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HomeMy WebLinkAboutWater Board - Minutes - 10/18/1991WATER BOARD MINUTES October 18, 1991 3:00 - 4:50 p.m. Water and Wastewater Utility Conference Room 700 Wood Street Members Present President Neil Grigg, Vice President Tom Sanders, Ray Herrmann, Mark Casey, MaryLou Smith, Tom Brown, Terry Podmore, Paul Clopper, Dave Frick Staff Rich Shannon, Mike Smith, Dennis Bode, Linda Burger, Ben Alexander, Jim Clark, Andy Pineda, Wendy Williams, Tom Gallier, Molly Nortier Guests Loren Maxey, City Council Liaison John Bigham, Agency Coordinator, Northern Colorado Water Conservancy District (NCWCD) Dorothy Huff, Observer, Larimer County League of Women Voters George Reed, Citizen Observer Faye Kirk, Citizen Observer Members Absent Dave Stewart, Tim Dow Minutes Water Board Secretary Molly Nortier pointed out the following corrections: The first sentence of the first paragraph on p. 10 should read: "A meeting was held on August 13th." On p. 13 under Legislative & Finance, the second sentence should begin with "Linda Burger said." The minutes of September 20, 1991 were then approved as corrected. Undate• Northern Colorado Water Conservancy District John Bigham announced with sadness that the District's recently retired president Gordon Dykeman, died at the end of September. His last meeting was on Sept 1lth. "He had been on our Board for 36 years, and in that time had only missed 11 meetings," he said. The new member of the District Board, appointed to a four year term, is Mike Applegate, a civil engineer from Fort Collins. The new president of the parent district is Bill Bohlender; the vice president is John Caneva. The sub -district president is W.D. Farr, and the VP is Everett Long. He went on to say that Carter Reservoir, at this point, stands at 52.8% of active capacity; Horsetooth Reservoir is at 57.2%, and Granby is down to 57.3%. The combined total Water Board Minutes October 18, 1991 Page 2 percentage for the CBT system is 56.6%. "We are a little under the 60% we were holding for awhile," he said. Shadow Mountain Res. has been lowered by 8 ft., so the Parks Service and Forest Service can install a boat dock, and try to control the growth of the water weeds that are growing in abundance there. "Basically everything is going quite well," he continued. With the warm, dry weather, a considerable amount of O&M work is being done this fall. Dr. Grigg asked if the District has received any feedback on the regional study. Mr. Bigham understands that it has been received quite well. There are a few corrections coming in, he said. Demand Management Committee Recommendations A Summary Report, the Proposed Resolution and a proposed ordinance, as well as the DMC minutes, were included in the Water Board packets. Jim Clark pointed out that the summary report does a good job of going through all the measures that were considered. The Committee met for about 8 months, and concentrated on various demand management options other than metering. Of the 24 measures considered, half were recommended, while the other 12 were not for various reasons. Some of the measures were tabled, at least for now, which means they could be re -considered at some future time. In fact, it was recommended that consideration of demand management choices be an evolving process. He said there are a number of measures that were selected which deal with City Departments' water use. The Committee felt that the City should set an example. Improving public education by targeting specific areas, was another recommendation. There were other recommendations such as zero interest loans. The Utility already uses the zero interest loan program when the replacement of service lines is necessary to install a meter for someone (usually in an older home) who has volunteered. The Conservation and Public Education Committee of the Water Board will meet with staff to determine what other measures should be included in the loan program, Mr. Clark related. He went on to say that the summary report explains the items in the resolution that are being proposed. The resolution, along with Water Board recommendations, will go before Council at some future date. Mike Smith suggested that the resolution be the first topic for discussion, then the one page code change. MaryLou Smith, one of the members of the DMC, encouraged Water Board members to comment on items related to the resolution, but she also pointed out that the Committee, made up of Water Board and City Council members, has worked very hard "to hammer things out" in such a way that it was the Committee's belief that Water Board and Council could support Water Board Minutes October 18, 1991 Page 3 it. Furthermore, Water Board has been represented by three members, and the entire Board has periodically reviewed the Committee's actions during the several month process. Terry Podmore moved that the Water Board approve the proposed resolution. Ray Herrmann seconded the motion. Tom Sanders is concerned that the City is moving further away from the 1-in-50 drought capability because Anheuser-Busch is requesting additional water for their operations. Dennis Bode pointed out that currently our average annual demand is about 30,000 Ac-ft. The safe yield of our supply system would meet approximately a 40,000 Ac-ft. demand based on that 1- in-50 drought criteria, "so we do have a cushion right now," he explained. "Have you checked the safe yield with Busch on line with their projected increase?" Tom Sanders asked. "We have kept up with that as we've come along," Mr. Bode replied. MaryLou Smith recalled that we took that into account when we did our projections 3-4 years ago. "The 40,000 Ac-ft that I mentioned, is the safe yield of our supply system today," Dennis Bode explained. "As a result, there is an additional 10,000 Ac-ft. of demand that we could take on without running into problems," he added. Dr. Sanders was particularly concerned about peak day demands in the summer months. Mike Smith explained that when A-B began operations, they started out with 4200 Ac-ft. About a year ago they said they wanted to increase their demand by 1250 Ac-ft, and to do that they provided us with cash equivalent to about 3,000 Ac-ft of water. "As far as making projections, as they increase their demand, they are going to give us water," Mr. Smith assured Dr. Sanders. When we are using water more efficiently, with meters and with additional demand management measures, it will affect return flows, Dave Frick began. "Does that impact any water rights we have, since we are committed to a certain return flow?" Dennis Bode said he doesn't think it will be a problem since it will be a very gradual process. In general the return flow will still be a larger percentage than what the agricultural return flows would have been. "We can consider that in the transfers we do," he added. Mr. Bode acknowledged that the more efficient people are in watering their lawns, the less return flow there is from lawn irrigation. In the transfer cases, that is becoming more of an issue. "For future transfers we will have to look at that issue," he said, but he doesn't think it will affect any past transfers. Neil Grigg had a question about Section 3 in the resolution where staff is directed to implement 12 measures in order to meet the stated goals. "Has staff done a financial impact statement on those items, or is this something the Utility can absorb?" Mike Smith responded that staff hasn't determined the financial impact yet. He expects there will be some impact with some of the Water Board Minutes October 18, 1991 Page 4 measures, "but we haven't put a dollar figure on it yet." There will also be some impact on other City departments, he added. Dr. Grigg observed that although all of the measures are excellent things to do, it will require additional time for staff to monitor all of them. Tom Sanders asked what a "qualified water conservation measure" is under the zero interest loan program. Staff hopes that the Conservation and Public Education Committee of the water Board will help to determine that. MaryLou Smith explained that there wasn't a firm agreement on the part of the Demand Management Committee to have this be a part of the resolution. The compromise was that zero interest loans would be part of the resolution, but the Water Board and staff would decide what would qualify. Obviously it is very loose, she said. "We will be considering it on a category by category basis over the next few years," she concluded. Paul Clopper was curious about one part of the recommendations. "What has been the reaction from other City departments about the installation of meters and charging the departments for their water use?" he asked. Mike Smith pointed out that most of the City facilities are already metered. The City Manager has set up a program where, over the next 5 years, the City is going to begin pledging more money each year to pay for that water use; eventually water use will be tied into the budget. As for the reaction of City departments to this plan, "they seem to think that as long as they have money in the budget to pay the bill, they aren't that concerned." MaryLou Smith returned to the question of whether staff has put money aside for the demand management recommendations. She said the Committee did look at the cost of the leak detection program and determined that it would require a couple of people. The Committee also discussed, with each of the measures, whether the return would be enough to justify the greater expense and additional staff time. "That was the major reason that the Committee deferred a number of the measures," she pointed out. Ms. Smith went on to say that the big issue is if the Council approves the resolution, will they also be willing to raise the rates to pay for some of these measures. Mike Smith recalled times in the past when the Council passed a policy, and then due to changing circumstances, decided not to fund some provisions in the policy; or sometimes they said, "we passed this so we'll go ahead and do it." He pointed out that all of the measures will probably appear in various areas of the budget, so the Council will make a decision one way or another at that time. He cautioned that just because it appears in a resolution, doesn't mean it's a pre -approval by the Council to do anything you want to do. It still must go through the budget process, he emphasized. The question was called. The Board voted unanimously to approve the proposed resolution recommended by the Demand Management Committee. Water Board Minutes October 18, 1991 Page 5 Approval of Code Change Mike Smith explained that the code change is the result of a problem that arose because of the volunteer metering program. There have been a couple of instances where customers who volunteered for a meter decided that they wanted it taken out. If anyone inquired about the possibility of removing a meter when people volunteered, staff informed them that the meter could not be removed. Mr. Smith said there has only been one person who is adamant about having her meter removed. When staff informed the DMC about this, they agreed that once a meter is installed the City should not remove it. The City Attorney's office then revised the code as follows: A residential customer who is receiving unmetered water service may elect to have a meter installed by and at the expense of the utility, upon application to the utility for such installation. Any such election by a residential customer to install a water meter shall be permanent and the residential customer may not elect in the future to return to unmetered water service. Ray Herrmann moved that the Water Board recommend adoption of the code change. Paul Clopper seconded the motion. The Board unanimously approved the motion to amend the code. Interim President Neil Grigg thanked MaryLou Smith, Terry Podmore and Tom Brown for serving on the Demand Management Committee. He recognized the considerable effort that was involved in coming up with the final recommendations. He pointed out that once the City Council approves the resolution, the Committee will disband. Videot=s of Proposed Heritage Corridor and Poudre Basin Footage The first videotape on the proposed Heritage Corridor, was produced by the City to use as an educational tool for promoting the concept. The video showed the area being considered and gave background on the process since the time when the upper Poudre River was designated Wild and Recreational. It also explained the process for designation and what will occur if it is approved by Congress. The next video was the uncut version of footage taken from the air of the Poudre Basin to the confluence of the Platte River. Loren Maxey flew the photographer over the area to get a perspective of the river basin for the Heritage Corridor video. Mr. Maxey pointed out areas of interest. Neil Grigg said that the Utility has numerous videotapes taken through the years, which have great educational value. He suggested creating a library of tapes that the Water Utility could combine with other items of historic significance. For example, he said, it would be helpful at the University if these could be checked out for educational purposes. Linda Burger related that Water Board Minutes October 18, 1991 Page 6 the Utility is in the process of putting together an internal library. There is no reason the Utility couldn't have items that could be checked out, she said. Amendment to City/District Water Service Agreement Each Board member received a cover letter and a copy of the Addendum to the Agreement for Sale of Treated Water. Mike Smith explained that in December of 1990, the City entered into an agreement with the Fort Collins -Loveland Water District for the sale of treated water to the District. Since entering into that agreement, a couple of issues have arisen that make it necessary to modify the agreement. Point No. 1 When the agreement was signed, the District anticipated they would be able to construct the necessary improvements to their system to take delivery of water from the City before the summer of 1991. Because of delays in equipment delivery and land acquisition, the District was not able to complete construction of the necessary improvements until just recently. As a result, the District can not take delivery of the amount of water specified in the agreement and has requested that the agreement be modified to reflect such. The amended paragraph 5 (a) in the addendum eliminates the minimum amount of water to be purchased by the District for this year and lowers the peak day flow from 2 mgd to I mgd. The cost of water remains the same. 5. The District shall pay the City all water delivered to the District in accordance with the following provisions: a. For the period of January 1, 1991, to December 31, 1991, the District will pay the City fifty cents ($.50) per 1,000 gallons of water delivered. The peak day delivery of water from the City to the District will not exceed one (1) million gallons per day during this time period. Tom Sanders asked what the City is charging for producing the water. Mike Smith first made it clear that Fort Collins -Loveland is providing the raw water. The Utility is treating the water and transporting it via pipeline to them, he said. Treatment costs are between 22 and 25 cents per 1,000 gallons, plus the per rata share of the transmission cost and the use of plant capacity. "That's how we arrive at the $.50 charge." Every year in the fall, the District informs the City how much water they want for the next year. Mr. Smith pointed out that as they use less water and have a higher peak, they pay a higher rate. If they use more water they pay a lower rate. Tom Sanders also wanted to know if there is anything in the agreement that says the Utility can hold back on the District's delivery if the City is in a bind for treated water capacity. Mr. Smith explained that the City has made the commitment to provide the District with that amount of water. "It's up to the Utility, just as we would accommodate more growth, to make certain that there is enough capacity," he stressed. 0 Water Board Minutes October 18, 1991 Page 7 Point No. 2 As the District was giving thought to how they would operate their new improvements and handle the delivery of water from the City, they became concerned about how closely they could predict the peak day flows specified in the agreement. Presently there is not any provision in the agreement which addresses what happens if the District exceeds the predetermined peak day flow. The new paragraph 5 (f) in the addendum addresses this issue. More specifically, if water deliveries to the District exceed the predetermined peak day flow, the rate paid by the District will be re -calculated and will apply to all water delivered to the District for that calendar year. f. If the peak day delivery to the District exceeds the peak day amount specified by the District in accordance with paragraph 5.b. above, then the rate paid by the District shall be re -calculated using the higher rate factor from Table A. The increased rate shall apply to all water delivered to the District for that entire calendar year for which the rate has been re -calculated. Mike Smith provided an example of this modification. "If the District is using 400 million gallons and their peak day is 3 mg, and for one day they hit 3.5 or 3.1, for the whole year they have to go up to the next rate." On the other hand, this leeway provides them with the option of saying they will take 2 million, even though they may need 3 million. "They can always play it safe." The potential problem for the Utility is that the District may underestimate their peak, "so we have to assume almost the worst case," he concluded. Point No. 3 After reviewing the new EPA coliform and lead rules, it became apparent that the agreement was not specific enough regarding water quality monitoring and reporting requirements. The new paragraphs 7, 8, and 9 in the addendum are intended to clarify responsibilities for water quality monitoring and reporting. Mike Smith explained that with the new federal regulations, the Utility wanted to be very clear about who is responsible for monitoring, reporting and public notification. "We didn't want to be caught in a position of having to do any of that for the District in their system," Mr. Smith stressed. "When we deliver water to them, after it goes past the delivery point, it's theirs and we're not responsible for anything that happens to it after that, regarding monitoring, or notifying the public if they have violations, etc. Ray Herrmann moved that the Water Board accept the amendments to the agreement, and MaryLou Smith seconded the motion. Tom Sanders wanted to make sure that the District's water would not be coming back into our system. Mr. Smith assured him that check valves have been installed, the water is metered, and Water Board Minutes October 18, 1991 Page 8 the Utility has monitoring equipment at the connections. He mentioned that there are also a couple of smaller connections. The question was called. The vote was unanimous to approve the amended agreement. Election of Officers Neil Grigg has been serving as the interim president of the Board since Henry Caulfield retired from the Board in July. The Board needs to elect a president and vice president to comply with the Bylaws which state that officers must be elected by December 31st each year. Neil Grigg opened nominations for president. MaryLou Smith nominated Neil Grigg, and Paul Clopper nominated Tom Sanders. MaryLou Smith moved that nominations cease, and the Board concurred with a unanimous vote. The candidates were asked to leave the room during the discussion and vote. MaryLou Smith presided while Dr. Grigg was out of the room. Those making the nominations were asked to state their reasons as to why their candidates should be elected. The group decided it wasn't necessary to hear comments from the candidates themselves. After a short discussion, Neil Grigg was elected as president of the Board. President Grigg asked for nominations for vice president. Ray Herrmann nominated Tom Sanders. Mark Casey nominated MaryLou Smith. She respectfully declined the nomination, and thanked Mr. Casey for his nomination. Paul Clopper moved that nominations cease, and the Board agreed with a unanimous vote. The Board unanimously elected Tom Sanders to serve as the vice president of the Board. Staff Reports A. Treated Water Production Summary Dennis Bode reported that the water use in September was about 4% above what had been projected. Precipitation was .85 inches for the month, which was below normal. Mr. Bode noted that as of the end of September, water use was 93% of average, which is an indication of some of the timely rains we have received, and, hopefully, also a result of some of our conservation efforts. Tom Sanders pointed out that at Colorado State they are converting entirely to metric, and he suggested that the water production figures be presented in metric as well. Staff said they will try to provide some metric figures for comparison. B. Tour of Meadow Springs Ranch Board members received a copy of a memo from Technical Projects Manager Tom Gallier inviting them to participate in a tour of the Meadow Springs Ranch scheduled for Thursday, October 24th, weather permitting. This time was inconvenient for most members. Five members selected Friday, November 1st as an alternate date, again 0 Water Board Minutes October 18, 1991 Page 9 weather permitting. The group will meet at the Service Center at 12:00 noon. Box lunches will be provided. They were asked to confirm with Molly Nortier. C. Reminder of Water and Economics Symposium Neil Grigg reminded the Board of the Chamber of Commerce Water and Economics Symposium on Monday October 21st at the University Park Holiday Inn, from 9:00 a.m. to 1:30 p.m. Molly Nortier announced that 6 members of the Water Board and 5 staff people plan to attend. Committee Reports Water Supply Committee Chairman Mark Casey reported that the Committee met at 2:00 prior to the Water Board meeting and discussed Halligan Reservoir. He said that he understands fairly clearly the proposed option payments and the estimated construction costs of about $18 million. "What I don't have a good handle on is what the economic benefit of building is going to be," he stated. He and Dennis Bode plan to meet and discuss that aspect, and they will also discuss the question of the transferability of our interest in the agreement with the North Poudre Irrigation Company. He wants to determine "if we decide down the road not to participate in the project, can we sell that interest to another party?" He announced that the next Water Supply Committee meeting will be at 1:30 (note: a half hour earlier) prior to the November 15th Water Board meeting. Legislative and Finance Committee At the last meeting staff briefed the Board on the need for a resolution that would allow the Utility to qualify for the revolving loan program with the Water Resources and Power Development Authority for the new wastewater treatment plant. Mike Smith reported that the Legislative Committee of the City Council has met and has asked staff to prepare letters to send to our state representatives asking them to support the resolution when it comes up in the legislature this year. Conservation and Public Education Committee Chairperson MaryLou Smith believes that the Committee needs to decide what it is mandated to do on the part of the Water Board. The Committee will be waiting to see what happens with the Demand Management Committee's proposed resolution when it goes before Council. "If that doesn't fly, the DMC will continue to work on it," she predicted. The Conservation and Public Education Committee has been put on hold while the DMC has grappled with demand management issues. Once the resolution is adopted and is in place, the Water Board committee will meet to determine what their role should be. One of their tasks will be to provide a forum for any proposed zero interest loans that are Water Board Minutes October 18, 1991 Page 10 considered. She also presumes that the Committee will play an advisory role to staff in terms of implementing some of the measures that will be undertaken when the resolution is adopted. Paul Clopper also suggested that the committee may want to look into working with staff on the archives situation discussed earlier, in terms of public education. Also, in terms of public education, Neil Grigg pointed out that over the last 3 to 4 years, there has been an "explosion" on the part of the public in their interest in water. As a result of that, next March at the CSU campus, a children's water festival is being planned, patterned after a very successful children's event held in Greeley this year. Dr. Grigg has been involved in the CSU project. Another indication of interest in water education is a state-wide group called the Colorado Water Education Foundation which has been organized out of the Denver Chamber of Commerce. Ray Herrmann and Paul Clopper also pointed out that the local Environmental Fair, in which the Water & Wastewater Utility was heavily involved, was a very impressive and well attended event. Engineering Committee Mike Smith mentioned that once the regional plan is out, that may be something the Engineering Committee will want to look at. Other Business President Grigg said he was pleased with the attendance at the meeting today. Each Water Board member received a copy of the Boards and Commissions attendance policy in their packets. Dr. Grigg reminded Board members to contact the Water Board secretary if they will not be able to attend a meeting. Adjoum Since there was no further business the meeting was adjourned at 4:50 p.m. Water Board Secretary