HomeMy WebLinkAboutWater Board - Minutes - 10/20/20161
Water Board Minutes
October 20, 2016
Fort Collins Utilities Water Board Minutes
Thursday, October 20, 2016
Water Board Chairperson City Council Liaison
Rebecca Hill, 970-402-1713 Wade Troxell, 970-219-8940
Water Board Vice Chairperson Staff Liaison
Brett Bovee, 970-889-0469 Carol Webb, 970-221-6231
ROLL CALL
Board Present: Chairperson Rebecca Hill and Board Members Kent Bruxvoort, Steve Malers,
Phyllis Ortman, Andrew McKinley, Jason Tarry, Michael Brown, Duncan Eccleston, Lori
Brunswig and Alexander Maas.
Board Absent: Vice Chairperson Brett Bovee
OTHERS PRESENT
Staff: Carol Webb, Katherine Martinez, Lance Smith, Kevin Gertig, Chris Donegon, Randy
Reuscher, Liesel Hans, Susan Strong, Renee Davis.
Members of the Public: Eric Sutherland, Seunga Min, Brytani White
Meeting Convened
Chairperson Hill called the meeting to order at 5:30 p.m.
Public Comment
Eric Sutherland spoke about the Boxelder Stormwater Authority facility on the east side of I-25
and concerns such as ability to pay off the loan for that facility, validity of an Authority board
member, and the equivalent of a sales tax for water, among other issues.
Approval of September 15, 2016 Board Meeting Minutes
Board Member Kent Bruxvoort moved to approve the September 15 meeting minutes.
Board Member Michael Brown seconded the motion.
Vote on the motion: It passed unanimously, 8-0 with 2 abstentions.*
*Board Members Lori Brunswig and Alexander Maas abstained due to their absence at the
September meeting.
Staff Reports
None. A board member inquired about rates and how demand of 105% of average translates to
revenue; the board member stated the connection is unclear and asked if it means Utilities would
receive 5% more revenue than average. Ms. Webb replied that Utilities Strategic Finance
Director Lance Smith may have that information and that staff can include it in the materials for
the November meeting packet.
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Municipal Separate Storm Sewer System (MS4) Permit Renewal
(Attachments available upon request)
Environmental Regulatory Specialist Susan Strong summarized the requirements of the City’s
MS4 renewed permit (effective July 1), deadlines, and implementation schedule. The Colorado
Discharge Permit System (CDPS) permit #COR 090050 authorized discharges from MS4 to state
waters and requires implementation of control measures to prevent/reduce discharge of
pollutants. Control measures include public education, illicit discharge detection and elimination,
construction sites, post-construction stormwater management in new development and
redevelopment, pollution prevention/good housekeeping for municipal operations.
Ms. Strong reported that timeline compliance deadlines extend through July 2021 and that staff
is on track to meet the deadlines for new requirements. Staff will return to Water Board at a later
date to discuss municipal code changes. The Environmental Regulatory Affairs Division recently
received awards from the Water Environment Federation: National MS4 and Green
Infrastructure Awards, Gold Level - Program Management, Gold Level - Innovation.
Discussion Highlights
Board members commented on and inquired about various topics, including stormwater criteria,
the Stormwater Master Plan (http://www.fcgov.com/utilities/what-we-do/stormwater/master-
plan) and whether the budget contains enough money for master plan projects. Ms. Strong stated
there is time to request money in the next budget cycle for a new containment facility if
necessary. A board member inquired about permit boundaries; the boundaries are the same as the
city limits. The new permit is a general permit and consists of 63 pages outlining requirements.
Advanced Meter Fort Collins (AMFC) Use of Data
(Attachments available upon request)
Water Conservation Manager Liesel Hans summarized how Advanced Meter Fort Collins data is
used for water conservation programs and shared information about the customer web portal.
Advanced meter (“smart grid”) infrastructure (AMI) was implemented in Fort Collins thanks to a
Department of Energy grant; the City chose to install advanced water meters at the same time.
Meter installations occurred between 2012 and 2014 (65,000 electric meters and 33,000 water
modules) and the customer web portal became available in 2014.
Promised benefits for customers include improved information about high and irregular use, help
with resource conservation goals, early water leak detection, enhanced voluntary programs; the
old system consisted of one meter reading per day; the meters now take 24 readings per day.
Water AMI and Data Uses include continuous consumption monitoring (residential leak
detection and outreach service). Customers with a non-zero water use in a 24-hour period are
assumed to have a leak and are contacted if they use 60 gallons per hour or more; staff has
contacted more than 1,200 customers this year (reasons for continuous consumption have ranged
from continuously running toilets to sprinkler system problems and pipe bursts, etc.). Monitor
My Use, the online customer portal for water & electricity, offers customers information on
patterns of use.
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Discussion Highlights
Board members inquired about various related topics, including sprinkler leaks, effects of the
sprinkler audit program, and outreach to customers with continuous consumption.
2017 Utility Rate Ordinances
(Attachments available upon request)
Utilities Strategic Finance Director Lance Smith summarized the Water, Wastewater, and
Stormwater ordinances for proposed 2017 rates that will be on the City Council agenda for first
and second readings on November 1 and 15. No changes are proposed for any of the three utility
Plant Investment Fees (PIFs) in 2017.
A 5% increase is proposed for the Water Fund in 2017. This rate increase is driven by the need to
increase available reserves for near-term capital requirements and to increase operating revenues
to cover debt service required to achieve the 10-year prioritized capital improvement plan (CIP).
Examples of 2017 projects include Poudre Canyon raw water line assessment, distribution
system renewals, and Water Quality Lab improvements.
A 3% rate increase is proposed for the Wastewater Fund for 2017. Operating revenues for the
Wastewater utility continue to be below budget. The 3% increases in both 2017 and 2018 in the
City Manager’s Recommended Budget (CMRB 2017-18) are expected to address this continued
revenue shortfall and put this fund on a path to provide sufficient available reserves to complete
the 10-year CIP without the need to issue new debt. Examples of 2017 projects include
replacement of centrifuges and biosolids improvement.
A 3% rate increase is proposed for the Stormwater Fund in 2017. Staff originally proposed a 5%
rate increase in the CMRB 2017-18. The 3% rate increase would increase the debt capacity of
the Stormwater Fund by $8 million to $17 million, allowing the initial buildout of the stormwater
infrastructure to be on a 15-year completion schedule beginning in 2017. Examples of 2017
projects include Magnolia Street Outfall Phase 1, North East College Corridor Outfall Phase 3.
Neighboring communities are planning 2017 water rate increases of 9% (Loveland), 21%
(Longmont), 8% (Boulder), 6% (Colorado Springs), and 3% (Greeley). West Fort Collins Water
District is planning an 8% water rate increase; Fort Collins Utilities provides treated water to this
district.
Discussion Highlights
Board members inquired about and commented on various topics, including the revenue shortage
(possibly due to customers installing more water efficient toilets, etc.), messaging to customers
regarding rate increases, and quantifying risk factors related to insurance discounts for
customers. Utilities Executive Director Kevin Gertig commented on critical reasons for capital
improvement projects, such as the expectation of more erratic precipitation and longer periods of
drought in the coming years. He suggested that Water Engineering and Stormwater staff present
the master plan at a future meeting to explain the plan and highlights of 150 current projects. A
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board member commented that a drought assessment study would not get funded if the water rate
were approved at a 3% increase instead of 5% (the additional 2% increase would generate
enough revenue to fund the Water Supply Vulnerability Assessment, a Utilities inspector, and a
Water Conservation Coordinator). A board member inquired about affordability for customers.
Another board member spoke in favor of a 5% rate increase due to the dangers of not budgeting
money for vital capital improvements, and stated that a vulnerability assessment is crucial to
replace information that is 30 years old.
Staff recommendations:
A 5% rate increase proposed for the Water Fund in 2017.
A 3% rate increase proposed for the Wastewater Fund in 2017.
A 3% rate increase proposed for the Stormwater Fund in 2017.
Board Member Phyllis Ortman moved that the Water Board support the 2017 water
increase of 5% as presented by staff.
Board Member Duncan Eccleston seconded the motion.
Vote on the motion: It passed unanimously, 10-0.
Board Member Duncan Eccleston moved that the Water Board express support the 2017
3% wastewater increase as presented by staff.
Board Member Phyllis Ortman seconded the motion.
Vote on the motion: It passed unanimously, 10-0.
Board Member Duncan Eccleston moved that the Water Board support the 2017 3%
stormwater increase as presented by staff.
Board Member Phyllis Ortman seconded the motion.
Vote on the motion: It passed 9-1 with Board Member Lori Brunswig dissenting.
Reason for Nay vote: Due to difficulty in getting questions answered by staff regarding rate
increases, and not being treated well when asking questions about rate increases and requesting
information about projects. Utilities Executive Director Kevin Gertig thanked Ms. Brunswig for
her comments and expressed concern about the issues she raised; he stated he’s listening, vowed
to research her concerns, and make changes.
Other Business
Water Resources and Treatment Operations Manager Carol Webb reported that staff has decided
to postpone a presentation to City Council regarding the cash-in-lieu/raw water requirements
update item; she stated staff is reviewing the methodology they applied, and thanked board for
substantive feedback, which led to staff realizing they need to reevaluate options they will
present to the City Council Finance Committee in January and City Council in February.
A board member inquired about Mr. Sutherland’s public comment about one-third of customers
not paying taxes for City services. Ms. Webb replied that 6% of what customers pay in their
utility bills goes to General Fund services, and explained that Mr. Sutherland was referring to the