CITIZENS’ ADVISORY COMMITTEE

Meeting Minutes

October 21, 2004

CAC members in attendance: Myrna Poticha (Chair), Michael Buchenau, Tim Flynn , Theresa Jehn-Dellaport, Larry Keesen, Jim Legas, Rick Sackbauer, Roberta Simonton  

DW staff:  Marie Bassett, Linda Firth, David LaFrance, Greg Fisher, John Loughry, Joe Sloan  

Guests:  Pat Fitzgerald, Manager of Southwest Metro W & S and Platte Canyon Water & Sanitation  

Presenters:  Kees Corssmit & Travis Smith, Integrated Utilities Group, Inc.

Agenda, Minutes & Opening Remarks  

The agenda and minutes were adopted as presented.   

Myrna welcomed Rick Sackbauer to his first CAC meeting.  Rick stated that he looked forward to working with the CAC and the Board.  He hopes to bring more awareness to DW customers on issues of snow pack and the impact of their use on water resources on the Western Slope.   He also wants to encourage the Board and CAC to visit the West Slope.

Comments from the Public  

None

Staff Update  - Marie Bassett, Director of Public Affairs  

Surcharges – The Board will discuss and probably approve a Residential Surcharge Relief Program at its next meeting.  Staff is still working on the details of the program, but it will center on the savings of 30% by residential customers.  If customers saved 30% from 2001 they will receive a credit or refund.   

O & M – Steve Work, Director of Operations and Maintenance, Denver Water’s largest Division, will retire at the end of October.  Brian Good has been selected to replace Steve Work.  Brian currently is the supervisor of the Recycling Plant.  

Cloud Seeding – A contract to maintain but not operate the cloud seeding equipment has been approved by the Board.  If the snow pack is lower than anticipated, another contract can be issued to operate the equipment.  

Green Mountain Pump Station – Work will begin on a new emergency generator at the Green Mountain Pump station.   Denver Water is committed to having back up power at all of the pump stations and treatment plants.   

Colorado River Allocations – The drought has brought up the issue that the Colorado River might be over-allocated.  Federal agreements regarding the Colorado River may have overestimated the amount of water in the river.   Denver Water and several other entities have contracted with Jim Lochhead to follow this issue.  Jim has many years of experience with Colorado River issues and is one of the most knowledgeable about the river.   Myrna asked if there was a report on the allocation review.  Marie responded that no report is available since the issue is just beginning to be discussed among entities with rights in the Colorado River .   

South Platte Protection Plan (SPPP) –  Three meetings on implementing the SPPP were held today ( October 21, 2004 ).  Myrna attended one and Roberta attended two of the meetings.  They reported that the meetings covered mostly background information and setting agenda for the work ahead.  The main task is to advise DW Planning on reallocation of  water tied to the Two Forks site.  Tim asked if minutes were taken at the meetings, and if so, that he would like to have a copy.   

New Manager of Community Relations –  Marie introduced Linda Firth, the new Manager of Community Relations.  Linda has worked for Colorado Springs Utilities and Aurora Water before coming to Denver Water.  Linda stated that she is looking forward to working with the CAC.   

High Line Canal  -- Several e-mails were sent to the CAC concerning development along the route of the High Line Canal .  DW does not get involved in new developments except to review drainage from sites and requests for easements.  DW is concerned with the operation and maintenance of the High Line Canal .  Easements are granted as long as they do not impact the maintenance and operation of the canal.  

Jim asked about the expansion plans for Antero Reservoir.  Marie stated that DW continues to look at this with Aurora and Park County .  The current reservoir could store up to 80,000 acre feet if the embankment was rebuilt.  Due to safety concerns, the current embankment is approved for 20,000 acre feet of storage.   

CAC Discussion on Surcharges  

Roberta asked if the CAC wanted to send some communication to the Board regarding the surcharge relief program.  Larry stated that even with the relief program the solution will not be equitable.  Only equitable system is to base usage on square footage of irrigated area and DW is not able to do that with current customer information systems.  DW needs to move toward a water bu dg et program to ensure equity.  Roberta and Tim requested that the Board should be sensitive to the trickle-down effects of their decision on Master Meter distributors and fixed contracts like Arvada .  After further discussion, the CAC decided it was not necessary to send a motion to the Board.  Most of the members felt comfortable with the idea of those who saved 30% should receive a credit. 

Foothills Agreement & Channelization of the North Fork  of the South Platte

River - Marie Bassett, Director of Public Affairs  

The Foothills agreement, among other outcomes, required DW to establish the CAC.  In that agreement DW is also required to inform the CAC on any channelizations projects on the North Fork of the South Platte . There will be some channelization work done this winter.  A copy of a Board item concerning the work was included in the CAC packet.  Michael asked if there was any organized opposition to the channelization projects on the North Fork .  Marie responded that in the past Denver Water has heard from residents living along the North Fork .  Denver Water has come to agreement with those residents, property by property, through flowage easements.   

Update from Suburban Rate Task Force - Kees Corssmit, Integrated Utility Group  

Tim introduced Kees Corssmit and gave a brief background on the history of the Suburban Rate Task Force.  The Distributors Technical Advisory Committee (TAC) is a voluntary group of distributors who want to better understand how Denver Water sets their rates.  Kees gave a presentation on the concerns and goals of the TAC.  He covered issues of past litigation, Cost of Service, the accomplishments of the TAC, key issues of concern, cost allocations and the possible future of the TAC.  He stated the goal was to continue to work with DW staff on issues of concern.  The TAC has a computer model of how DW sets its rates.  This is important tool which will allow the suburban distributors to understand how rates are set and where they could head into the future.   

Myrna asked if David LaFrance would like briefly respond to the presentation.  David stated the TAC represents some suburban distributors but DW represents all customers in the city and suburbs.  There are system wide issues that the TAC is not looking at in their rate model.  DW has to look at the Charter and Cost of Service.  The TAC is looking only at Cost of Service. Myrna thanked Kees and David and expressed her hope that the relationship between DW and TAC would remain cordial.            

Tim stated that he too hopes the relationship stays cordial.  He was involved in past litigation between DW and the suburban distributors.  That litigation was needed to pull the rates into balance.  The TAC represents suburban customers and as responsible distributors they must seek fair and equitable rates for their customers.  To do this, a better understanding of how DW sets its rates is needed and that was the main reason the TAC was established.     

CAC Business  

Changes to the Bylaws were discussed and further discussion on the topics of members’ terms, mandatory referral of two names for openings on the Committee, and limits of terms will occur at the next meeting.   

Board Communication & Attending Board Meetings  

Roberta will attend the Board meeting on October 27, 2004 .

Theresa will attend the Board meeting on November 10, 2004 .  

Future CAC Agenda Items  

·        Permanent conservation measures & ongoing conservation programs

·        Review Bylaws focusing on the membership and selection sections  

·        Review topic list created in 2003  

·        Update on water storage at Chatfield by Theresa    

Around the Room

Adjournment  

The meeting was adjourned at 6:50 p.m.

CAC Meeting Actions for Next Meeting – September 16, 2004