in the service areas, excess capacity in the City’s facility, and the rising costs of treating water. A Regional Water Cooperative Committee was established by an Intergovernmental Agreement for Water Sharing and includes Operations Managers for each treatment facility. Mr. Haukaas presented the reasoning behind the study:  Both plants serve the citizens of Fort Collins  Parties agree in principle that collaboration is a more sustainable approach and can increase efficiencies.  A third party analysis is critical to determining the financial evaluations around costs. A Request for Proposal was developed:  Scope of Work  Consultants will meet with Stakeholders to discuss individual concerns or constraints. Board Member Goldbach moved that the Water Board recommend that City Council consider approval of an ordinance authorizing the supplemental contract to the Pleasant Valley Pipeline Enterprise Allotment Contract. Board Member Garner seconded the motion. Water Board Minutes June 20, 2013 4  Focused around developing a cooperative business model to receive “raw water” from the participants and return finished potable water.  Charging the members based on a Cost of Service model. Mr. Haukaas presented some limits of the study:  Member parties shall maintain control and responsibility for water rights, raw water storage, and distribution systems. The consultants will present the results to the City and the Tri-Districts late 2013 or early 2014. Mr. Haukaas presented the costs:  Initial fee is $220,185 split four ways  Fort Collins share would be approximately $55,050.  The three Water Districts have approved their contributions. Highlights from the discussion:  A board member asked if the amount of water used for hydraulic fracturing (‘fracking’) by North Weld will also be a part of the study. Mr. Haukaas stated this is not part of this study. This particular study looks at options for water treatment, and the demands from North Weld are not driving the study. Population growth in south Fort Collins is driving the study.  A board member inquired as to who brought the idea forward. Mr. Haukaas stated the idea is a result of the discussions by the Regional Water Cooperative Committee.  A board member asked about options for sewer treatment as part of the project. Mr. Haukaas stated staff has approached Boxelder Sanitation District to discuss options. Currently, there are no opportunities to increase the customer base.  A board member asked if improvements to the plant would be necessary. Mr. Haukaas stated a financial analysis is necessary to determine these costs. Ms. Voytko shared background information on the Regional Water Cooperation Committee. This committee includes Plant Managers and City Senior Managers. A subcommittee was formed to look at the Request for Proposal. The subcommittee made a recommendation to the full committee from a list of three possibilities. Mr. Haukaas reiterated the decision was made based on the consultants’ qualifications. Costs were in a sealed envelope so the committee would not automatically choose the low bid. Discussion on the motion: There was no discussion on the motion. Vote on the motion: It passed unanimously. Intergovernmental Agreements with Fort Collins Loveland Water District (Attachments available upon request). Mr. Haukaas introduced the item and introduced Strategic Financial Planning Manager Lance Smith. For the past year, staff has been negotiating with Fort Collins Loveland Water District Board Member Brown moved that the Water Board recommend City Council consider approval of an Ordinance authorizing the joint funding of a Regional Water Treatment Solutions Study for 25 percent of the final cost with the City of Fort Collins’ share not to exceed $75,000. Board Member Goldbach seconded the motion. Water Board Minutes June 20, 2013 5 (FCLWD) to restructure the existing water sharing agreement and to enter into a new water sales agreement. There are two separate agreements:  Amending existing water sharing agreement “Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District”  Entering into a new sales agreement “Intergovernmental Agreement for the Sale of Potable Water with FCLWD” Mr. Smith presented information on the Current Water Sharing Agreement:  In effect since 1999  Intended to allow FCLWD to lease transmission capacity from Fort Collins Utilities (FCU) to convey water to FCLWD  The current daily limit is 9 mgd. The current annual limit is 1.25 billion gallons.  Any imbalance less than 2 percent of annual amount conveyed may be carried over from one year to the next. Mr. Smith presented a graph showing the monthly imbalance for the current water sharing agreement from November 2010 through October 2012. The proposed daily limit would increase to 12 mgd. The proposed annual limit would increase to 1.75 billion gallons. Benefits of Amended Agreement  Eliminates imbalance being reduced in shoulder months thereby improving utilization of water rights portfolio  Eliminates possibility of settlement below cost of treatment and without raw water  Provides compensation for use of excess treatment capacity  Reconfirms cooperation between water providers Mr. Smith presented information on the proposed Water Sales Agreement. This is in addition to the Water Sharing Agreement. The actual water demand will vary up to 5 million gallons per day. The rate includes the total cost of treatment. FCU will receive raw water back the month after treated water is delivered to FCLWD. Benefits of Water Sales Agreement  Increases regional utilization of existing infrastructure  Allows for FCU to recover previous investment in excess treatment capacity  Provides consistent incremental revenue stream for capital improvements Highlights from the discussion:  A board member asked for clarification on the daily limit of 5 mgd. Mr. Smith stated the daily limit is the buying capacity at the plant. All water will flow through the Utilities transmission system.  A board member inquired about the stipulation on the proposed amendment for carryover. Mr. Smith stated this is part of the proposed amendment on a monthly basis.  A board member asked about the water quality between the two plants. Ms. Voytko stated there is some chlorine residual in the water pushed back to the Utilities plant. There are some differences in water quality. Water Board Minutes June 20, 2013 6  A board asked for the number of individuals serviced by Fort Collins Utilities. Mr. Haukaas stated Utilities services approximately 34,000 taps and approximately 80,000 to 90,000 individuals. This is between one-half and two-thirds of the total population of Fort Collins. Discussion on the motion: There was no discussion on the motion. Vote on the motion: It passed unanimously. Drinking Water Quality and Consumer Confidence Reports (CCR) (Attachments available upon request). Ms. Voytko presented information on this item. These reports are presented to the board on an annual basis and this year’s report focused on the impacts from the High Park Fire. Ms. Voytko also presented the Consumer Confidence Report (CCR). The Environmental Protection Agency (EPA) has changed their rules regarding this report and it can now be transmitted electronically. Bill inserts are mailed to customers to inform them where to find this information. The printed reports are also available on request. Highlights from the discussion:  A board member asked if the drought was also considered in the report. Water Resources and Treatment Operations Manager Kevin Gertig stated water quality parameters can be an issue during a drought, as in examples from the 2003 drought. Mr. Gertig stated water quality has been maintained even during the recent fire events. Asset Management System (Attachment available upon request). Mr. Haukaas introduced the item and introduced Asset Manager Chris Parton. This item is presented to the board as an informational item. Mr. Parton presented information on the following topics:  Lifecycle Management Plans  Capital Improvement Planning  Where are we in the process? Highlights from the presentation:  Graphs outlining asset descriptions for age distribution, pipe material distribution, pipe diameter distribution, and risk score distribution  Water District Service Areas Map  Water Distribution System Risk Assessment Map  Strategic Levels of Service for Key Service Criteria (Risk, Service, and Finance) and the Key Performance Indicators Board Member Brown moved that the Water Board recommend to City Council to approve the Water Enterprise Fund amending the existing Intergovernmental Agreement for the Delivery of Potable Water with Fort Collins Loveland Water District and entering into a new Intergovernmental Agreement for the Sale of Potable Water with Fort Collins Loveland Water District as presented to the Fort Collins Water Board. Board Member Garner seconded the motion.