HomeMy WebLinkAboutWater Board - Minutes - 07/28/2005City Council Liaison
David Roy
Staff Liaison
DeEtta Carr 221-6702
Fort Collins Utilities Water Board Minutes
Thursday, July 28, 2005
Water Board Chairman
Ted Borstad 226-6158
Secretary
Leslie Mooney 416-2703
Roll Call:
Board Present:
Chairman Ted Borstad, Steve Balderson, Eileen Domfest, Jim Finley, Johannes Gessler,
Gina Janett and Doug Yadon
Absent:
Board members John Bartholow, Rami Naddy, Debra Sweetman and Reagan Waskom
Visitors:
Beth White
Staff. -
Dennis Bode, Terri Bryant, Roger Buffington, DeEtta Carr, Jim Hibbard, Brian Janonis,
Leslie Mooney and Mike Smith
Meeting Convened
Chairman Borstad called the meeting to order at 3:05 p.m.
Public Comment
Chairman Borstad introduced Beth White, a student at Colorado State University, who attended
to observe the meeting.
Approval of Minutes of May 26, 2005
Board member Doug Yadon noted that he and John Bartholow had been listed in both the
"Present" and "Absent' sections of the meeting and that they were both absent on May 26`h
Board member Johannes Gessler made a motion, seconded by Board member Jim Finley to
approve the minutes with the correction. Yeas: 6; Nays: 0; Abstain: 1.
Water Board Meeting Minutes
July 28, 2005
Page 2
Out of City Water Service Request
Roger Buffington, Utilities Development Review Manager, stated the application has been
withdrawn for the moment because the Planning and Zoning department has determined that the
property is eligible for annexation.
Plant Investment Fees — Todd Cristiano
Todd Cristiano of Redoak Consulting Company stated that the City hired his firm to do an
analysis on water, wastewater and stormwater plant investment fees. He explained that a plant
investment fee is a one time capital charge assessed to new customers who incur growth of the
utility. A supportable plant investment fee is defensible, equitable, easy to understand and
implement and is compliant with Colorado legislation. He listed two methodologies used for
determining fees as the equity buy in method, and the hybrid method. The equity buy -in
methodology was used for water plant investment fees by requiring the new customer to buy into
the same equity position as existing customers adjusted for inflation. The hybrid methodology is
used to calculate the wastewater and storm water plant investment fees. This methodology takes
into account the utility's existing asset base as well as growth related capital improvements.
Mike Smith, Utilities General Manager, stated that since the plant investment fees haven't been
reviewed for seven years they wanted an objective perspective so they hired a consulting firm to
run the numbers. He stated that the philosophy used in these methods was to recover the costs
of growth of the utilities. The alternative was either growth pay its own way or the rate payers
subsidize growth.
Chairman Borstad stated that the methodology is for the most part a math process and that the
Board should make a motion on whether they feel the method was appropriate and to not make
any political recommendations based on the results.
Board member Gina Janett made a motion to endorse the policy of growth paying its own way
and support the methodology that uses equity in the system plus necessary future capital costs as
a basis for determining fees. Board member Doug Yadon seconded the motion. The motion
passed unanimously.
Stormwater Financing Fees — Terri Bryant
Terri Bryant, Utilities Finance & Budget Department Manager, updated the Board on storm water
financing fees.
Mike Smith explained that there was some discussion with Council about whether or not to raise
the rates and it was determined that it was not necessary at this time.
Water Board Meeting Minutes
July 28, 2005
Page 3
Board member Yadon made a motion, seconded by Board member Gessler to endorse keeping
the storm water rates at the present level but also endorse re-evaluating the rates on an
appropriate basis. The motion passed unanimously.
Committee Reports
There were no reports.
Staff Reports — Ouestions
There were no questions.
Other Business
Feedback on Water Board Retreat - Vice Chairman Doug Yadon suggested integrating the six
month City Council agenda with the Water Board's work plan to produce a Water Board six
month planning agenda. He also suggested that either the Chairman or Vice -Chairman attend
Council meetings when an item that the Board acted upon is being discussed.
Future Agenda Items
Safe Drinking Water Director's Award - DeEtta Carr, Water Board Liaison, stated that this item
will be on next month's agenda.
Water & Electric Board Combination - Chairman Borstad requested some basic information on
the duties of the Electric Board.
Adjournment
Board member Gessler made a motion, seconded by Board member Domfest to adjourn. The
motion passed unanimously. The meeting adjourned at 4:52 p.m.
Leslie Mooney, Water Boar ecretary