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HomeMy WebLinkAboutWater Board - Minutes - 02/20/2014Water Board Minutes February 20, 2014 1 Fort Collins Utilities Water Board Minutes Thursday, February 20, 2014 Water Board Chairperson City Council Liaison Steve Malers, 484-1954 Wade Troxell, 219-8940 Water Board Vice Chairperson Staff Liaison Becky Hill, 402-1713 Kevin Gertig, 221-6637 Roll Call Board Present Chairperson Steve Malers, Board Members Becky Hill, Brian Brown, Liesel Hans, Andrew McKinley, Duncan Eccleston, Heidi Huber-Stearns, Phyllis Ortman, and Heidi Huber- Stearns Board Absent Board Member Lori Brunswig Staff Present Donnie Dustin, Susan Smolnik, Beth Molenaar, Kevin Gertig, Jason Graham, Link Mueller, and Harriet Davis Guests Brett Bovee, Eric Sutherland, Margaret Griffin, and Rob Graves Meeting Convened Chairperson Malers called the meeting to order at 5:30 p.m. Public Comment Margaret Griffin, who owns property adjacent to Boxelder Creek, expressed her concerns about the Boxelder Stormwater Authority’s plan to build a facility to hold stormwater in the event of a flood. Eric Sutherland also expressed his concerns about Boxelder Stormwater Authority’s potential plan. He feels the facility will destroy farmland. Regarding Ms. Griffin’s property, he would like a condemnation petition filed in court. Officer Elections Chairperson Malers nominated himself to serve another term as Chairperson. The board discussed postponing the elections since there is a vacancy on the board. Per the bylaws, the elections must take place during the February or March meeting. The board decided not to postpone the elections. Board Member Brian Brown moved for the nomination of Chairperson Malers for another term. Board Member Hill seconded the motion. Vote on the motion: It passed unanimously. Board Member Eccleston moved to nominate Board Member Hill as Vice Chairperson. Board Member Brian Brown seconded the motion. Vote on the motion: It passed unanimously. Water Board Minutes February 20, 2014 2 Approval of January 16, 2014 Minutes Board Member Hans moved to approve the minutes of the January 16, 2014, meeting. Board Member McKinley seconded the motion. Vote on the motion: It passed unanimously. * Board Member Brian Brown and Vice Chairperson Hill abstained due to their absence at the January meeting. Work Session Review Chairperson Malers provided a review of the topics discussed at the February Work Session:  Deputy City Attorney Carrie Daggett provided an overview of the board charter, meeting conduct, and review of the easement and variance process.  The City will hire a new Water Attorney. There are two finalists for the position.  Councilmember Wade Troxell shared information on the upcoming Boards and Commissions Function & Structure Review meeting. This is scheduled for Monday, February 24, 2014 at the Lincoln Center.  City Manager Darin Atteberry and Hiring Process Project Coordinator Ginny Sawyer shared information regarding the recruitment process for the new Utilities Executive Director. They also sought feedback from the board members.  There was also a discussion on the board’s input regarding the upcoming Budgeting for Outcomes (BFO) process. Staff Reports Monthly Water Resources Report Water Resources Manager Donnie Dustin provided this report for the agenda packet. Demands were average for the month of January. Poudre River diversions were at 80 percent of average. Snowpack is at 122 percent of average for the Poudre River basin, and 115 percent statewide. Staff is still dealing with the impacts of the 2012 High Park Fire; however, restrictions are not planned for this year. Mr. Dustin also gave an update on the North Poudre Irrigation Company (NPIC) withdrawal from the Halligan-Seaman enlargement project. Initial assessment of the impacts indicate the City’s costs for enlargement may increase by approximately $1 million, since reduction in overall project size would allow the enlargement to be accomplished by reconstruction of the existing dam rather than construction of a new dam downstream. Staff is hopeful there will be fewer environmental impacts with the withdrawal of NPIC. 2014 Raw Water Rental Rates and Delivery Charges (Attachments available upon request). Water Resources Engineers Susan Smolnik and Beth Molenaar presented information on this item. Mr. Dustin was also available to answer questions. Ms. Molenaar shared some background information on the item. Each year, City Council approves rates for the rental and delivery of the City’s raw water supplies. These rates are used to assess charges for agricultural use, for various contractual raw water obligations, and for raw water deliveries to other City departments. Water Board Minutes February 20, 2014 3 The City is a shareholder in several local irrigation companies. Usually, surplus water is available to rent to other water users. The shareholders are charged an assessment on each share. The City of Fort Collins pays approximately $1.3 million each year for assessments on their water rights. The three active rental markets include Colorado Big Thompson (CBT), North Poudre Irrigation Company (NPIC), and Water Supply and Storage Company (WSSC). CBT Ms. Molenaar presented a map showing the CBT Market Boundary. This water can be rented anywhere within the district boundary. The Utilities may have surplus CBT water available for rent this year. NPIC Ms. Molenaar presented a map showing the NPIC Service Area. The Utilities also expects to have surplus NPIC water that can be made available for rent. There are three types of NPIC water:  Early Agricultural (Ag) Water (delivered during a ‘free’ river and is only used for irrigation)  North Poudre Agricultural Water (delivered from North Poudre’s river decrees and only used for irrigation)  North Poudre Multiple Use Water (CBT water that can be used for many purposes) WSSC Ms. Molenaar presented a map showing the WSSC Service Area. This includes communities east of Fort Collins. This water is rented by the share. Shares will be offered via lottery as in past years. Reusable Water This includes water from Joe Wright Reservoir and Michigan Ditch. This water is used for road construction, industrial purposes, and natural areas. Raw Water Delivery Agreements These include City-owned facilities, such as parks and golf courses, and non-City entities such as Poudre School District and homeowner associations. The Utilities is reimbursed for the assessments to offset operational and administrative costs. Ms. Molenaar presented a table showing the Proposed 2014 Rental Rates and Delivery Charges. Highlights from the discussion:  A board member inquired about the cost per share difference with CBT water as reusable water. Ms. Molenaar stated CBT water is not reusable and can only be used one time.  Ms. Molenaar explained last year’s rental rates for the benefit of the new members. Since there was no early ag water last year, ag water was traded for multiple use water.  A board member inquired why NPIC withdrew from the Halligan-Seaman project if the City owns the majority of the shares. Mr. Dustin stated the City of Fort Collins does not own a majority of the shares and only owns approximately 36 percent.  Chairperson Malers reminded the board that staff will be on the conservative side when forecasting since there will be effects from the High Park Fire. The full effect of this event is not known yet. Water Resources and Treatment Operations Manager Kevin Gertig reiterated it will be hard to predict supply; however, staff has a diverse portfolio of resources and will continue to fine tune the modeling. Water Board Minutes February 20, 2014 4  A board member inquired about the article in The Coloradoan regarding the pine beetle outbreak in Larimer County, and if staff plans for these types of events. Mr. Gertig stated these kinds of events are taken into consideration.  Chairperson Malers reminded the board that the Northern Colorado Water Conservancy District (NCWCD) holds a Spring meeting to set the quota on how much water will be available. This meeting will be held in April.  Chairperson Malers invited a comment from an audience member. The individual inquired about the cost per acre-foot if the ag swap was permanent. Mr. Dustin stated the swap occurred because staff felt there would be a shortage on CBT water last year. This type of swap is not needed on a permanent basis. Also, both the Water Supply and Demand Management Policy and Plan Fort Collins support water for agricultural use.  A board member inquired about the timing for early ag water and if it is during planting time. Ms. Molenaar stated this occurs in the May and June time frame. Vote on the motion: It passed unanimously. State of Colorado CDPHE Nutrient Grant Appropriation (Attachments available upon request). Water Reclamation and Biosolids Manager Jason Graham and Capital Projects Engineer Link Mueller presented information on this item. The purpose of this item is to appropriate grant funding in the amount of $1,080,000 in the Wastewater Fund. The grant funds will be used for the planning, design, and construction of a portion of the Nutrient Removal Improvements required for the Drake Water Reclamation Facility’s (DWRF) South Process Train. The North Process Train has already been updated. State awarded the grant to the City in July 2013:  1 of 12 grants issued in the State.  $80,000 for Planning Grant  $1,000,000 for Design and Construction Grant Planning Grant:  Chemical Phosphorus Removal o Pilot removal in stabilized sludge just prior to dewatering o Goal to minimize Phosphorus recirculation  Develop Nutrient Engineering Report o Continue local Carbon evaluation o Beer Waste Phase III is underway Mr. Graham shared some background information on the Brew Waste Study. Colorado Wastewater Treatment Plants operate under Regulation (Reg.) 85. Reg. 85 establishes requirements for organizations holding a National Pollutant Discharge Elimination System (NPDES) permit. Since DWRF had high levels of phosphorus and nitrogen, community sources of carbon were sought that could be introduced in the wastewater treatment process to help reduce these levels. The addition of carbon from brewery waste has removed both phosphorus and nitrogen. Board Member Brian Brown moved that the Water Board recommend the proposed rental rates and delivery charges be adopted by City Council. Board Member Ortman seconded the motion. Water Board Minutes February 20, 2014 5 Mr. Graham presented some photographs of the Carbon Piloting Phase III. Mr. Mueller presented a site map of the Drake Water Reclamation Facility and a map showing the proposed South Process Train Improvements. He also presented a drawing of the proposed layout. Funding for South Process Train Improvements:  2014 Funding o 2014 Appropriation - $481,000 for South Process Train Design o Nutrient Removal Grant - $1,000,000 o Existing Replacement Funds - $2,000,000  Proposed 2015 Funding o $5,400,000 request in the 2015/2016 BFO offer o Regulatory based o CDPHE expectation in continuation of Water Reclamation Facility Improvements Highlights from the discussion:  A board member inquired about the content of the brewery waste. Mr. Mueller stated this is primarily spent grains, yeast, and sugars from the bottom of the tanks. This is high-strength waste compared to municipal waste, and is material that is normally land-applied.  A board member asked for clarification on the available funds. Mr. Graham stated staff is asking City Council for appropriation of the grant funding. The grant money is unanticipated revenue and grant funds awarded under this program must be expended by May 31, 2016.  A board member inquired about the future use of ultraviolet (UV) to replace the current use of chlorine gas for disinfection. Staff stated this may be part of a future BFO offer.  A board member inquired about electrical upgrades to the Mulberry Water Reclamation Facility (MWRF) and the improved energy efficiency. Mr. Mueller stated planned improvements to the South Process Train will improve MWRF’s energy efficiency. Vote on the motion: It passed unanimously. Other Business Chairperson Malers reminded the board members of the Public Trust Doctrine Initiative regarding Colorado water rights. Mr. Malers would like the Water Board to take a position on the initiative. This may be discussed at a future meeting. The board members and staff discussed cancelling the March meeting due to Spring Break; however, there is an agenda item that is time-sensitive. The Water Supply Shortage Response Plan is an action item for the board and is being presented to City Council in April. Therefore, this item must be presented at the March meeting. Chairperson Malers requested a follow-up memo regarding the Boxelder Stormwater Authority item mentioned during the Public Comment portion of the meeting. Staff will follow-up on this item. Board Member Brian Brown moved that the Water Board recommend adoption of the Ordinance for appropriation of Unanticipated Grant Revenue into the Wastewater Fund for the Drake Water Reclamation Facility's Nutrient Grant Project for South Process Train Improvements on First Reading. Vice Chairperson Hill seconded the motion.