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Home My WebLink AboutMINUTES Water Committee 1988-03-16a RECORD OF PROCEEDINGS /Water Committee March 16,1988 Committee:Chairman Dickinson,Trustees Aldrich Barker Attending:Chairman Dickinson,Trustee Aldrich Also Attending:Mayor Dannels,Trustees Brown,Habecker, and Hix,Town Attorney White,Public Works Director Widmer,Finance Officer Vavra,Assistant Public Works Director Gerstberger,Clerk O’Connor Absent:Trustee Barker,Town Administrator Hill Chairman Dickinson called the meeting of the Water Committee to order at 9:00 A.M. ROCKY MOUNTAIN NATIONAL PARK “RESERVE WATER RIGHT”CASE -UPDATE. The Committee reviewed a letter dated February 24,1988 submitted by Town Attorney White.In summary,Attorney White reported the United States has filed a claim for the right to maintain all streams,springs and seeps at their natural flows for the purpose of providing water for future uses of the park,such as campgrounds,picnic areas and entrance stations.In addition, the flows are being claimed to maintain adequate bank stability and conservation,including fisheries.At the present time,the Town has four (4)direct-flow rights from streams in Rocky Mountain National Park;these rights are Fall River (the tap on the penstock from Cascade Dam to the Fall River Water Treatment Plant,two (2)on the Black Canyon Creek,and Glacier Creek--all of which are subject to the “reserve water rights”filing.The Town was not automatically included in the lawsuit,and,if the Town does not become a party in the lawsuit,the Town’s water rights could be compromised.Following discussion,the Committee recommends Town Attorney White prepare the appropriate filings necessary to voice the Town’s opposition to the Rocky Mountain National Park Service “reserve water rights”case. WINDY GAP WATER SALE -UPDATE. Contract between MDC and the Town.Town Attorney White advised negotiations have been proceeding with regard to the sale of the Town’s 35 units of Windy Gap water to the MDC Land Corporation. The Municipal SubDistrict of the Northern Colorado Water Conservancy District is considering requiring MDC to post security in the amount of $3,000,000.00 in the form of an irrevocable Letter of Credit to be held by the SubDistrict to secure the payment of the principal and interest of bonds.If the SubDistrict’s proposed requirement is not modified,MDC has indicated they may not close on the sale of the water.In June, 1987,when the Town and MDC executed the Contract to purchase the Windy Gap water,the Town required an annual irrevocable Letter of Credit to secure payment of each annual assessment.The annual Letter of Credit requirement was for a period of five (5) years.As the proposed SubDistrict requirement could seriously jeopardize the sale of the Windy Gap water,the Committee recommends Town Attorney White prepare a letter which will be submitted by the Mayor to the Municipal SubDistrict requesting the SubDistrict require only an annual Letter of Credit from MDC. The letter should emphasize the closing of the contract is vital to the Town’s interests.Town Attorney White advised a proposed amendment to the contract between MDC and the Town will be submitted for approval during the Town Board meeting scheduled March 22,1988. 0 0 RECORD OF PROCEEDINGS Water Committee -March 16,1988 —Page two Contingency Plan for payment of the 1988 Windy Gap Assessment. The 1988 Windy Gap Assessment of $875,892.84 is due April 1, 1988.Staff prepared and submitted a “contingency plan”for payment of the assessment in the event closing of the Contract with MDC does not occur by April 1st.The Committee reviewed the following alternates which will affect the 1988 Budget: Alternate #1:Borrow $734,050 Water Dept 83,000 Anheuser—Busch 58,842 TOTAL $875,892 Alternate #2:Amend the 1988 Water Department Fund as follows: Reduce the Contingency Fund to zero $100,000 Windy Gap Assessment 83,000 Reduce the Capital Account from $434,000 to f195,000.239,000 Loan (from the Self Insurance Fund)395,050 Prepaid funds from Anheuser— Busch 58,842 TOTAL $875,892 Trustee Habecker (1)expressed concern regarding the integrity of the water system following delays in capital expenditures and (2) questioned why the loan would be appropriated using the Self Insurance Fund in lieu of the General Fund Contingency Fund. Director Widmer expressed similar concern for the water system and stated approximately $45,000 would be available in the Capital Account which would be used on “high priority”capital improvement projects during 1988.Finance Officer Vavra stated the General Fund cash is used to pay ongoing operations au thorized by the 1988 Budget;the Self Insurance Fund has no budgeted commitments at this time.Following additional dis cussion,the Committee recommends Alternate 2 be selected as the plan to follow,and that Finance Officer Vavra be authorized to borrow up to $770,000 from the Self Insurance Fund to the Water Fund should the need arise.Said loan will be on an “interest free”basis. Sale of 1 additional unit.Attorney White advised negotiations are nearing completion for the sale of one additional unit of Windy Gap water to the Left Hand Water Supply Company.The Contract price is approximately $100,000.00.The Town will retain 3 units of Windy Gap water.This Contract should he presented for approval at the Town Board meeting scheduled March 22,1982. WATER SYSTEM DESIGN AND CONSTRUCTION STANDARDS -REVIEW OF PROPOSALS. The Committee reviewed a memorandum dated March 14,1988 submit ted by Assistant Public Works Director Gerstberger.In summary, the memorandum advised 12 RFPs for the water system design and construction standards were solicited;11 firms responded.Staff reviewed the eleven firms and based upon the firm’s qualifica tions and experience,staff recommended Black and Veatch be awarded the contract for a not—to—exceed amount of $7,000.00. Discussion followed,with the Committee recommending the Town accept the proposal in the amount not-to-exceed $7,000.00 submit ted by Black and Veatch. 0 0 BRADFORD PUBLISHING CO.RECORD OF PROCEEDINGS Water Committee -March 16,1988 -Page three WATER PLANT VEHICLE -REVIEW OF BIDS. Public Works Director Widmer reported the “State Bid”price for a i-Ton 4WD Chevrolet Truck is $11,282.63 without trade-in.The existing 1981 truck will be sold “outright”,and the Department will advertise and accept bids.The Committee recommends (1)the local dealer be contacted to ascertain if the dealership is interested in submitting a bid for a new i-Ton 4WD vehicle;and (2)Public Works Director Widmer be authorized to proceed and accept the lowest bid that is offered. AIR COMPRESSOR -REQUEST AUTHORIZATION TO SELL EQUIPMENT. Director Widmer advised the 1974 Quincy Air Compressor is becom ing very difficult to maintain as parts are no longer available. The Public Works Department owns an air compressor and,for the time being,this equipment could be “shared”with the Water Department.The Committee recommends Director Widmer be au thorized to sell the 1974 Quincy Air Compressor. REPORTS: The Committee reviewed the Citizen Service Response Report for February,1988. 67%of all treated water was accounted for in the Accountable Water Report for the month of February. The Town has paid approximately 41%of the Contract price for the construction of the Cascade Diversion Structure.The completion deadline is May 1st. Director Widmer reported the Carriage Hills Homeowners requested copies of correspondence between the Crystal Water Company and the Town that pertained to the Town assuming the water system. Such information was supplied. There being no further business,the meeting adjourned at 10:45 A.M. Vickie O’Connor,Town Clerk M221988 iu UF 8QAD GE TRUSTEES