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HomeMy WebLinkAboutWater Board - Minutes - 02/15/2018DRAFT Meeting Minutes – February 15, 2018 Page 1 Fort Collins Utilities Water Board Minutes Thursday, February 15, 2018 Water Board Chairperson City Council Liaison Brett Bovee, 970-889-0469 Wade Troxell, 970-219-8940 Water Board Vice Chairperson Staff Liaison Kent Bruxvoort, 970-219-2832 Carol Webb, 970-221-6231 ROLL CALL Board Present: Chairperson Brett Bovee, and Board Members Lori Brunswig, Rebecca Hill, Jim Kuiken, Phyllis Ortman, John Primsky, and Jason Tarry. Board Absent: Vice Chairperson Kent Bruxvoort and Board Members Michael Brown, Steve Malers, and Andrew McKinley. OTHERS PRESENT Staff: Carol Webb, Katherine Martinez, Meagan Smith, Donnie Dustin, Jason Graham, Tanja Rauch-Williams, Mariel Miller, and Matt Fater. Members of the Public: Jake McKillip, Matt Mills, Kodi Bay, Samuel L. Less, Riley Breitenbach, Josh Braun, Skip Larson, Rich Stave, and Katrina Symist. Meeting Convened Chairperson Bovee called the meeting to order at 5:30 p.m. Public Comment None Approval of January 18, 2018 Board Meeting Minutes Board Member Jim Kuiken moved to approve the January 18, 2018 meeting minutes.  Board Member John Primsky seconded the motion.  Vote on the motion: It passed unanimously 7-0. Halligan Recommendation Memo to Council Staff recommended postponing approval of the board’s memo, due to a meeting with the U.S. Army Corps of Engineers in late February. City staff is also postponing a meeting with Council on the cost update. Board members agreed to postpone the memo and will plan to revise it at the March 15 regular meeting. Staff Reports Water Resources Division Monthly Report (Attachments available upon request) Report was included in the meeting packet. Staff attends quarterly to provide a verbal report. DRAFT Meeting Minutes – February 15, 2018 Page 2 Water Supply Vulnerability Assessment Update (Attachments available upon request) Water Resources Engineer Meagan Smith thanked the Water Board for supporting funding for the study, and provided a summary and update. Topics included water supplies, water supply planning policy, assessment funding, supply and demand vulnerabilities, key milestones, ongoing efforts and next steps. The study, which is on budget and on schedule, kicked off in August and staff has hosted workshops on climate change and literature review, study approach, hydrological approach, etc. Staff will meet with the consultant next week on hydrology models. Next steps include moving forward with scenario analysis, kicking off extensive modeling, and determine how to best use the information, which will be used in next Water Supply and Demand Policy in 2020. Discussion Highlights Board members commented on and inquired about various related topics including the water demand estimation tool used for the assessment and approaches to estimating demand in the City’s service area. A board member thanked staff for conducting this important study. Water Board members indicated they’d like to be updated on the study periodically; Ms. Smith stated she could return in June to report on scenario development. 2018 Raw Water Rental Rates and Delivery (Attachments available upon request) Water Resources Engineer Meagan Smith provided background information and an overview of the proposed 2018 rental rates and delivery charges. Topics included two pricing categories, typical rentals, delivery agreements, water types (early agricultural, agricultural, and multiple use), Rule 11 transfer fee, etc. The current process requires City Council approval annually and creates pricing uncertainty for the rental community. Staff proposes setting the formula-based and fixed rates and delivery charges for a three-year term: formula-based rate setting ensures City recoups costs, increases planning certainty for rental community, and reduces administrative burden to rental program. Ms. Smith asked for the Water Board’s feedback on the proposed changes. Discussion Highlights Board members commented on and inquired about various related topics including the possibility of promoting and actively soliciting water rentals because it generates revenue (staff indicated the priority is ensuring treated water customers receive the water they need, but promoting raw water rentals is a possibility in the future, although policy is to support agriculture and seek only to recover costs); rental revenue last year ($981,231); impact of proposed changes on water districts’ budgets; other options for reusable water; questions on the proposed $400 per acre-foot for fully consumable sources (down from the current $600) and whether staff could add language for the fee to be “$600 or less” based on an annual adjustment at the Utilities Executive Director’s discretion, to allow flexibility according to market conditions (staff will consult with City Attorney’s Office); a board member agreed the $400 reduced proposed free is reasonable and understood staff’s rationale. DRAFT Meeting Minutes – February 15, 2018 Page 3 Motion: Chairperson Brett Bovee moved that Water Board recommends City Council adopt the proposed formulas and fixed rates for the raw water rental rates and delivery charges for a term of approximately three years through March 2021, as proposed by Utilities staff. Discussion on the Motion: A board member inquired whether it is necessary to limit the term to three years. Staff suggested providing information to the Water Board on an annual basis on market rates. Revised Motion: Chairperson Brett Bovee moved that Water Board recommends City Council adopt the proposed formulas and fixed rates for the raw water rental rates and delivery charges ongoing with an annual report to the Water Board and if Water Board suggested changes to the fully consumable rate.  Board Member Jim Kuiken seconded the motion.  Vote on the motion: It passed unanimously 7-0. Staff Liaison/Water Resources and Treatment Operations Manager Carol Webb noted that staff is working with the board of North Poudre Irrigation Company (NPIC) to be less conservative with its allocations, because conservative allocations has resulted in NPIC giving away free water and therefore eliminating the possibility of recouping expenses. Other Business 2018 Work Plan Board members briefly discussed Mayor Wade Troxell’s emailed request that they include the topic “Wasteshed” to the “Wastewater” and “Regional and System-Wide Issues” sections of the Water Board’s 2018 Work Plan. Ms. Webb stated she would invite staff to provide an update on this topic at a future meeting. Staff Reports Legislative Update (Attachments available upon request) Staff Liaison Carol Webb addressed questions submitted by board members about the City’s 2018 Legislative Policy Agenda regarding such topics as instream and environmental flows, protecting the City’s water rights, the term “enterprise zone” (which staff stated is not used by the City), etc. Committee Reports None Future Agenda Review  The six-month City Council Planning Calendar is available at http://www.fcgov.com/cityclerk/planning-calendar.php. Discussion Highlights