HomeMy WebLinkAboutWater Board - Minutes - 02/19/2015Fort Collins Utilities Water Board Minutes
Thursday, February 19, 2015
Water Board Chairperson City Council Liaison
Steve Malers, 970-484-1954 Wade Troxell, 970-219-8940
Water Board Vice Chairperson Staff Liaison
Becky Hill, 970-402-1713 Carol Webb, 970-221-6231
PRESENT ON ROLL CALL: Chairperson Steve Malers, Vice Chairperson Rebecca Hill,
Board Members Brett Bovee, Michael Brown, Alex Maas, Andrew McKinley, and Phyllis
Ortman.
Board Absent: Brian Brown, Duncan Eccleston, Heidi Huber-Stearns, Lori Brunswig
OTHERS PRESENT:
Staff: Jon Haukaas, Donnie Dustin, Susan Smolnik, Mark Kempton, Eric Potyondy, Dan Mogen
Guests: Grey Dye, Seth Tourney, Will Welch
Meeting Convened
Steve Malers called the meeting to order at 5:30 p.m.
Public Comment
None
Approval of January 15, 2015 Minutes
No changes were recommended.
Motion: Board Member Phyllis Ortman moved to approve the minutes of the January 15,
2015 meeting. Board Member Michael Brown seconded the motion. It passed unanimously,
with one abstention by Rebecca Hill due to her absence at the January meeting.
Introduction of City Staff
Mark Kempton was introduced as the new Water Production Manager for Fort Collins Utilities.
In this role, Mr. Kempton is primarily responsible for the day-to-day operations of the two water
treatment facilities. Mr. Kempton previously directed the City’s stormwater master planning
efforts. He has been in the new role for about one month. It was noted that the year 2014 saw the
largest number of new City hires to date, due to retirements, promotions, and position vacancies.
The large number of new staff means that knowledge transfer and successful on-boarding will be
crucial for Utilities in the coming years.
Board Officer Elections
Chairperson Steve Malers and Vice Chairperson Rebecca Hill indicated a desire to continue to
serve as the Water Board’s leaders. Motions: Board Member Brett Bovee moved to re-
appoint Steve Malers as chairperson of the Water Board. Board Member Alex Maas
seconded the motion. It passed unanimously. Board Member Phyllis Ortman moved to re-
appoint Rebecca Hill as Vice Chairperson of the Water Board. Board Member Andrew
McKinley seconded the motion. It passed unanimously.
Water Board Minutes
February 19, 2015
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Staff Reports
(Attachments available upon request)
Monthly Water Resources Report: Water Resources Manager Donnie Dustin reported that water
demands for Fort Collins served by Utilities were 96% of projected amounts in January. Mr.
Dustin also stated that the 2015 water demand projections have been reduced from those in
previous years to reflect the fact that actual water demands have consistently been less than
projections in several recent years. Last year, actual water demands were 90% of projections.
The new water demand projections are reflective of the most recent five-year actual water
demand numbers. At this point in the season, the water supply is looking good for 2015. The
snowpack is only slightly below average, the Colorado-Big Thompson (CBT) reservoirs are near
capacity, and the Poudre River streamflow remains above average for this time of year. Further
data and information are provided in the memo “February 2015 Water Resources Division Staff
Report” dated February 10, 2015 from City staff.
2015 Raw Water Rental Rates and Delivery Charges
(Attachments available upon request)
Water Resources Engineer Susan Smolnik provided a PowerPoint presentation on this agenda
item, which is an annual recurring item that comes to the Water Board for consideration. There
are two categories of water rates that must be set for the 2015 calendar year: (1) raw water
rentals which represent surplus water supplies within the City’s water rights portfolio that can be
rented to farmers and other water users, and (2) raw water delivery charges which reflect annual
assessment fees (delivery charges) associated with water rights that have been provided to the
City for development.
Background information was provided on each type of water right held by the City, including
North Poudre Irrigation Co., Colorado-Big Thompson, and Water Supply and Storage Co. water
rights. In addition to these company and district rights, the City rents reusable water from Joe
Wright Reservoir and wastewater plant effluent, primarily to gravel pit operations. This year,
Ms. Smolnik recommends that formulas be adopted as the basis for the water rates instead of a
fixed amount, because of several reasons: (1) water supply conditions (snowpack, water right
allocations) are not known until April and setting a fixed rate now may not reflect the unit water
rates ($/acre-foot) charged as assessments; (2) the CBT is implementing a transfer fee for all uses
of City shares outside of North Poudre Irrigation Company (NPIC) and this transfer fee is not
precisely known at this time; and (3) formulas may be adopted as the basis for setting annual
water rates instead of the need for City Council action each year. In addition to the PowerPoint,
Ms. Smolnik provided an agenda item summary to the Water Board prior to the meeting with a
further details and tables of past water rates.
Discussion: A board member inquired about the timing of the water rates. Ms. Smolnik and Mr.
Dustin responded that requests for water rentals start after January 1 each year, and all requests
are received by March 15. Rental water deliveries start after the CBT water allocations are set
around April 15. The board member also asked about CBT transfer fees eventually influencing a
change in City water rentals and water sources. Ms. Smolnik clarified that some type of transfer
fee has always been assessed on CBT transfers from agricultural to municipal uses, but these
transfer fees could be offset by municipal transfers back to agricultural water uses. In the past,
this gave the City an incentive to rent water to agriculture so as to offset CBT transfer fees.
Under the new rules, there are no longer any offsets and the Northern Colorado Water
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February 19, 2015
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Conservancy District has changed how the transfer fee is calculated. For 2015, the fee for
transfers from NPIC to the City is $29 per unit, which is calculated as the municipal rate of
$30.50 minus the NPIC agriculture rate of $1.50. Depending on the water supply quota set by the
District for each CBT share, the transfer fee unit price might range from $29 to $58 per acre-
foot. The City does not expect to make many CBT rentals to agriculture in 2015 because of these
high transfer fees. A board member inquired who rents the City’s water. Ms. Smolnik and Mr.
Dustin responded that roughly 90% of the rentals go to agricultural water users. The board
member asked whether the increasing value of water and the changing water markets in northern
Colorado should be considered when using formulas for the calculation of water rental rates. It
was also discussed that the amount of annual water rentals and the interest level in City water
rentals is highly dependent upon the water supply available in a given year.
Motion: Board Member Alex Maas moved that the Water Board recommend that the
formulas and fixed rates for the 2015 raw water rental rates and delivery charges as
proposed by Utilities staff be adopted by City Council. Board Member Michael Brown
seconded the motion. It was approved unanimously.
2014 Annual Report
(Attachments available upon request)
The 2014 Annual Report was finalized by Chairperson Steve Malers to include some format
changes and inclusion of public comments made throughout the year.
Motion: Board Member Phyllis Ortman moved that the Water Board approve the 2014
Annual Report. Vice Chairperson Rebecca Hill seconded the motion. It passed unanimously.
Waiver of Water Plant Investment Fee (WPIF) for Temp Irrigation Taps
(Attachments available upon request)
Water Engineering & Field Services Operations Manager Jon Haukaas provided context for this
item. There is an assumption that connecting to the City water supply system is a permanent
action, such that the connecting entity will desire to have City water service indefinitely. Water
Plant Investment Fees (WPIF) reflect this assumption and are intended to provide sufficient
capital funds to pay for building capacity into the water system to accommodate new
connections. Recently, there have been City projects that require a temporary connection to the
City water system to establish, but not maintain, native plants. These projects include restoration
activities and landscaping at parks. The WPIF financial burden on these projects is substantial
for a temporary use of the City water system and because it is a City use, the fee would amount
to paying for a service that has already been funded by ratepayers. Also, the City water system
has sufficient excess capacity to allow for such temporary uses without placing any burden on
existing users or the water system. A waiver of the WPIF is proposed by staff for City projects
that are temporary and in the interest of the public. Mr. Haukaas provided an agenda item
summary and a draft ordinance to the Water Board prior to the meeting.
Discussion: A board member inquired if such waivers for temporary uses might eventually be
difficult to provide as the water system capacity was reached. Mr. Haukaas responded that all
waivers would be subject to the discretion of the Utilities’ director, as written in the draft
ordinance. A board member inquired if City staff considered a pro-rated rate instead of a waiver
for temporary water uses. Mr. Haukaas responded that the waiver would be only for City projects
that are intended to provide a public good. He also stated that a recent WPIF (fee) study showed
that the costs or benefits of the WPIF are recouped in the first five years after the connection is
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February 19, 2015
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made. A board member inquired about instances when the landscape project would need to be
delayed, possibly due to flooding. Mr. Haukaas responded that Fort Collins Utilities and the
Water Board might grant an additional waiver to the project on a case-specific basis or the
project could be restarted if the delay was substantial. A board member inquired about the use of
raw water at these landscaping projects instead of treated water. Mr. Haukaas replied that not all
projects have access to raw water supplies, but that raw water is utilized when available. The
board member also asked about the language of the motion and whether it should reference the
specific draft ordinance provided to the Water Board. Assistant City Attorney Eric Potyondy
recommended that the Water Board not approve the specific language of a draft ordinance
because revisions to the ordinance were likely to come as it is finalized.
Motion: Board Member Phyllis Ortman moved that the Water Board recommend that City
Council approve an Ordinance to change City Code in order to allow the Executive
Director of Utilities to waive Water Plant Investment Fees for a temporary connection to
the water system to supply water for the establishment of native vegetation on certain City
projects.
Board Member Andrew McKinley seconded the motion. It passed unanimously.
Stormwater Escrow Policy
(Attachments available upon request)
Civil Engineer Dan Mogen of the Stormwater Department provided a PowerPoint presentation.
The Water Board was also provided, prior to the meeting, an agenda item summary, draft
ordinance, and several draft certification and receipt documents for residential and commercial
properties. City Code currently has language allowing for the City to grant a Certificate of
Occupancy (CO) if given an “acceptable assurance” that the necessary stormwater facilities will
be constructed as soon as possible. For some properties, cold temperatures and frozen ground do
not allow for completion of all stormwater facilities at the site even if all other aspects of the
project have been completed. The City has historically accepted escrow payments without any
formal written policy, fee, or timeline for completion of the stormwater projects. This agenda
item is to formalize and improve upon this historical policy. Mr. Mogen thought that about 10%
of development projects require this type of escrow for delayed completion of stormwater
facilities, with about 180 escrow accounts in 2014 and 25 escrow accounts so far in 2015.
Additional details of this agenda item were provided in the summary and related materials.
Discussion: A board member inquired about the two payment structures provided in the
PowerPoint presentation. Mr. Mogen and Mr. Haukaas clarified that the formulaic payment
structure was for multi-lot development sites while the fixed payments were for individual lots.
A board member inquired about the purpose of visual inspections by City staff. Mr. Mogen and
Mr. Haukaas responded that an engineer certification would still be required at the site, but that
the City visual inspection would be an informal check on the completion of planned stormwater
facilities at the site.
Motion: Board Member Michael Brown moved that the Water Board approve the
Stormwater Escrow Procedure, and recommend that City Council approve the Ordinance
amending Chapter 26 of City Code to clarify conditions under which a development may
defer stormwater installation requirements to obtain a Certificate of Occupancy for up to
180 days by providing certain escrows as assurance of completion.|
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