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HomeMy WebLinkAboutWater Board - Minutes - 09/19/2019WATER BOARD REGULAR MEETING September 19, 2019, 5:30-7:30 p.m. 222 Laporte Avenue, Colorado River Community Room 09/19/2019 – MINUTES Page 1 1. CALL TO ORDER 5:32 p.m. 2. ROLL CALL • Board Members Present: Michael C. Brown, Jr. (Chairperson), Jason Tarry (Vice Chairperson), Jim Kuiken, Steve Malers, Andrew McKinley, Phyllis Ortman, John Primsky, Greg Steed • Board Members Absent - Excused: Brett Bovee, Randy Kenyon, Kent Bruxvoort • Staff Members Present: Theresa Connor, Katherine Martinez, Donnie Dustin, Eileen Dornfest, Kevin R. Gertig, Linsey Chalfant, Lance Smith, Randy Reuscher, Mark Kempton, Matt Fater, Shane Boyle, Link Mueller, Carol Webb, Pete Iengo • Members of the Public: Rich Stave, Rob Graves 3. AGENDA REVIEW None 4. CITIZEN PARTICIPATION None 5. APPROVAL OF MINUTES • Chairperson Brown asked for a motion to approve the July 18 minutes. Board Member Steed moved to approve the July 18 minutes. Board Member Ortman seconded the motion. Vote on the motion: it passed unanimously, 5-0 with three abstentions. Vice Chairperson Jason Tarry, and Board Members Steve Malers and John Primsky abstained due to their absence at the July meeting. 6. NEW BUSINESS a. Staff Reports (Attachments available upon request)  Financial Monthly Report (meeting packet only)  Water Resources Monthly Report (no presentation, staff available for WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 2 questions) Discussion Highlights: Board members commented on or inquired about various related topics including the amount of treated water purchased by Fort Collins-Loveland Water District (FCLWD) and North Weld County Water District, revenue impact and whether this an anomaly (Strategic Finance Director Lance Smith replied that the City sold 5 MGD to FCLWD; it’s not an anomaly; North Weld hasn’t been taking advantage of the agreement, so that might be an anomaly; Water Resources Manager Donnie Dustin explained there’s more sales in water sharing; the monthly report was prepared by an intern and some data might be incorrect; he’ll look into it and report back to the board); raw water (Mr. Dustin stated that the City and FCLWD have a sales agreement; if it becomes unbalanced FCLWD pays at end of month).  Halligan Water Supply Project Quarterly Report Special Projects Manager Eileen Dornfest summarized the update and asked the Water Board to forward questions to the chairperson so that she and Special Projects Manager Linsey Chalfant incorporate answers into the discussion on this topic at the October 3 Water Board work session. Discussion Highlights: Board members commented on and inquired about various related topics including the project’s new cost estimate and increased costs due to delays in the U.S. Army Corps of Engineers permitting process (Ms. Dornfest explained that other projects are experiencing similar project increases; over time, staff has been able to gain more certainty about costs and the latest cost estimate is more detailed; Utilities Deputy Director Carol Webb stated that the cash-in-lieu fee will increase in 2020, then won’t increase for two years; looking at anticipated water demand over the next 50 years, for the most part Utilities will be able to adequately recover the costs over time; a board member’s suggestion to put pressure on the U.S. Army Corps of Engineer to deliver the Environmental Impact Statement (EIS) in a more timely manner (EIS was expected to be released in mid-2019); a board member question on why the Corps is taking so long to complete the EIS on what is a relatively small project involving 8,000 acre-feet of water.  Executive Director Quarterly Update Utilities Director Kevin R. Gertig summarized recent Utilities projects (renewing aging infrastructure; Drake Water Reclamation Facility (DWRF) digester lid replacement; Spring Creek stream rehabilitation; Laporte Avenue stormwater renewal, etc.) and offered congratulations to staff on several recent awards (to Water Production Manager Mark Kempton and his Water Production Division team for Best Tasting Water awarded by the Rocky Mountain Section of the American Water Works Association; to Ramon Arguello who has worked at DWRF for 40 years and is recipient of the Rocky WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 3 Mountain Water Environment Association (RMWEA) Plant Operations Award; to Jason Graham and the Water Reclamation and Biosolids Division team for winning the RMWEA Biosolids Management Award for sustainability achievements related to Meadow Springs Ranch; to Jason Graham and Gregg Stonecipher for serving on the winning water/wastewater trivia contest team at the event; and to Special Projects Manager Link Mueller who was a technical author who contributed to the project converting the facility from chlorine gas to UV disinfection. Upcoming projects include the Downtown Stormwater Improvement Plan, which City Council will discuss at its September 17 work session). Discussion Highlights: Board members commented on or inquired about various related topics including Proposition DB and whether Utilities will take a position on it (staff replied that various mechanisms and tools exist to ensure the City maintains its water rights; staff would research whether the proposition fits Utilities’ needs and if not, staff would not state a position; staff will check with staff at City Manager’s Office and report back to Water Board.) b. Regular Items 2020 Utility Rates (Attachments available upon request) Utilities Strategic Finance Director Lance Smith summarized the proposed rates that staff will take to City Council on October 15 for first reading and November 5 for second reading: 5% increase in electric rates by 5%, 2% stormwater increase to raise operating revenues modestly to increase the enterprise’s debt capacity; 0% increase in rates for to the Water Fund and Wastewater Fund with variation by rate class. Wastewater rates contain small rate class specific adjustments; staff has seen an increase in wastewater treated at the plant and slight decrease in single family use, which is reflective of the trend of overall decrease in use; didn’t increase in 2019 and 2020, but forecasting a 2% increase on average. Customers will receive information with their first bill in January and information will be available at www.fcgov.com. Discussion Highlights: Board members commented on and inquired about various related topics including the need to clarify the messaging on rate increases and suggestion that staff give context, such as annual increase per customer totals; elevator speech on why rates are increasing; whether customers in different rate classes receive different messages (staff confirmed they do); messaging on Water WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 4 Supply Requirement increase due to excessive use (The proposed change to the Water Supply Requirement increases the cost of 1 acre-foot of required raw water from $17,300 to $21,500, or 24%); whether there will be an increase in 2022 (Mr. Smith replied he expects an increase; Ms. Webb mentioned developers installing water taps of inadequate size at the time of construction and then later having to pay for larger taps); impacts of a hypothetical scenario in which a homeowners association (HOA) chooses to not pay the excess water use fee and lets the grass die, and it’s not counted as revenue; whether staff is examining landscaping plans as part of development review process to ensure adequate water will be supplied (staff confirmed outreach to HOAs and developers); Rigden Farm landscaping (staff stated the HOA decided to install drought-tolerant landscaping and is therefore allowing the grass to die as recommended by staff as the most cost effective and efficient preparation for the transition); upcoming Council discussion on changes in the community’s look as high-water landscaping is phased out and replaced by drought tolerant landscaping. Board Member Malers moved that Water Board recommend to City Council approval of the proposed 2% increase to Stormwater as well as the rate class adjustments for Water and Wastewater for 2020, as proposed by staff. Board Member Ortman seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 Discussion after the vote: A board member commented on similarities between Connecticut and Colorado water prices; moved from Connecticut because monthly water bill went from $100 per month to $1,000 per month over 25 years. Mr. Smith replied that rates will not increase by more than 5% at a time. Another board member commented on past Southern California Edison bills; understood that at one point in summer the monthly bill would be as high as $400. Agreement Regarding the Use of the Munroe Canal (Attachments available upon request) Water Resources Manager Donnie Dustin summarized the history of the canal and the proposed agreement between the City of Fort Collins, through Fort Collins Utilities, and multiple other parties regarding operations of the Munroe Canal that supplies water to Utilities via the Pleasant Valley Pipeline (PVP). The agreement outlines roles and responsibilities among these parties that have been vague since PVP operations started in 2003 and will greatly improve future operations, and also includes reasonable payments to the North Poudre Irrigation Company for their operational efforts. WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 5 Discussion Highlights: Board members requested clarification on a few details of the agreement. Board Member Ortman moved that the Water Board recommend City Council adopt the resolution authorizing the City Manager to execute an agreement between the City of Fort Collins, North Poudre Irrigation Company, the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County Water District regarding operations of the Munroe Canal Diversion Structure. Board Member Kuiken seconded the motion. Discussion on the Motion: None Vote on the Motion: it passed unanimously, 8-0 • Budget Offers & Procurement Items (Attachments available upon request)  Off Cycle Budget Offer, 24-inch Trunk Sewer Replacement Utilities Deputy Director for Water Engineering & Field Services Theresa Connor summarized staff’s request. On July 14, a section of the Spring Creek Trunk Sewer collapsed and needed an emergency repair on a 20-foot section of the pipeline. Subsequent televising of the rest of the 500-foot section of pipeline has found that it is structurally compromised and should be replaced. In addition, significant longitudinal cracks were found in the 100-foot section of pipe just downstream. This section of pipe is the original 24-inch clay. Staff is recommending lining this section of pipe. Discussion Highlights: Board members commented on and inquired about various related topics including the material of the pipe replacement (PVC); reasons why the collapse was a surprise if staff has a televised monitoring system (Ms. Connor replied that with the new asset management system that has been in place for a year, staff will be able to better predict when infrastructure needs to be replaced; Water Systems Engineering Division Director Matt Fater commented that the amount of flow contributed to the failure; pipe lining; budget; asset management system; timeframe of infrastructure replacement; Mr. Fater commented that the Master Plan is moving toward a five-year update cycle to help with planning infrastructure replacement; collection lines and trunk lines, and whether rate of financing is keeping up with emergency situations (staff replied this would be part of the discussion on Capital Improvement Projects at the board’s October 3 work session). WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 6 Board Member Tarry moved that Water Board recommend City Council approve an off-cycle budget appropriation not to exceed $650,000 for renewal (including replacement and lining) of approximately 600-foot section of the Spring Creek 24- inch Trunk Sewer Line. Board Member Kuiken seconded the motion. Discussion on the motion: None Vote on the motion: it passed unanimously, 8-0  NECCO A4 Lateral Mid-Cycle Budget Offer and Graham Easement Deputy Director Theresa Connor summarized the agenda item to appropriate funds in the 2020 mid-cycle budget to construct the Northeast College Corridor Outfall (NECCO) A4 Lateral and to approve an exchange of easement with Jack and Ginger Graham for the A4 Lateral for an easement to Jack and Ginger Graham and an exchange of Stormwater Fees for a proposed hay barn. Discussion Highlights: Board members commented on and inquired about various related topics including the culvert; pole barn and plant investment fee (due to square footage). Board Member Ortman moved that Water Board recommend City Council approve the Mid-Cycle offer of $959,500 for design and construction of the NECCO A4 Lateral. Board Member Steed seconded the motion. Discussion on the Motion: None Vote on the motion: it passed unanimously, 8-0 Board member Tarry moved that Water Board recommend City Council approve the ordinance authorizing the exchange of the easements and offsetting fees with the Graham property that is fair and equitable for stormwater rate payers. Board Member Ortman seconded the motion. Discussion on the motion: None Vote on the motion: it passed unanimously, 8-0  Stormwater West Vine Basin Property Purchase Deputy Director Theresa Connor summarized the staff proposal to appropriate prior year reserves in the Storm Drainage Fund to purchase a portion of the property at WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 7 1337 West Vine Avenue. The parcel is needed to construct the West Vine Outfall, which is part of the approved West Vine Basin Master Drainage Plan. Discussion Highlights: Board members commented on and inquired about various related topics including whether the south portion of land is in the floodplain (Stormwater Engineering & Land Development Civil Engineer III Shane Boyle replied it is not; it is a developable piece of land); suggestion to show the floodplain on the map; plat shown in meeting packet materials is a preliminary image; rate of $3.55 per square foot per appraisal; buying land means committing to the alignment; other nearby lots; Stormwater Engineering and Development Review Manager Ken Sampley summarized issues and options related to the project. Board Member Tarry moved that Water Board recommend City Council approve the off-cycle budget offer of approximately $280,000 for the acquisition of a portion of the property at 1337 West Vine Drive for the West Vine Basin Master Drainage Plan. Board Member Steed seconded the motion. Discussion on the motion: None Vote on the motion: it passed unanimously, 8-0  Competitive Process Exception, Woodward Cogeneration Systems Special Projects Manager Link Mueller summarized staff’s request for an exception to the competitive purchasing process for the purchase of two biogas-powered combined heat and power (CHP) generator sets for the Drake Water Reclamation Facility (DWRF) in support of the City’s Climate Action Plan (CAP) goals. Woodward has collaborated with City staff and their consultants for several years working in the design of a cost-efficient combined heat and power (CHP) system that can utilize biogas produced at Drake Water Reclamation Facility (DWRF). Purchasing the CHP generator set through Woodward provides the most economical procurement by allowing Woodward to leverage equipment provided by the company, its vendors and clients. Discussion Highlights: Board members commented on and inquired about various related topics including the showcase part of the agreement (reasonable notice to visit site, etc.); details of the generator sets and heat exchangers; and clarification on the reason for exception from competitive process. Board Member Malers moved that the Water Board recommends to City Council approval of the resolution for an exception to the competitive purchase process for the purchase of two biogas-powered cogeneration systems and their associated engineering services from Woodward, Inc. WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 8 Board Member Ortman seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 Utilities Fall Code Update, Greek Housing Multi-Family (Attachments available upon request) City Code currently treats all fraternity and sorority housing as nonresidential (commonly called commercial) customers. This is based on the assumption that this housing has a commercial kitchen and dormitory style housing. However, an applicant has proposed using a multi-family building as a fraternity, which has highlighted that this assumption is not always correct. This update would allow for two categories of Greek Letter Organization housing: dormitory (which includes a commercial kitchen) and multi-family. Discussion Highlights: Board members commented on and inquired about various related topics including the reason for differentiating Greek housing (staff replied that in City Code, Greek Housing is mentioned separately) if Greek and commercial housing pays the same rates; Mr. Boyle commented that the Greek letters on the sign automatically kicks up the fee to commercial. Board Member McKinley moved that Water Board recommends City Council approve proposed amendments of City Code relating to Water Plant Investment Fees, Water Supply Requirements, and Sewer Plant Investment Fees for housing associated with Greek Letter Organizations. Vice Chairperson Tarry seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 Horsetooth Supply Line Shutdown Emergency Water Supply Project (Attachments available upon request) Water Production Manager Mark Kempton summarized the Three Separate inter- governmental agreements (IGAs) between combinations of the City of Fort Collins, Fort- Collins Loveland, East Larimer County, and North Weld County water districts (the Tri- Districts), the City of Greeley, and the Northern Colorado Water Conservancy District (Northern Water) regarding a project to provide a temporary backup water supply pumping system during an October-November 2020 shutdown of the Soldier Canyon Dam Outlet pipeline from Horsetooth Reservoir to the two drinking water treatment plants serving the City of Fort Collins and surrounding areas. The pumping system is intended as a backup supply system to the primary Cache la Poudre River water supply during the 60-day long planned outage of the Horsetooth water line. WATER BOARD REGULAR MEETING 09/19/19 – MINUTES Page 9 City of Fort Collins uses two drinking water sources – Horsetooth (HT) and Poudre River. The HT Pipeline is operated by Northern Water. The maintenance project will include a 45 to 60-day shutdown in Fall 2020 for maintenance City of Fort Collins uses two drinking water sources: Horsetooth (HT) and Poudre River. The HT Pipeline is operated by Northern Water. Water Treatment Facility will be on a single water source during the project: Poudre River; agreement and temporary backup water supply pumping system will mitigate risk associated with single water source; Mr. Kempton stated he will return to Water Board next month with estimate cost and appropriation request. Discussion Highlights: Board members commented on and inquired about various related topics including if a catastrophic event occurs, will the pumps be adequate (Mr. Kempton replied that they could ask Northern to delay the project in the event of a wildfire, etc.); long term mitigation technique; extensive public outreach on water conservation to decrease water demand; temporary because it’s less expensive (a permanent pump station would cost significantly more). Board Member Malers moved that the Water Board recommend to City Council the adoption of three Inter Governmental Agreements with a combination of the Tri-Districts, the City of Greeley, and Northern Water, authorizing the City to enter into contracts to develop a backup water supply system during the planned shutdown during the Horsetooth Reservoir water supply line in Fall 2020. Board Member Ortman seconded the motion. Discussion on the motion: None Vote on the Motion: it passed unanimously, 8-0 7. OTHER BUSINESS a. The board invited visitor Rob Graves of Morning Fresh Dairy to comment on the Horsetooth agenda item. Mr. Graves asked staff to keep him updated as the project develops. b. Agenda look ahead for Oct 8 work session: Harmony Gateway 8. BOARD MEMBER REPORTS None. 9. ADJOURNMENT 7:51 p.m.