CITIZENS’ ADVISORY COMMITTEE

Meeting Minutes

November 16, 2006

 

 

CAC Members in Attendance: Theresa Jehn-Dellaport (Vice-Chair),  Michael Buchenau, Russell Burton, Larry Keesen, Jim Legas, Deb Pilon, Myrna Poticha, Rick Sackbauer

 

DW Staff: Marie Bassett, Tom Malmberg, John Wright and Joe Sloan

 

Guest: Guests – Michael Stringer, Lon Engelking, Dre Deemuinck (all representing HOAs)

 

 

OPENING REMARKS, AGENDA AND MINUTES  Approval of changes to Section III 3.a. of the Bylaws was approved by a vote of 6  to 2.  Changes were also approved to Section III 4a so language in the Bylaws is consistent.

 

Agenda was approved with the change to the public comment period.  The guests in attendance came to speak on HOA rates so the comment period was moved to be prior to that agenda item.

 

DENVER WATER UPDATE – Marie Bassett, Director of Public Affairs

 

South Metro - There have been some stories in the news about DW supplying water outside our service area.  There are no plans to do so.  For many years some south metro water providers have been asking Denver Water for water.  Denver Water’s response has been that we are willing to work with other water providers as long as DW does not loose firm yield.  For example if a water provider wanted to use DW facilities to move water we may allow that as long as yield is not impacted and the costs for such operations are covered by the water provider.  A group of water providers has organized in south metro area.  DW does not want to work with individual providers but rather with an organized group.  Again no commitments have been made other than to work with the group to see if mutually beneficial agreements can be developed.

 

Theresa did not understand DW reluctance toward temporary water leases.  Temporary leases are being done in other areas and she would like to see DW agree to these leases.  It would be a win – win situation for DW when it has extra water and for providers in search of water. Marie replied the Board has agreed to some spot sales of water but is reluctant to agree to leases which could be interpreted as a future promise of water. 

 

Theresa raised her concern that there are small water providers that are not part of the South Metro group.  These providers will be left out of any future agreements with DW.  She believes temporary leases of water, when water is available, to some of the small providers would be of benefit to DW and those providers.  Marie responded the Board would rather work with one entity.

The issues in the south metro area, and all across the state, are complex and there is a need to work with organized groups rather than individual water districts.

 

Rick asked Marie to clarify that the discussions with south metro water providers will not include water from the Blue River as the agreement is with DW, and not with providers outside of DW service area.  Marie stated staff and the Board are aware of the decree and its implications.

 

Russell stated that Douglas County water issues are very complex.  All efforts, organized or by individual water districts, are important.  Theresa concurred and stated she is encouraging the districts she works with to establish conservation plans in addition to seeking additional supply.    

 

Marie stated Liz Gardener, DW Conservation, would like to see all future contracts with water districts include language requiring conservation plans equal to Denver Water’s Conservation plan.   Current contracts do not have such language but it could be a suggestion in the 10-year conservation plan.  

 

Sediment at Cheesman - Marie distributed photos of the work being done on Turkey Creek, a tributary to Cheesman, to control sediment.  Higher amounts of sediment are flowing down the creek.  Sediment traps are in place but they require crews and heavy equipment to keep them functioning they way they were designed.  Russell commented he had been at the Board meeting where the project was discussed.  The staging of equipment and materials is difficult and requires crews to live at the site due to the remote location.

 

 

COMMENT FROM THE PUBLIC

 

Michael Stringer works for MSI which represents roughly 100 HOAs.  Some are in Denver Water service area and some are not.  The ones within the service area are classified differently.  Though all are HOAs, some fall into the Commercial & Industrial class and others into Multi-Family.  Michael thought It is unfair that some should belong in one classification with summer/winter rates and others do not.  HOAs will be hit hard by the new rates which go into effect in 2007.  Mr. Stringer asked staff to clarify the classification procedure and asked the CAC to be active in resolving the inconsistencies.

 

Dre Deemuinck is a member of an HOA which has 120 units.  He and Lon Engelking would like to have a better understanding how Denver Water makes it decisions on rates and rate classifications.  They believe their water bill will be disproportionately high once the new rates take effect.

 

 

CAC BUSINESS

 

Discussion of HOA Classification/Rates with DW Staff - Larry stated there was no consistency in Denver Water’s classification system for HOAs.  He has worked with many over the years and he can’t understand why some are residential and others are commercial.  Denver Water needs an irrigation rate which is applied the same to all customers.  Russell has heard DW staff explain the problem; for some HOAs, it goes back to the developer who purchased the tap.  Larry responded that Denver Water approves all development plans and should be consistent.  The developer should not be blamed.

 

John Wright explained how rates are set.  During the rate review process for 2007, the Board was presented with various options.  Board members introduced their own suggestions for changes to rates.  The result is that the fourth block has a much steeper rate than in the past.   This change will affect those customers who use over 80,000 gallons in a billing cycle.  The other issue is classification of customers into a rate class.  Clearly those in the commercial class will not be affected by the block rate structure. 

 

Tom Malmberg explained how projects are reviewed and classified by Denver Water.  Currently, Denver Water does not have an “irrigation-only” rate.  Denver Water looks at the basic use of a site and determines the classification for the customer.  Tom stated it is difficult to classify some customers and it may appear there are inconsistencies.  However, staff uses the existing Operating Rules to determine classification and as there is no “irrigation-only” rate. DW staff classifies customers in either residential, multi-unit, commercial or “all others”.  An “irrigation-only” rate may not be the solution as parks, schools, and churches all have irrigated areas.  If a one-size-fits-all irrigation rate is established, public spaces which currently pay a lower rate would be charged the same as an HOA or business.  Perhaps residential customers would request their bill be separated into irrigation and indoor use.  Rate classification is a complex topic.

 

Larry stated that an irrigated area around an HOA is charged one rate and across the street there could be a business park with the same amount of irrigated area, but the business park is paying the commercial rate.  Michael added the human use of those sites is very different.  Irrigated areas around an HOA are similar to parks or schools, while the business park often irrigates an area for aesthetics.   Therefore, the irrigated area around an HOA should have the lower rate.   Russell added that building codes sometimes require business parks to install bluegrass around a building.   Some developers would like to use Xeriscape but are limited by codes.  Michael concurred but believes developers, HOAs, etc., can make changes.  The city wants a property to look appealing or fit into the existing landscape.  He believes those who enforce codes will accept native plantings if those plantings are done well. 

 

Michael Stringer raised the issue of parks and their waste of water.  He represents a development that is very water conscious.  In his opinion a park near the HOA wastes water.  The HOA is charged $8 per thousand, when in the fourth block, while the park pays less than $2 per thousand and is wasting the water.  It does not make sense.

 

Russell asked if the new CIS system would facilitate the creation of an irrigation rate or a way to track irrigation use for a customer.  Tom said it may help but would require a large amount of monitoring customers.  For example a park is developed.  It is all irrigation.  Then after the tap is issued a snack shop and bathroom is added.  DW would not know of those changes unless customers are monitored or audited.

 

Larry requested the CAC send a motion to the Board asking for a review of this issue.

 

Motion - The CAC requests the Board study the discrepancies in rate classifications between HOAs and Commercial customers, especially when comparing the irrigated areas of these customer classes. 

 

The motion passed unanimously.

 

Review application for CAC openings - Applications were reviewed and the CAC will invite all seven applicants to the next CAC meeting.

 

Select Chair and Vice-Chair for 2007- By unanimous vote, the CAC selected Theresa Jehn-Dellaport as Chair and Deb Pilon as Vice-Chair for 2007. 

           

Future Meetings - The next CAC meeting will be on December 14, 2006.  (Once again, a CAC meeting falls on Myrna’s birthday)!

 

Attendance at Future Board Meetings - Theresa will attend the Board meeting on December 13, 2006.

 

 

The meeting was adjourned at 7:00 pm