PLEDGE OF ALLEGIANCE CITIZEN PARTICIPATION REPORTS

Transcription

1 Page 1 of 9 The Board of Trustees of the Town of Berthoud met for a regular meeting on Tuesday, June 10, 2003, in the Board Room of Town Hall. Mayor Karspeck called the meeting to order at 7:30 p.m. MEMBERS PRESENT: MEMBERS ABSENT: STAFF PRESENT: Mayor Milan Karspeck Trustee Don Ashcraft Trustee David Gregg Trustee Michael Patrick Trustee Peder Thorstensen (arrived 7:38 p.m.) Mayor Pro-Tem Jenny Foote Trustee Glen Buckingham Town Administrator Jim White Town Clerk Mary Cowdin Public Works Director Bill George Attorney Bruce Fickel Deputy Town Clerk Charlene Reed PLEDGE OF ALLEGIANCE Mayor Karspeck led the pledge of allegiance. CITIZEN PARTICIPATION There were no items presented from the audience. REPORTS Mayor Karspeck noted the next meeting of the North Front Range Transportation Board is scheduled at 5:30 p.m. on Wednesday, June 11, Mayor Karspeck and Administrator White will attend. Mayor Karspeck presented the Colorado Lottery Anniversary Guide. He noted this publication is available in the Board library for review. Mayor Karspeck noted he spoke with Nancy Coch, the Greeley Water Resources Engineer. She lives in Berthoud and is tuned into our water needs. She suggested we perform an inventory/study regarding our water supply and resources. This would allow us to key in on our needs. She recommended several raw water consultants familiar with the water resources in our region. Mayor Karspeck suggested the Board direct staff to identify a consultant and determine what is involved in going forward with a study.

2 Page 2 of 9 Trustee Ashcraft spoke in favor of this, noting the drought brought this issue to the forefront. With no objection from the Board, staff was directed to do a cost analysis for a study. Trustee Thorstensen arrived at 7:38. INTRODUCTIONS: KELLEY HINES KELLER AND THERON LAFOUNTAIN Administrator White introduced Kelley Hines Keller and Theron LaFountain, who developed the magazine promoting June in Berthoud. Mr. LaFountain noted they were approached to create a magazine that encompassed the events scheduled for June in Berthoud. This magazine has been distributed in Loveland, Longmont and several Berthoud businesses. Ms. Keller noted this was a labor of love, and it felt good to do a fun magazine with a home town feel. Mr. LaFountain suggested this publication be used to encourage businesses to relocate to the Berthoud area. Mayor Karspeck thanked them for their efforts, noting this publication truly reflects June in Berthoud. Trustee Ashcraft noted this publication encompasses all aspects of life in Berthoud and has set the standard for future publications. Administrator White noted the Town and the Chamber of Commerce are considering asking Ms. Keller to develop a publication to provide information for businesses interested in Berthoud. CONSENT AGENDA The consent agenda consisted of items 6a., the minutes of the regular meeting held on May 27, 2003, 6b, the bills allowed for May 2003, 6c., the liquor license renewal for Hays Market and 6d., the special event liquor license for Fickel Park for BAHA. Trustee Ashcraft moved to approve the consent agenda as presented. Second by Trustee Gregg. All members voted YES. INTERNET CABLE MODEM ACCESS Mayor Karspeck contacted Comcast in Longmont, asking what services they anticipate for Berthoud in the future. Stan Reifschneider, the General Manager of the Longmont office, attended the meeting, noting his last visit to Berthoud occurred when the Comcast franchise was transferred to A T & T. Comcast has since purchased A T & T, and they

3 Page 3 of 9 are pleased to be Comcast again. Comcast comes from cable roots, and are the largest cable company in the United States. Their primary goal is to take care of their customers and provide a quality cable product and to provide advanced services. Mr. Reifschneider noted they plan to make high speed internet service available to all their customers. They are also working to provide digital cable and video on demand. In order to provide these services, they must first upgrade their cable and the electronics. Beginning in the next two weeks, an upgrade will begin in the Loveland area, and once that is complete, they will move into the Berthoud area. They hope to have all the upgrades done by year end, and then they will be able to offer cable packages with high speed internet service to the residents of Berthoud, at a package price of approximately $55 per month. Mayor Karspeck asked what changes will be required for customers to add internet service to their cable service. Mr. Reifschneider noted they usually use existing cable, and mount a box on the outside of the house to bring in the internet service. Trustee Ashcraft noted the Board has been actively pushing for high speed internet for Berthoud for a long time. He thanked Mr. Reifschneider for his efforts on our behalf. Mr. Reifschneider noted high speed internet has been a long time coming. They are excited to be able to bring a good product for an affordable price to Berthoud. Board members thanked Mr. Reifschneider for this outstanding news. FARMERS MARKET Administrator White updated the Board on the Farmers Market. We will be holding the Farmers Market on Thursdays, beginning June 19, 2003, and will continue through September 25, We have vendors confirmed and ready to begin at that time. WATER DELIVERY/RESTRICTION MODIFICATION Mayor Karspeck noted the purpose of this item is to consider amending the current watering schedule and restrictions. Public Works Director George noted we are recommending two options for this change. Both options allow two extra hours of watering, by reducing the hours where watering is not allowed to 10:00 a.m. to 6:00 p.m. The second option allows hand watering of plants. He encouraged the Board to keep the restrictions in place, because this is a valuable tool to assist us in conserving water. Trustee Ashcraft suggested the Board allow a 14 day watering permit for residents with new sod. They would pay the higher rate for the water they use, but would be able to

4 Page 4 of 9 water daily for two weeks to get their sod going. He noted this will not affect a large number of homes, but would enable residents to put in new sod this year. Trustee Patrick noted he would be in favor of option 2, which would allow hand watering. He recommended that we closely monitor our water usage through this summer to be sure we are still on track. Trustee Gregg asked if we have updated storage predictions that reflect the use of the new pipeline. Public Works Director George noted the reservoir is currently 18 inches from full, and we are gaining approximately one inch per day. He noted since we have completed the pipeline, we should be able to receive our full supply of water this year. Board members requested a water management plan, and Public Works Director George noted he is in the process of preparing a draft of that document for Board review and consideration. Trustee Gregg suggested that since our situation has improved, we look at relieving our restrictions. Public Works Director George noted that if we are again faced with drought conditions later in the summer, there is the potential for a reduction in the amount of water we can obtain. Trustee Gregg suggested the citizens of Berthoud would appreciate any relief they can get from the restrictions. Trustee Ashcraft noted it is important to conserve water, but if we continue to maintain our water supply, we may want to consider a reduction in the restrictions. Trustee Patrick agreed, noting we are in a much better place this year with the wet, cool spring and the completion of the pipeline. He suggested we may want to revisit this if our water supply remains healthy. He noted the surcharges were implemented to encourage our residents to conserve during a critical situation, and with our improved resources, we may be able to modify those restrictions. Mayor Karspeck noted he was informed by Town Clerk Cowdin this item was not published, so the ordinance cannot be approved at this meeting. He suggested the Board set a public hearing for the next meeting, and suggested the proposed ordinance be modified to allow residents with new sod to water daily for 14 days. Mayor Karspeck read the proposed ordinance. Town Clerk Cowdin suggested we use permits posted for houses with new sod, which would reflect the length of time allowed for the extra watering. Board members felt that would be a good idea. Trustee Patrick moved to set a public hearing to modify our water restrictions for Tuesday, June 24, Second by Trustee Thorstensen. All members voted YES.

5 Page 5 of 9 Mayor Karspeck noted Tom Jones suggested we adjust our rate structure to base our surcharge on our cost of water. This would allow residents to pay lower rates for normal water usage, and excess water would be paid for at a rate closer to the cost to the Town. Trustee Patrick questioned whether this would encourage conservation, and suggested this would have residential users subsidizing our business customers. He encouraged Staff to look closely at this to be sure that is not the case. Trustee Gregg felt this type of structure would be fair for an ongoing system. Our current rate structure was developed to deal with drought conditions, and if that occurs again, we may have tighten the rates again. However, for normal water delivery, it is fair to allow the residents to pay less for normal water and pay more for excess usage. Trustee Ashcraft asked how difficult it would be to develop and implement a plan of this type. Mayor Karspeck noted our current structure is already tiered. The difference is that we would charge more for excessive usage, based on what we paid for water this year. Trustee Ashcraft noted this would be a practical method to set the rates, and would allow the Board to increase the rates for excess usage when we are required to pay more for water. Mayor Karspeck noted out that the Town is in the business of selling water, and we must sell enough to cover our costs. At the same time, we must encourage conservation. WASTEWATER REDUNDANCY ISSUES Public Works Director George presented cost information for redundancy options A and B (#1 and #2). The Board must chose between Option A (#1), to increase to 1.5 mgd at a cost of $924,840.00, or option B (#2) to increase to 2.0 mgd at a cost of $1,684, He presented information regarding the changes and the costs of the changes. Todd Swallows of Glacier Construction is the Project Manager for this project, and was present to answer questions. Mike Johnson and Jim Abbott were present from Black and Veatch. Brien Gidlow was present from Arbor and Associates. Trustee Ashcraft asked for information regarding changes that would need to be made to the rates to offset this additional cost. Mr. Johnson of Black and Veatch noted they would be happy to revise the rate structure based on these projections, but noted there are 21 capital improvements items that will have more of an impact on the rates required. Trustee Patrick noted that the Board is aware they will have to make decisions on additional capital improvement items in the future. However, at this time, we are being asked to spend more on the sewer plant than we anticipated when we developed our current rate structure. The Board is interested in the immediate impact that will be felt by

6 Page 6 of 9 our users as we spend the additional funds to make these changes. He pointed out that we cannot predict what future purchases will be required, but we do have an immediate need to increase our source of funds to address this issue. Trustee Ashcraft agreed, and noted one important factor to be considered when making this decision is the cost to our users. Mr. Johnson agreed to provide the revised rate information by Thursday afternoon, June 12, Trustee Thorstensen asked why the Board was told the current plant would be acceptable and then it was rejected by the State. Mr. Johnson noted the Town originally started with what is now option B (#2). Trustee Patrick noted the Board originally felt a 2 mgd plant was too much, too fast. He suggested it would have been helpful if Black and Veatch had presented an alternative for a 1 mgd plant that met redundancy requirements. Now the Board is faced with a difficult choice, and we may still have to select the 2 mgd plant, which is not needed at this time. Trustee Ashcraft noted Black and Veatch recommended that the Town go with the 2 mgd plant from the beginning. He asked why the Town was not told that it would be unacceptable to refurbish the old plant and build a 1 mgd plant. Mr. Johnson noted this issue was not raised by the State until the final review of documents for the reduced plant. At that time, the State felt the existing plant was not adequate to back up the new plant. Mr. Johnson pointed out that the Town did have options at that time. Trustee Thorstensen asked why we proceeded to bid something that did not meet state requirements. Mr. Johnson noted that all regulations are subject to interpretation, and in this case the interpretation was not in favor of the Board. Trustee Patrick noted the regulations were in place already and questioned whether this interpretation was stricter than that used in other places. Mr. Johnson noted the State is not in the habit of requiring Towns to build at double the needed capacity. He pointed out that the Town must have an alternate and acceptable second path for flow, and noted that was determined before the bid was awarded. Mayor Karspeck questioned the difference in the projection for the cost of the second option. He noted we were originally told the cost for the second option would be an additional $3M. Mr. Johnson noted that Glacier Construction has a good handle on what is required to make the transition, and they can accomplish what needs to be done without adding a second centrifuge. Mr. Johnson noted that Black and Veatch finds the revised alternative acceptable. Mayor Karspeck asked if there will be additional engineering costs for Black and Veatch if we proceed with either of these options. Mr. Johnson noted none are projected at this time.

7 Page 7 of 9 Mayor Karspeck noted an Engineer from the State met with the Board and one question asked was whether we could go ahead and use the new plant once it is complete and while the renovations are done. We were told that the entire plant must be completed before it is put on line. That will require the Town of Berthoud to depend on the existing plant until the new plant is completed. Todd Swallows of Glacier Construction noted the original completion date for the 1 mgd plant was to have been October At this time and barring complications, the projected completion date for the entire project is May, He noted they also feel it is important not to put the new plant on line until the plant is complete. Trustee Gregg asked if pricing for option B takes into account that the old plant will not be upgraded, and that was confirmed. He asked if it is possible to extend our repayment on the loans for this project since we are essentially doubling the capacity of the plant and should have a longer expectation for the life of the plant. Mr. Johnson did not have an answer, but agreed to explore this option with our lenders. Trustee Ashcraft noted there was some flexibility in the initial loan process, and he suggested it would be worthwhile to explore these options. Trustee Patrick suggested extending the length of time for payment could increase the interest to the point that it defeats the purpose of extending the note. He expressed concern that we are requiring our residents to pay for capacity we do not need. Administrator White noted we received a fax from Mike Brode, Colorado Water Resources and Power Development Authority, regarding funding. To proceed, he needs a letter by July 1, 2003, identifying how much money we need. If the amount is less than $1M, we may be able to apply for a direct loan. If the amount is more than $1M, we may need another bond issue. Administrator White suggested the Board hold a special meeting prior to the study session on June 17 th, to address this issue and if it cannot be resolved at that meeting, it could be continued to the meeting on June 24 th. Trustee Ashcraft asked that the rate structure information be included in the packets. With construction already in progress, and interest rates low, this is a good time to act. He felt it would be good to go ahead and make the decision next Tuesday and get this process moving forward. Trustee Patrick asked if cost projections include decommissioning the old plant. Public Works Director George noted there should be minimal costs involved, because we will be taking the affluent to the new plant. Town staff can then clean the basins at the old plant. Trustee Patrick asked if there are plans for the old plant. Mr. George noted no firm plans have been made, since we anticipated the old plant would remain in service. If the old

8 Page 8 of 9 plant is off line, there is the potential to move other Town services to that location. Moving the Street Department to that location was discussed in the past. Trustee Patrick noted there would be costs involved to renovate the site. IMPACT OF ELECTION Attorney Fickel summarized the information regarding the consequences of the repeal of Ordinance 874, suggesting a study session to discuss these items. The repeal of 874 has not opened the flood gates for development in Berthoud, and the Town will continue to be conservative when it comes to development. Attorney Fickel noted there are parts of the ordinances that we may want to keep. He noted it would be appropriate to look closely at Ordinance 960, the permit allocation ordinance. Permit allocation has previously been handled in the development agreements, and it may be appropriate to repeal the ordinance in its entirety. Trustee Patrick noted there is no urgency in repealing these ordinances, since we have permits available. He felt a study session would be appropriate, and suggested we include the people who were involved in the development of the ordinance initially. Once we identify the parts of the ordinance we wish to keep and put them in place, then we can rescind the ordinance. Administrator White clarified that the Town has sold a total of 9 permits for the year. Trustee Ashcraft noted residents should understand that growth is still being managed in Berthoud. Trustee Gregg noted he reviewed 929 and 960, and both are relative to 874. He suggested that any valid points should be consolidated into another document, and 929 and 960 should be rescinded in their entirety. Attorney Fickel agreed and noted it might be more appropriate to make changes to the development code, and then the two ordinances can be repealed in whole. That would be the cleanest way to handle this. Mayor Karspeck noted Planner Reed needs to be involved in this process and it should be considered at a study session AUDIT Administrator White noted the 2002 audit was reviewed at a study session with our auditor, Alan Holmburg. He summarized the recommendations, noting that most have been addressed, or steps are being taken to do so. Mayor Karspeck moved to approve the 2002 audit. Second by Trustee Ashcraft. All members voted YES.

9 Page 9 of 9 EXECUTIVE SESSION Mayor Karspeck noted the Board needs to adjourn to an Executive Session to discuss water purchases and to continue the discussion regarding the wastewater plant contracts. He invited Brien Gidlow from Arber and Associates and Public Works Director George to attend the meeting. With no objections, and by unanimous consent, the Board adjourned to an executive session at 9:10 p.m. Mayor Karspeck noted the Board will adjourn directly from the study session. Following the study session, the Board adjourned at 9:55 p.m. Milan Karspeck, Mayor Charlene Reed, Deputy Town Clerk