Loading...
HomeMy WebLinkAboutWater Board - Minutes - 04/15/1977V Is 40 WATER BOARD Regular Meeting April 15, 1977 - 3:00 P.M. Present: Ward Fischer Raymond Anderson Bernard Cain, Jr. Karl E. Carson Henry Caulfield Norman Evans Ronald Fulkrod Harvey Johnson Everett Richardson James Waltz Robert L. Brunton Absent: None Staff members present: Hilgenberg, Krempel, Lewis, and Liquin Out -of -City Utility Requests 1. Mr. Roger E. Krempel, Water Utilities Director, stated that James K. Murray was requesting a water service for his land adjacent to Bingham Hill Reservoir, and he would be tapping onto the transmission line. He further stated that this was a very routine request, and the administration recommended approval. Board member Caulfield made a motion, seconded by Bernard Cain, to recommend to the City Council to approve this water service. The Chair put the motion, which was unanimously adopted. 2. Mr. Krempel stated that the Wheeler Realty Company has been developing the Brown Farm, and the 1st, 2nd, and 3rd filings are completed. They have an option to acquire about 100 acres on East Overland Trail and north of Drake Road outside the limits of the blue line and the City limits. This area has serious water pressure problems with the exception of about 15 acres in the northeast corner of the tract. By allowing water and sewer service to this 15 acres, the entire Brown Farm development can be tied together with streets and water and sewer service. The City has a final draft of an agreement which states that there will be no development in the water pressure problem area until the current system analysis has been completed. The Planning and Zoning Board has recommended approval of this annexation to the City Council on the basis that there be no immediate demands for development except for the 15 acres. The City Council has had the first reading of the annexation ordinance and the second reading is scheduled subject to a satisfactory agreement. Board member Cain made a motion, seconded by Henry Caulfield, to recommend to the City Council that based on an appropriate agreement, this annexation be approved. The Chair put the motion, which was unanimously adopted. A ti L 3. Mr.. Charles Liquin, Water Project EngLncer, stated that a property owner on West Mulberry is requesting water service on the West Mulberry water line. He has never been a member of the West Mulberry Water Users Association, but this request will be handled as if he were a member and he will be connected when the new main is available. This will be handled administratively under the same terms of the West Mulberry Water Users Association agreement. Consider 1977 Water Supply Before opening the discussion on rental of surplus water for 1977, Chairman Fischer requested comments from City Manager Brunton as to the administration's viewpoint on 1977 water needs. City Manager Brunton stated that the administration felt that there is no reason for rationing and that the City should lease the surplus water. Mr. Krempel stated that taking the 5 year period from 1971 through 1975, he found that on an average, the City rented a little more than 3,000 acre feet of water. He further stated that this year, 4,000 acre feet of water could be rented without hurting the City. Chairman Fischer and Board member Carson commented on conservation practices. Board member Caulfield discussed the possibility of a drought in 1978 and what the City's policy should be in terms of the possibility of a drought next year. Chairman Fischer stated that the latest guess of the Conservancy District is that if things remain as they are throughout their system, than next year the quota would be no more than 60% in the CBT. Board member Johnson had a question on the amount of reserve that is projected. Chairman Fischer stated that maybe the Board's action should be to look towards a reserve of about 4,000 acre feet and authorize or suggest the leasing of surplus waters above that reserve. Chairman Fischer stated as the unanimous consensus of the Water Board, that the Board has agreed that we do not require restrictions, but we should urge conservation, that we rent out some water, and that we are taking the figures that have been prepared by the administration and requesting a review to make sure that everything has been taken into account and that we have a reserve of approximately 4,000 acre feet. If necessary, adjust the amount of water to be rented to reflect an appropriate reserve. A further consensus of the Water Board, following what Board member Caulfield said and the other comments, that between the administration and the City Attorney, notice will be given to all people who are leasing waters so that whatever waters are available that are now leased might be available to the City next year in anticipation that we will very much need it. Consider 1977 Rental Rates on Raw Water Mr. Krempel stated that the rental rates of raw water surplus to the needs of the City has been considered quite deeply and because of the drought year situation, it would be totally inappropriate to do anything that looked like it was a gouge to the agricultural interests. It is the staff's recommendation -2- that for 1977, the rates stay very close to the p roviou. years rental.'rates. Ile further stated- Chat if the Water Coard deslrcd, he would ll.ke to bring; back to the Board a more fair and reasonable rental policy for consideration in 1978. The renting of Horsetooth Water was considered first. An indepth discussion was held as to how the water was rented and how priorities were established. The Water Board was advised that on January 15, the three Southside Ditches were offerred 1,000 acre feet. City Attorney March has termed that offer as a legal commitment. The City also holds 209 acre feet and 65 acre feet by contract on rent back agreements. The other surplus Horsetooth [dater is rented to old customers in the basin at the rental rate established. Board member Anderson inquired as to how the water was allocated and whether a bidding process might be instituted. Mr. Krempel stated that the City would plan to rent to old customers on a percentage basis. Board member Anderson asked how the City established what the rental price might be. Mr. Liquin advised that the $8.00 fee per acre foot was set on the basis of the City paying an annual assessment of $5.00 for 0.7 acre feet. Mr. Anderson replied that this may be too cheap. Mr. Krempel advised the Board that the Conservancy District allows us to buy excess water for future needs on the basis that we won't gouge the agricultural district on rental rates on a rent -back basis. Board member Caulfield reminded the Water Board that he had used the word gouge at a previous meeting and in no way would he advocate any gouging but that there is a principal involved regarding the price one farmer sells to another farmer. Mr. Krempel suggested that the administration would keep track of this data and have the information for 1978 rental. Board member Johnson stated that he felt the recommendation was reasonable, because these farmers had taken this water on years when we did not rent it all. We should stay with the local customers and try to be reasonable with them. Board member Anderson suggested that the City might advertise to find out what the farmers are willing to pay for it. It might be more equitable that way. City Attorney March told the Water Board that they had to go one way or the other. They had to plan to build customers who would take water in good years and bad or decide to clean up in the bad years. The City has gone in the past that we would rent to people and give them priority. This would be a bad time to change that policy. Discussion continued on the theory of adverising and Board member Johnson reminded the Water Board that "such a practice would be contrary to all the principals of petting along with the farmers. We built up a good relationship, now let's not destroy it, just because we have a chance to gouge somebody. Lets plan this thing reasonable." Board member Caulfield mentioned the recent auction sale on North Poudre stock and inquired if there was anyplace where water rental was conducted on a bidding process. City Attorney March stated that this process was used on the board of North Poudre. -3- 0 Board member Carson stated that in order Co keep this from l,ettfiv out of hnnd on a bidding situation, that we should cover our costs adequately and try to stabilize the market. Following a discussion relative to interest on investment, the question of what a farmer would pay to rent from another farmer again came up. Information on this was requested for next years consideration. Chairman Fischer stated that the administration has recommended that the 1977 assessment price for Horsetooth Water be $8.00 per acre foot. Board member Carson made a motion, seconded by Everett Richardson that the Water Board recommend to the City Council a rental charge of $8.00 per acre foot for Horsetooth Water. Chairman Fischer stated, "We are not saying how much is going to be rented because you have work to do yet to make sure we keep this 4,000 feet and probably if Harvey's concerns are correct, then you are going to rent something less than you think you are right now." Board member Caulfield stated, "If we go along with this figure this year that it is in contemplation that the administration will make a thorough study of this matter. I will interpret my vote as being contingent upon that." The Chair put the motion, which was unanimously. The Water Board next considered the rental price of North Poudre Irrigation Company stock. Mr. Liquin stated that the requests from North Poudre customers have been unrealistic and are two and three times what the same individual requested last year. He stated that he felt it is necessary to rent in 1977 based more on the 1976 customers than on the 1977 requests, and this will be reduced. Chairman Fischer stated that the water will then be leased to old customers and proportion it down if necessary, in light of the reserve of 4,000 acre feet. Board member Richardson made a motion, seconded by Bernard Cain, to recommend to the City Council to approve the rental rate of $55.00 per share for North Poudre Irrigation Company water. The Chair put the motion, which was unanimously adopted. Board member Anderson stated that particularly with this one, we could find out what the market is doing and probably get a little better feel. . Board member Carson made a motion, seconded by Everett Richardson to recommend to the City Council a rental rate of $120.00 per share for Pleasant Valley and Lake Canal water. The Chair put the motion, which was unanimously adopted. Board member Fulkrod made a motion, seconded by Raymond Anderson, to recommend to the Council a rate of $7.00 per share for Arthur Irrigation Company water. The Chair put the motion, which was unanimously adopted. M I 11 • Board member Carson made a motion, seconded by Ronald Fulkrod, to recommend to the Council. to approve the renGml ratc•n of $55.00 per r;hare for 1mr1mer Comity Canal No. 2 and $80.00 per share for New Mercer Irrigation Company. The Chair put the motion, which was unanimously adopted. Discuss 1978 Water Rental Board member Caulfield made a motion, seconded by Everett Richardson, that the Water Board requests the City administration for the balance of this year to make a study of the water rental situation with a view to finding out what the water rental situation is outside of our relations with the farmers, getting whatever data is available to indicate what water transactions go for and how they go and so forth with a view to developing a system for our consideration, we are not adopting now, just for our consideration of having a water rental system starting next year that would be based on the going market for the renting of water in the Northeastern Colorado community. The Chair put the motion, which was unanimously adopted. Policy on District Customer Changeover Mr. Krempel stated that as the City grows, it has taken over areas that are served by the districts. Frequently, the City has mains in the same streets as the districts have mains, generally of higher capacity and frequently with higher pressures. Since these people are in a district and are paying a mill levy, and since they have paid high tap fees or high plant investment fees, there is little or no incentives for them to pay our raw water requirements or a second utility investment fee. This gives us the dilemma of quite a number of properties in the City limits with City water available and no change -over incentives. This has been reviewed quite thoroughly. lie stated that we are suggesting to adopt a policy in these particular instances that the raw water requirements will be waived for existing developed land and up to 1/2 acre of any tract of land to be served. Chairman Fischer stated, "I don't know that your recommendation is wrong, but here is what bothers me about it. The whole purpose of our water requirement or cash in -lieu -of is to let growth pay its own way. We have known that we are going to have a problem with these water districts, and tried to solve it and haven't been able to; but I can envision large areas coming in without the water requirement, and the rest of us, the people that are now in the City, are subsidizing that if we do not make the water charge. Should our Water Board Utilities Sub- committee give this some thought." After some discussion, this was referred to the Utilities Committee for a report. Consider Revisions to Ordinance No. 96, 1972 Chairman Fischer stated that this is a change in wording that allows the administration to do many of the things that now come to the Water Board. Board member Caulfield inquired, "Shouldn't there be some kind of criteria about how the Water and Sewer Utility is going to make up .its mind administratively on these matters?" -5- Mr. Krempel advised the Board that he thought, if the Board would concur with this idea, a policy would be developed for this, and this would be an approved policy that would have some criteria, that when it gets to a certain size or a certain level then we bring it back to the Water Board and the Council. Administratively, the staff would handle the small and petty stuff that the staff has been bothering the Board with and then when it gets to some substantial size, it would be brought back to the Board. Board member Caulfield made a motion, seconded by Ronald Fulkrod, that the Water Board recommend to the City Council to approve the revisions to Ordinance No. 96, 1972, and the administration will develop the criteria. The Chair put the motion, which was unanimously adopted. Subcommittee Reports Mr. Krempel stated that the only bill left that the Board has an interest in is Senate Bill 4 and that is still alive. The rest of the bills that the Board had an interest in are dead. Staff Reports Mr. Krempel stated that Dr. Norman Evans has been reappointed to the Water Quality Control Commission. He advised the Board of the tentative schedule for Joe Wright Reservoir. He stated the final plans have been submitted to the Bureau of Reclamation for review and approval, to the Forest Service, and to the State Engineer. Sometime between May 3 and May 17, this project will be advertised. At this time, the City tentatively plans to open bids on June 2 and tentatively plan for the bids to go to the Council on June 7. The first financing program and rate increase information is planned to go to the Council at their first meeting in May. They will probably ask for the Water Board's review on May 13, and this will all be taken up by the Water Board for recommendation for final Council action at their second meeting. He further stated that the Water Fund presently has enough available uncommitted funds to get into the first year's construction. It isn't necessarily wise to spend all of those available funds and the final program may suggest some borrowing for the first year's construction. The application is still in the Department of Interior office, and has not been signed by the Secretary. He stated that they did have a good reception before the Subcommittees when they were in Washington and the Subcommittees did speak favorably upon the City's request. The City does have practically all of the necessary permits except for the site permit for the Forest Service. Mr. Brunton stated, "The action that we are asking the Council to take on Tuesday night is that we are practically saying that with or without the federal government we are going to start sometime in the middle of June or the end of June on the Joe Wright Reservoir if we have all our permits in order. Because we cannot continue to wait for this project and if we lose the fiscal 1978 financing, we would be losing two years, and we would be much better off financing the whole project privately then. So the reason why we haven't talked to you or to the Council about financing yet was we don't know what mix, private money versus Bureau or Reclamation money, we are going to have in this project. Hopefully by the time we have our next Water Board meeting and the May City Council meetings, we will have our mix and a better handle on the whole financing scene." -6- Mr. Krempel stntcd that we are participating in n rese,irch project having to do with the water consumption on urban lawns. Board member Richardson stated that maybe McCall -Ellingson & Morrill should meet with the Engineering Subcommittee on the Joe Wright Reservoir Project. This meeting was set up. Mr. William Hansen spoke to his proposal for Engineer Services for in -lieu -of water rights fee. Chairman Fischer stated that possibly what Mr. Hansen is proposing is something that should be considered administratively. Mr. Krempel stated that he had hoped to come back to the Water Board in six months for further consideration of the cash in -lieu -of value. This could be left flexible and if the staff cannot get the inforamtion ready in six months, 'then they could call on Mr. Hansen to help. Mr. Krempel stated that he had notice that the new stream standards are up for oversight hearings on April 29. This information is available to anybody that is interested. The City will be responding to this after it has been studied. Mr. Brunton stated that if the bids on the Joe Wright Reservoir construction are opened on June 2 and are tabulated, it might be nice for the Board to have a special meeting on June 3 to go over the tabulation of the bids. Adjournment There being no further business, the meeting adjourned. Secretary -7-