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Home My WebLink About08/18/2022 - Water Commission - AGENDA - Regular Meeting WATER COMMISSION REGULAR MEETING AGENDA August 18, 2022 5:30PM – 7:30PM Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room 08/18/2022 Agenda Page 1 This hybrid Water Commission meeting will be available online via Zoom, by phone, or in person in the Colorado Room of 222 LaPorte Ave. The meeting will be available to join beginning at 5:00 p.m. Participants should join at least 15 minutes prior to the 5:30 p.m. start time. ONLINE PUBLIC PARTICIPATION: You will need an internet connection on a laptop, computer, or smartphone, and may join the meeting through Zoom at https://zoom.us/j/97277170269 Webinar ID: 972 7717 0269 (Using earphones with a microphone will greatly improve your audio). Keep yourself on muted status. For public comments, the Chairperson will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the Zoom session to ensure all participants have an opportunity to comment. PUBLIC PARTICIPATION BY PHONE: Please dial +1 346 248 7799 and enter Webinar ID 972 7717 0269. Keep yourself on muted status. For public comments, when the Chair asks participants to click the “Raise Hand” button if they wish to speak, phone participants will need to press *9 to do this. Staff will be moderating the Zoom session to ensure all participants have an opportunity to address the Water Commission. When you are called, press *6 to unmute yourself. PUBLIC PARTICIPATION IN PERSON: To participate in person, individuals should come to the Colorado River Community Room of 222 LaPorte Ave and be prepared to follow strict social distancing guidelines. There may be needs to limit the number of individuals in the meeting room, and thus staging for individuals to speak may need to occur in the lobby or outside (weather permitting). Individuals who wish to speak will line up along the northern wall, maintaining physical distancing. The chairperson will call upon each participant to speak. (Continued on next page) WATER COMMISSION REGULAR MEETING AGENDA August 18, 2022, 5:30PM – 7:30PM Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room 08/18/2022 Agenda Page 2 1. CALL TO ORDER 2. ROLL CALL 3. AGENDA REVIEW 4. COMMUNITY PARTICIPATION (3 MINUTES PER INDIVIDUAL) 5. APPROVAL OF MINUTES: JULY 21, 2022 6. UNFINISHED BUSINESS NONE (Continued on next page) Documents to Share: Any document or presentation a member of the public wishes to provide to the Water Commission for its consideration must be emailed to JSong@fcgov.com at least 24 hours before the meeting. Provide Comments via Email: Individuals who are uncomfortable or unable to access the Zoom platform or participate by phone are encouraged to participate by emailing comments to JSong@fcgov.com at least 24 hours prior to the meeting. If your comments are specific to any of the discussion items on the agenda, please indicate that in the subject line of your email. Staff will ensure your comments are provided to the Water Commission. Documents to Share: If residents wish to share a document or presentation, Staff Liaison Jason Graham’s administrative professional needs to receive those materials via the above email address at least 24 hours before the meeting. Individuals uncomfortable or unable to access the Zoom platform or unable to participate by phone are encouraged to participate by emailing general public comments you may have to JSong@fcgov.com. The Interim Staff Liaison’s administrative professional will ensure the Water Commission receives your comments. If you have specific comments on any of the discussion items scheduled, please make that clear in the subject line of the email and send 24 hours prior to the meeting. WATER COMMISSION REGULAR MEETING AGENDA August 18, 2022, 5:30PM – 7:30PM Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room 08/18/2022 Agenda Page 3 7. NEW BUSINESS a. Staff Reports  Financial Monthly Report (meeting packet only)  Water Resources Monthly Report (meeting packet only)  1041 Regulations Update (30 minutes) Kelly Smith, Senior Environmental Planner  2022 Budget Update (30 minutes) Lance Smith, Financial Planning & Analysis Director Jason Graham, Director of Water Utilities 8. COMMISSIONER REPORTS (Committees, Event attendance, etc.) 9. OTHER BUSINESS (Commissioner concerns, Announcements) 10. ADJOURNMENT City of Fort Collins Utilities WATER COMMISSION 2022 Agenda Planning Calendar Subject to Frequent Change Updated 8/10/2022 3:18 PM Meeting Dates Agenda Topics/Action Work Plan Alignment Meeting Materials are due 2 p.m. Wednesday the week before the meeting January 20 --Meeting materials deadline: 2 p.m. Wed Jan 12 --Welcome to new Water Commissioners Rick Kahn and Jordan Radin Staff Reports • Financial Monthly Report (none this month due to year-end process) • Water Resources Monthly Report (meeting packet only) • Memo: 2021 Fall Water Quality Update – Upper Cache la Poudre Watershed (meeting packet only) • Halligan Water Supply Project Briefing Book (meeting packet only) • Beneficial Use of Water Treatment Residuals (WTRs) in Stormwater Treatment (20min)(Basil Hamdan) Other Business • Approve 2021 Annual Report • Discussion of Elections of New Officers Deadlines • Jan 31: Annual Report due to City Clerk (completed) • If applicable, schedule Periodic Review for upcoming meeting to meet July deadline (City Clerk’s Office will remind boards annually if being reviewed) February 3 (Work Session) --Meeting materials deadline: 2 p.m. Wed Jan 26 • Cancelled February 17 --Meeting materials deadline: 2 p.m. Wed Feb 9 Staff Reports • Financial Monthly Report (2021 Year-End Report)(meeting packet only) • Water Resources Monthly Report (meeting packet only) • Halligan Water Supply Project: Year in Review Update (meeting packet only; staff available for questions)(Eileen Dornfest) • E. Coli Study and Recommendations (30min)(Susan Strong) Regular Items • Floodplain Additions and Substantial Improvement Code Change (40min)(Marsha Hilmes-Robinson)(Ken Sampley) Other Business • New Officer Elections • Onboarding Overview March 17 --Meeting materials deadline: 2 p.m. Wed March 9 Staff Reports • Monthly Financial Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) Meeting Dates Agenda Topics/Action Work Plan Alignment Meeting Materials are due 2 p.m. Wednesday the week before the meeting • Utilities Executive Director Update – Introducing Kendall Minor (30min) Other Business • Poudre Headwaters Project – Use of Rotenone to Reestablish Native Greenback Cutthroat Trout April 7 (Work Session) --Meeting materials deadline: 2 p.m. Wed March 30 • Nutrient Regulations and Impacts on City’s Wastewater Treatment Plants (Jason Graham)(confirmed) • New Water Director Introduction (Jason Graham) April 21 --Meeting materials deadline: 2 p.m. Wed April 13 Staff Reports • Monthly Financial Report (meeting packet only) • Water Resources Monthly Report (10min)(Donnie Dustin)(Michael Neale) • 2021 Water Conservation Annual Report (confirmed)(Mariel Miller)(25min) o Each year, the Water Conservation Manager presents a summary of the previous year’s programs, projects, and results. Presentation may include highlights of the upcoming year’s projects and priorities Regular Items • Intergovernmental Agreement for Platte River Power Authority Technical Support Services (25min)(Theresa Connor) • Graywater Ordinance (35min)(Mariel Miller)(Marcus Coldiron) • MDMS Off-Cycle Appropriation Request (22min)(Adam Bromley) • Utilities Customer Satisfaction Survey (every two years: 2019, 2021, 2023, etc.)(next year) May 19 --Meeting materials deadline: 2 p.m. Wed May 11 Staff Reports • Financial Monthly Report (meeting packet only) • Water Resource Monthly Report (meeting packet only) • US Forest Service Poudre Headwaters Project (40min)(Richard Thorp) • Director of Water Update (Jason Graham)(tentative) Other Business • Water Commission and Council Priorities Deadline • Periodic Review due, if applicable (City Clerk will contact Staff Liaison) June 2 (Work Session) --Meeting materials deadline: 2 p.m. Wed May 25 • Drake Water Reclamation Facility Tour June 16 --Meeting materials deadline: 2 p.m. Wed June 8 Staff Reports • Financial Monthly Report (meeting packet only) Meeting Dates Agenda Topics/Action Work Plan Alignment Meeting Materials are due 2 p.m. Wednesday the week before the meeting • Water Resources Monthly Report (meeting packet only) Regular Items • Halligan Update (Theresa Connor)(40min) Other Business • Water Commission and Council Priorities Discussion July 21 --Meeting materials deadline: 2 p.m. Wed July 13 Staff Reports • Financial Monthly Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) • Memo: 2022 Spring Water Quality Update – Upper Cache la Poudre Watershed (meeting packet only) • Memo: Floodplain Management Public Information Committee Annual Report (meeting packet only) Public Hearing • Floodplain Variance for Advanced Energy (Marsha Hilmes-Robinson) August 4 (Work Session) --Meeting materials deadline: 2 p.m. Wed July 27 • Draft 2023 Work Plan (30min)(Discussion) • August 18 --Meeting materials deadline: 2 p.m. Wed Aug 10 Staff Reports • Financial Monthly Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) • 1041 Regulations Update (tentative)(Kelly Smith) • 2022 Budget Update (Lance Smith, Jason Graham)(30min) • Regular Items • September 15 --Meeting materials deadline: 2 p.m. Wed Sept 7 Staff Reports • Financial Monthly Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) • Halligan Water Supply Project Quarterly Update (tentative) Regular Items • Income-Qualified Assistance Program Feedback (Shannon Ash)(tentative) Public Hearing • Floodplain Variance Hearing for Powerhouse 2 (Marsha Hilmes- Robinson)(tentative) Meeting Dates Agenda Topics/Action Work Plan Alignment Meeting Materials are due 2 p.m. Wednesday the week before the meeting • Deadline • Schedule completing 2023 Work Plan to meet Nov 30 deadline October 6 (Work Session) --Meeting materials deadline: 2 p.m. Wed Sept 28 • October 20 --Meeting materials deadline: 2 p.m. Wed Oct 12 Staff Reports • Financial Monthly Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) • Memo: 2022 Summer Water Quality Update – Upper Cache la Poudre Watershed (meeting packet only) • Director of Water Quarterly Update (20 min) Regular Items • Other Business • Discuss 2022 Work Plan draft Deadlines • Nov 30: Work Plan due • Schedule Annual Report to meet Jan 31 deadline November 17 --Meeting materials deadline: 2 p.m. Wed Nov 9 Staff Reports • Monthly Financial Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) • Halligan Water Supply Project Quarterly Report (meeting packet only) Regular Items • Other Business • Approval of 2023 Water Commission Work Plan December 1 (Work Session) --Meeting materials deadline: 2 p.m. Wed Nov 23 • December 15 --Meeting materials deadline: 2 p.m. Wed Dec 7 Staff Reports • Financial Monthly Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) • Director of Water Quarterly Update (20 min) Regular Items • Meeting Dates Agenda Topics/Action Work Plan Alignment Meeting Materials are due 2 p.m. Wednesday the week before the meeting Other Business • Draft 2022 Water Board Annual Report • January 19, 2023 --Meeting materials deadline: 2 p.m. Wed Jan 11 Staff Reports • Financial Monthly Report (meeting packet only) • Water Resources Monthly Report (meeting packet only) • Memo: 2022 Fall Water Quality Update – Upper Cache la Poudre Watershed (meeting packet only) Future Agenda Items not yet scheduled • xxxxxxxxxxxx Work Session Topics • Aquifer storage and recovery • Poudre River watersheds, post-fire recovery • Halligan Reservoir, mitigation planning and responses to EIS comments • Floodplain variance overview • Status of vulnerability study and its implementation • Nutrient regulations and impacts on City’s wastewater treatment plants • Landscaping standards and raw water demand • Water budget approach to rates DRAFT MINUTES WATER COMMISSION REGULAR MEETING July 21, 2022, 5:30-7:30 p.m. Hybrid in person at 222 LaPorte Ave and online via Zoom 07/21/202 2 – DRAFT MINUTES Page 1 1. CALL TO ORDER 5:31 p.m. 2. ROLL CALL • Commissioners Present: Jason Tarry (Chairperson), Greg Steed (Vice Chairperson), John Primsky, Jordan Radin, Paul Herman, Rick Kahn, Tyler Eldridge o Commissioner Rick Kahn left the meeting at 5:48PM citing illness and technical difficulties • Commissioners Absent - Excused: Kent Bruxvoort, Randy Kenyon • Staff Members Present: Jason Graham, John Song, Marsha Hilmes-Robinson, Ken Sampley, Aaron Guin, Emily Peddicord (Advanced Energy), Larry Callahan (Advanced Energy), David Lawton (Advanced Energy) • Members of the Public: None 3. AGENDA REVIEW • Chairperson Jason Tarry briefly summarized items on the agenda 4. COMMUNITY PARTICIPATION • None 5. APPROVAL OF MINUTES CHAIRPERSON TARRY ASKED FOR COMMENTS AND REVISIONS ON THE JUNE 16 MINUTES. Commissioner Primsky moved to approve the June 16 minutes. Commissioner Eldridge seconded the motion. Vote on the motion: it passed unanimously 6-0 with one abstention. Commissioner Radin abstained for his absence from the previous meeting DRAFT MINUTES WATER COMMISSION REGULAR MEETING 07/21/2022 – DRAFT MINUTES Page 2 6. EXECUTIVE SESSION a. Chairperson Tarry asked members of the public to leave the room so the Water Commission could hold an Executive Session regarding the floodplain variance request. b. Chairperson Tarry moved for the Water Commission to go into Executive Session. i. Commissioner Radin seconded the motion. ii. Vote on the motion: it passed unanimously 7-0. Assistant City Attorney Aaron Guin advised the Water Commission on its quasi-judicial role regarding floodplain variance requests. 7. PUBLIC HEARING Floodplain Variance – Advanced Energy, 1625 Sharp Point Dr. (Please note that decisions by the Water Commission regarding variance requests are appealable to the City Council. Contact the City Clerk’s office for information about the City’s appeal guidelines) This hearing with be video recorded. Video transcript available upon request. The following staff members spoke: Marsha Hilmes-Robinson, Ken Sampley The following Commissioners spoke: John Primsky, Jason Tarry, Greg Steed, Jordan Radin The following people spoke for the applicants: Emily Peddicord, David Lawton, Larry Callahan Staff recommendation includes a condition that any approval of a variance shall not be effective until the appeal period has been concluded and that it is determined that no appeals have been filed that would potentially impact the proposed RiskMAP floodplain mapping in this area. The reasons for staff’s recommendation for approval of the variance are: 1. The RiskMAP mapping shows the site to be out of the 100-year floodplain and once the maps are approved, the site will no longer be required to comply with floodplain regulations; and 2. The staff recommendation is specifically based on the timing of the appeal period being completed and that no appeals have been filed that would impact this area. When the mapping reaches this stage, it is far enough along in the process to have confidence that the mapping will not change; and 3. Staff’s discussion with Federal Emergency Management Agency (FEMA) indicated that FEMA would not be concerned b the granting of the variance and thus would not result in any compliance issues for the City of Fort Collins. Furthermore, FEMA provided specific policy guidance, FEMA Policy #104-008-2, related to the use of less DRAFT MINUTES WATER COMMISSION REGULAR MEETING 07/21/2022 – DRAFT MINUTES Page 3 restrictive data and this variance, if the condition is added, would be in compliance with this policy document; and 4. Not granting the variance would lead to an exceptional hardship for the applicant due to the uncertainty in timing of approval of the RiskMAP maps. The maps have already been delayed numerous times. Because the Poudre River mapping is tied to a much larger area of revision, an appeal on another stream could result in map approval. Commissioner Primsky moved to approve the floodplain variance for Advanced Energy at 1625 Sharp Point Drive. Discussion on the motion: A Commissioner noted that the hearing hinges on the trust that the RiskMAP proposed by City staff will be the new floodplain map depending on their evaluation. Another Commissioner noted that the applicant provides economically to the City, and part of the project is to improve the aesthetics of a building for a company that acts as a gateway into the city. It would be difficult to request the applicant to move locations. Another Commissioner expressed that it doesn’t seem that the cumulative improvements to the building warrants the whole process; FEMA code states that spending 50% or more of the building’s value requires this process. Commissioners proposed several friendly amendments. Commissioner Primsky accepted the friendly amendments. Final motion: I move to approve the floodplain variance for Advanced Energy located at 1625 Sharp Point Dr., requesting a variance from the requirements of City Code Sections 10-76(2)a, 10-76(3)a, 10-37, 10-76(9) and 10-48 which would allow construction of a cumulative substantial improvement and addition without being elevated and without developing an Emergency Response and Preparedness Plan in the Zone AE area of the FEMA Flood Insurance Rate Map (Poudre River 100-year floodplain). The following condition shall be included: 1. The floodplain use permit and building permit shall not be approved until the RiskMAP appeal period is completed and it is determined that there are no such appeals that would impact this area. I make this motion based on the evidence in the record showing that the relevant factors and standards set forth in Article III, Chapter 10 of the Code have been met and as required in City Code Section 10-29, the determination that 1) the variance is the minimum necessary, considering the flood hazard, to afford relief; and 2) that there is good and sufficient cause for the variance to be granted; and 3) that failure to grant the variance would result in exceptional hardship to the applicant; and 4) that the granting of the variance will not result in any increased flood heights, any additional threat to public safety or to public or private property, any extraordinary public expense, any nuisance or DRAFT MINUTES WATER COMMISSION REGULAR MEETING 07/21/2022 – DRAFT MINUTES Page 4 trespass, any fraud on or victimization of the public, or any conflict with existing local laws or ordinances. In support of this motion for approval of the variance, and considering the nine factors for this commission to consider a variance as set forth in City Code, I find: that the city expects that the preliminary RiskMAP will be the new floodplain map, assuming no appeals concerning the area where the property is located will change the preliminary RiskMAP that the applicant provides an important service at the proposed facility to the community and this building is a gateway building into the city that the proposed use is compatible with the location, as it has been operating at that location for many years that the variance is not likely to change or increase the danger that material may be swept away onto other lands or injure others that the variance doesn’t change or increase danger to life or property due to flooding or erosion that the variance doesn’t change or increase the susceptibility of the proposed improvement to the property and its contents to flood damange and the effect of such damage on the owner. Commissioner Radin seconded the motion. Vote on the motion: it passed unanimously, 6-0. 8. NEW BUSINESS a. Staff Reports (Attachments available upon request) i. Financial Monthly Report (meeting packet only) ii. Water Resources Monthly Report (meeting packet only) Discussion Highlights A Commissioner inquired whether there were any thoughts to pursue voluntary water restrictions. They noted that it would be good practice for the public and wouldn’t be as drastic if there were suddenly a mandatory restriction. Director of Water Jason Graham responded that there isn’t enough momentum to apply a voluntary water restriction at this time. iii. Memo: 2022 Spring Water Quality Update – Cache la Poudre Watershed (meeting packet only) DRAFT MINUTES WATER COMMISSION REGULAR MEETING 07/21/2022 – DRAFT MINUTES Page 5 Discussion Highlights Mr. Graham wanted to inform the Commission that Per- and Polyfluorinated Substances (PFAS) is becoming an emerging topic. The Commission expressed interest in seeing a topic regarding PFAS in the future. iv. Memo: Floodplain Management Public Information Committee Annual Report (meeting packet only) v. Graywater Response from Mayor (meeting packet only) 9. COMMISSIONER REPORTS None 10. OTHER BUSINESS Jason Graham gave a high-level update of Water Utilities, including Halligan updates, the staff organizational chart, budgeting, changes to contract type for contractors, staffing changes, etc. 11. ADJOURNMENT 8:24 p.m. These minutes will be approved by the Water Commission on August 18, 2022. WaterRevenuein thousandsPercent of Year 58.3%July Year to DateActualOver/ (Under)BudgetActualOver/ (Under) Inc/(Dec)% Bud Recvd % Act Recvd2022 2022 Bud 2022 2022 2022 Bud 2021 2022 2021Residential Water Sales$ 2,100 * $ 191 $ 8,736 $ 9,440 $ 704(A)$ 378 57% 54%Com/Indl Water Sales1,186 * 96 4,490 4,968 479(B)397 53% 51%Raw Water Surcharge15 * 12 34 61 26 20 12% 6%District Water Sales232 * 46 881 1,027 146(C)(373) 54% 38%Other Water Sales6 * (40) 716 315 (401)(D)(235) 34% 44%PILOTs211 20 860 929 69 63 55% 52%Operating Revenue 3,750 326 15,717 16,739 1,023 249 54% 50%Interest Revenue79 26 363 401 38 55 67% 71%Development Fees/PIFs/Contributions11 (117) 905 649 (256)(E)(831) 42% 13%Financing Sources0 0 0 3 3 2 2% 2%Other Misc42 36 85 123 38 (137) 48% 26%Total Lapsing Revenue** 3,883 271 17,070 17,915 845 (661) 53% 45%Non-lapsing Revenue 0 0 0TOTAL** $ 3,883 $ 17,915 $ (661)Variance Analysis:(A)(B)(C)(D)(E)Plant Investment Fees ($234).***District Water sales are 16.5% over budget and 26.7% less than YTD 2021.Residential Water Sales are 8.1% over budget and 4.2% more than YTD 2021.Note: No Water rate increase for 2022.Commercial/Industrial Water sales are 10.7% over budget and 8.7% more than YTD 2021.July billed revenue is for June and early July.Excludes transfers and unrealized gain/loss on value.Irrigation Sales ($419) (water supply didn't yield as much due to fire impacts, so rented out less water, under budget ~$500 by YE) offset by Standpipe Sales $18. Water Fund2022 Department ExpenseIn thousands`Percent of Year 58.3%Excludes depreciation and transfersJuly Year to DateActual(Over)/ UnderYTD Bdgt Actual(Over)/ Under (Inc)/DecActual + PO'sSpent & Committed2022 2022 Bud 2022 2022 2022 Bud 2021 2022 by PO'sWater Treatment$ 659 $ (24) $ 5,457 $ 3,681 $ 1,776(A)$ (707) $ 7,344 76%Water Resources75 54 1,819 1,385 434(B)100 $ 1,578 45%Water Quality Lab117 2 629 617 12 (70) $ 701 59%Subtotal WR&T $ 850 $ 32 $ 7,905 $ 5,683 $ 2,222 $ (677) $ 9,623 67%Transmission & Distribution345 33 1,641 1,643 (2)(C)59 $ 1,660 51%Water Meters O&M74 20 471 396 75 61 $ 424 47%Engineering77 16 788 358 429(D)(111) $ 449 39%Subtotal WEFS 495 69 2,900 2,398 502 10 $ 2,533 48%Water Conservation157 57 778 493 286 (45) $ 725 51%PILOTs211 (20) 860 929 (69) (63) $ 929 55%Admin Services - CS&A364 0 2,551 2,551 0 (80) $ 2,551 58%Other Payments & Transfers129 26 1,227 1,187 40 (259) $ 1,722 59%Subtotal Operating Expenses $ 2,207 $ 164 $ 16,222 $ 13,2410$ 2,981 $ (1,114) $ 18,084 60%Debt Service0 0 0 0 0 0 $ 0 0%Minor Capital38 96 1,017 604 413 (80) $ 1,528 70%Total Lapsing$ 2,245$ 260$ 17,238$ 13,845$ 3,393$ (1,194)$ 19,612 60%Non-lapsing Expenses741 2,345 1,502TOTAL $ 2,986 $ 16,190 $ 308Variance Analysis:(A)(B)(C)(D)Consulting Services $193, Personnel $172 (vacancies), Other Professional & Technical $29 (primarily for NISP outreach BFO offer #1.63), and Water Assessment Services $25.Consulting Services $297 (primarily Large Valve Maintenance work - additional work anticipated this year), Personnel $98 (vacancies and potentially more time being charged capital than budgeted in allocations out), and Other Professional & Technical $13.Contract Payment to Gov't/Other $1,417 (PO carryforward for payments to Greeley: Cameron Peak Fire - Watershed; specifics and funding sources still being worked out (to maximize cost matching and have the most impact); potentially some underspend by YE (year-end)), Project Management Services $61 (estimated Fort Collins' portion of PM to manage post-fire recovery efforts - is used as needed; potentially some underspend by YE), Consulting $63, Construction Services $36 ($20 underspend from PO carryforward related to the Poudre intake and channel realignment, likely under ~$20+ by YE), Chemicals $56 (lower demand and quality less challenging to treat), Maintenance Contracts $43, Water Assessment Services $38 (Pleasant Valley Pipeline was paid in June/July the past two years, paid in August this year), Electricity $36 (weren't running all four treatment trains earlier this year, due to lower demand), Other Professional & Technical $24, Design Services $14, Lab Supplies $11, Software Maint. $10, and Testing Services $16 (Big Thompson Watershed Forum dissolved and trying to reforming an entity to provide those services; potential underspend by YE), offset by Personnel ($27) (Assumed Vacancy Factor ($56), Tuition Reimbursement ($12), Termination Pay ($17), Standby ($4), Overtime ($10) offset by vacancies), Electrical Parts ($22) (unexpected switchgear issue, YE spend TBD), and Natural Gas ($21) (likely due to colder than expected weather this past winter, potentially over budget by YE).Personnel ($30), Vehicle Repair ($17), and other smaller overspends, offset by Street & Bridge Maintenance Services $53, Solid Waste Services $22, and other smaller underspends. WastewaterRevenuein thousandsPercent of Year 58.3%July Year to DateActualOver/ (Under)BudgetActualOver/ (Under) Inc/(Dec)% Bud Recvd % Act Recvd2022 2022 Bud 2022 2022 2022 Bud 2021 2022 2021Residential WW Sales$ 1,321 * $ 1 $ 9,206 $ 9,276 $ 70(A)$ (39) 59% 58%Com/Indl WW Sales549 * (24) 3,380 3,261 (119)(B)311 53% 58%District WW Sales34 * (1) 248 239 (8) (1) 56% 58%Other WW Sales32 * 12 104 161 57 23 81% 58%PILOTs114 (2) 775 767 (8) 16 57% 58%Operating Revenue 2,051 (14) 13,711 13,704 (8) 310 57% 58%Interest Revenue43 13 203 214 11 34 66% 74%Development Fees/PIFs/Contributions10 (12) 237 322 86(C)(446) 43% 21%Financing Sources0 0 0 0 0 (25)Other Misc4 (21) 48 115 68(D)28 92% 76%Total Lapsing Revenue** 2,108 (33) 14,199 14,355 156 (99) 57% 56%Non-lapsing Revenue 0 0 0TOTAL** $ 2,108 $ 14,355 $ (99)Variance Analysis:Note: No Wastewater rate increase for 2022.(A)(B)(C)(D)(E)***Residential sales are 0.8% over budget and 0.4% less than YTD 2021.Plant Investment Fees $77.Commercial/Industrial sales are 3.5% under budget and 10.6% more than YTD 2021. due to decreased water consumption for some of the larger customers driven by weather variations and Excludes transfers and unrealized gain/loss on value.Lab Services $32, Ranch Income $16, and Bad Debt Recovery $13.July billed revenue is for June and early July. Wastewater Fund2022 Department ExpenseIn thousandsPercent of Year 58.3%Excludes depreciation and transfersJuly Year to DateActual(Over)/ UnderYTD Bdgt Actual(Over)/ Under YTD (Inc)/DecActual + PO's% Bud Spent & Committed2022 2022 Bud 2022 2022 2022 Bud 2021 2022 by PO'sWater Reclamation & Biosolids $ 667 $ (35) $ 3,413 $ 3,243 $ 169(A)$ (112) $ 3,595 57%Pollution Control Lab124 13 681 626 55 1 703 57%Subtotal WR&T 790 (23) 4,093 3,869 224 (111) 4,298 57%Trunk & Collection205 (15) 985 925 60(B)(89) 925 52%Engineering76 3 645 439 206(C)(180) 581 59%Subtotal WEFS 281 (12) 1,630 1,364 266 (269) 1,507 55%PILOTs114 2 775 767 8 (17) 767 57%Admin Services - CS&A214 (0) 1,498 1,498 (0) (29) 1,498 58%Other Payments & Transfers103 1 866 864 1 (112) 1,136 51%Subtotal Operating Expenses $ 1,503 $ (32) $ 8,861 $ 8,362 $ 499 $ (538) $ 9,205 56%Debt Service0 0 259 259 0 $ 33 259 12%Minor Capital297 (244) 537 707 (171)(D)$ (266) 1,075 84%Total Lapsing $ 1,800 $ (277) $ 9,657 $ 9,329 $ 328 $ (771) $ 10,539 35%Non-lapsing Expenses767 2,288 (841)TOTAL $ 2,566 $ 11,617 $ (1,612)Variance Analysis:(A)(B)(C)(D)Consulting $84, Machinery & Equipment Parts $64, Personnel $39, Electrical Parts $26, Conference & Travel $14, Contractual Labor $13, Water $13, offset by Electricity ($45), Chemicals ($35) (use depends on treatment levels and processes), and Natural Gas ($19).Personnel $71, Solid Waste Services $40, offset by Other Supplies ($15), Construction Services ($13), Health and Safety Supplies ($13), Vehicle Repair ($12), Sewer Pipe & Accessories ($11), and Traffic Control ($10) and other smaller variances.Consulting $150 and Construction Services $19 (primarily DWRF Utility Mapping and work still planned for this year; not sure on YE (year-end) spend, yet).Vehicles/Equipment ($146) (explanation pending). StormwaterRevenuein thousandsPercent of Year 58.3%July Year to DateActualOver/ (Under)BudgetActualOver/ (Under) Inc/(Dec)% Bud Recvd % Act Recvd2022 2022 Bud 2022 2022 2022 Bud 2021 2022 2021Single Family Residential SW Services$ 681 * $ (6) $ 4,770 $ 4,759 $ (11)(A)$ 44 58% 59%Non-single Family SW Services835 * (7) 5,883 5,825 (58)(B)29 58% 59%Operating Revenue 1,516 (13) 10,653 10,583 (70) 74 58% 59%Interest Revenue30 13 112 147 35 34 80% 77%Development Fees/PIFs/Contributions37 1 308 396 88(C)(127) 69% 28%Financing Sources0 0 0 0 0 (27)Other Misc3 3 0 24 24 6 71%Total Lapsing Revenue** 1,585 4 11,073 11,150 76 (41) 59% 57%Non-lapsing Revenue 0 0 0TOTAL** $ 1,585 $ 11,150 $ (41)Variance Analysis:Note: No Stormwater rate increase for 2022.(A)(B)(C)(D)***Erosion Control Development Inspection $36, Development Review Charges $24, Stormwater Development Fee $16, and Infrastructure Development Inspection $10.Non-Single Family fees are 1.0% under budget and 0.5% greater than 2021.Single Family Residential fees are 0.2% under budget and 0.9% greater than 2021.Excludes transfers and unrealized gain/loss on value.July billed revenue is for June and early July. Stormwater Fund2022 Department ExpenseIn thousandsPercent of Year 58.3%Excludes depreciation and transfersJuly Year to DateActual(Over)/ UnderBudget Actual(Over)/ Under (Inc)/Dec Actual + PO's% Bud Spent & Committed2022 2022 Bud 2022 2022 2022 Bud 2021 2022 by PO'sDrainage and Detention$ 324 $ (75) $ 1,176 $ 1,087 $ 89(A)$ 39 $ 1,269 58%Engineering160 82 1,254 791 464(B)(24) 980 47%Stormwater Quality Programs59 (11) 245 228 17 (10) 365 58%Admin Services - CS&A255 (0) 1,783 1,783 (0) (29) 1,783 58%Other Payments & Transfers66 3 520 503 17 (63) 657 32%Subtotal Operating Expenses $ 863 $ (1) $ 4,979 $ 4,392 $ 586 $ (87) $ 5,054 51%Debt Service0 0 11 11 0 403 11 1%Minor Capital0 59 993 770 223(C)(656) 1,181 96%Total Lapsing $ 863 $ 58 $ 5,983 $ 5,174 $ 809 $ (340) $ 6,247 51%Non-lapsing Expenses357 1,368 990TOTAL $ 1,221 $ 6,541 $ 651Variance Analysis:(A)(B)(C)Mowing Services $90 (mowing season still underway - BFO enhancement offer, too), Personnel $60, Vehicle Repair $17 (reactionary - newer equipment holding up well), Other Professional & Technical $16 (haven't had a need for this, yet), and Consulting $10 (BFO Offer 1.65 Dirt Recycling & Management Study, working with Streets leadership transition on the best way to spend the money), offset by Street & Bridge Maintenance ($55) (Glenmoor project work), Leased Equipment Rental Services ($24) (work tasks required this to be spent earlier than calendarized), Health & Safety Supplies ($15) (were told to buy AED and OSHA 10 Hour within existing budgets), and Concrete & Asphalt ($11) (spent more than anticipated).Consulting $261 (primarily BFO offer 4.16 Poudre River Flow Consolidation Study, est project completion in Oct, expecting to use most of the budget by YE (year-end)), and Personnel $161 (primarily vacancies, under budget by YE).Vehicles/Equipment (all but $45K of 2022 budget encumbered and awaiting delivery). Utilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.212.2900 V/TDD: 711 utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: August 10, 2022 TO: Water Commission FROM: Michael Neale, MSc, Water Resources Engineer RE: July 2022 Water Resources Division Staff Report Purpose This memorandum is intended to update the Water Commission on water resource conditions for the City of Fort Collins Water Utility (Water Utility) over the month of July and provide updated future outlook information. For additional information, please refer to the City’s website: https://www.fcgov.com/utilities/water-status Water Resources Summary Supply and Demand Projections for the remainder of WY2022 • Water Supply – During the month of July, water supply consisted of 64% from Horsetooth, and 36% from the Poudre River, including 8% of which diverted via the Pleasant Valley Pipeline. See supply and demand outlook attached. • Water Demand – Demands within the Water Utility service area for the month of July were slightly below projected. Please refer to the attached graphs and tables. Generous precipitation during the month likely influenced lower irrigation demands within the service area. • Water demand for July was 93% of the projected demand. • Water demand for calendar year is 98% of the projected demand. Weather: https://climate.colostate.edu/ Measured at the Fort Collins weather station 053005 along with average normals from 1991-2020: • Mean daily high temperature recorded for the month: 89.8 oF. • 30-year average daily high temperature for the month is: 87.4 oF. • Total recorded monthly precipitation: 3.84 inches. • 30-year average precipation for the month: 1.63 inches. Reservoir Storage: As of August 1st and presented in the Northern District Storage and Delivery Report: • Colorado-Big Thompson project reservoirs (Granby, Carter, and Horsetooth): 91% full. • Horsetooth Reservoir: 79% full. • Joe Wright Reservoir: 99% full (101% of average for the month based on 14 years of data). Cache la Poudre River flow: Graphical data for the Poudre River is available on-line at: • Cache La Poudre River at the Canyon Mouth https://dwr.state.co.us/Tools/Stations/CLAFTCCO?params=DISCHRG • Cache La Poudre River at Fort Collins https://dwr.state.co.us/Tools/Stations/CLAFORCO?params=DISCHRG Drought Monitors: • Larimer County and Colorado https://climate.colostate.edu/drought_info.html Most of Larimer County is under no drought conditions. Western end of the County and the rest of the state is experiencing abnormally dry to severe drought conditions. • Colorado and the USA https://droughtmonitor.unl.edu/ The Colorado River basin remains in a drought. Climate Outlook: https://www.cpc.ncep.noaa.gov/ National Oceanic and Atmospheric Administration (NOAA) climate outlooks for the northern Front Range and northern mountains, over the next three months: • Leaning below normal precipitation • Likely above normal temperature. Other Water Supply Considerations: • For a few days in July, our water treatment facility was forced to reduce and/or close intake from the Poudre River due to prolonged high turbidity levels. This is due to rain runoff over burn areas in the Poudre watershed. • Horsetooth supplies are more than sufficient to fulfill demands through the water year and beyond, including a maximum CBT carryover for use in 2023. • Water Resources Division is attentive of Colorado River drought management policy and maintains communication with Northern Water on potential implications for the CBT system. City of Fort Collins Utilities Scenario Demand (AF) Poudre Supply (AF) Horsetooth Supply (AF) Horsetooth, Carryover for 2023 (AF) Supply --2,084 13,779 4,190 High Demand 8,420 ------ Projected Demand 7,457 ------ Low Demand 6,748 ------ Remaining Water Demand and Supply from August 10 - October 31, 2022 ASSUMPTIONS • Values look at remaining demands and supplies through the end of the Water Year (Oct 31st ) DEMANDS •Projected demand based on GPCD and population estimates • Low demand is projected demand reduced by 10% • High demand applies a monthly worse case factor to projected demand SUPPLIES Poudre • Poudre Supply is a fire impacted Poudre that is approximately 60% of the annual average. Monthly percentages of average are Nov-Jan 95%, Feb 0%, Mar 95%, Apr 85%, May-Jun 40%, Jul 30%, Aug 25%, Sep 70%, Oct 80%. Horsetooth Reservoir • Horsetooth Supplies include CBT, NPIC MU, Windy Gap • CBT supply: 80% quota, 2.75 AF NPIC MU allocation/share • A 1,500 AF Joe Wright-CBT exchange with NPIC • Windy Gap supply: 2,750 AF expected from PRPA All remaining Horsetooth raw water CBT obligations have been deducted. Horsetooth Carryover Objective • Max amount allowable is 4,190 AF before 10% shrink 0 5,000 10,000 15,000 20,000 25,000 Supply High Demand Projected Demand Low DemandVolume (acre-feet)Horsetooth, Carryover for 2023 (AF)Horsetooth Supply (AF) Poudre Supply (AF)Demand (AF) City of Fort Collins Utilities Treated Water Monthly Summary 2022 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year to Date WTF Water Supply (MG) From Poudre 161.6 0.0 190.8 293.2 122.3 288.4 431.0 1,487.3 From Horsetooth 289.9 433.3 306.1 297.1 696.5 785.3 756.4 3,564.6 Total Raw Water 451.5 433.3 496.8 590.3 818.8 1,073.8 1,187.3 5,051.9 Demands (MG) WTF Production 436.0 415.4 468.3 557.2 780.5 1,025.9 1,134.5 4,817.7 Change in Storage -1.6 -1.0 4.0 4.7 -0.2 0.5 0.7 7.0 Demand on WTF 437.6 416.4 464.4 552.5 780.7 1,025.4 1,133.8 4,810.8 From Soldier Canyon 21.8 7.1 14.4 48.7 174.5 307.9 348.5 922.9 To Soldier Canyon 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 To FC-Lov/NWCWD -39.6 -33.2 -48.4 -96.0 -235.9 -407.7 -469.8 -1,330.6 For City 419.8 390.3 430.4 505.3 719.3 925.6 1,012.4 4,403.1 Daily Deliveries to City (MG) Max During Month 14.8 15.7 14.8 24.3 29.7 35.7 37.4 37.4 Min During Month 12.1 13.4 12.7 13.9 18.2 21.9 25.8 12.1 Avg During Month 13.5 13.9 13.9 16.8 23.2 30.9 32.7 20.7 Monthly Deliveries (Ac-Ft) Projected 1,369 1,247 1,392 1,551 1,961 2,959 3,329 3,251 2,760 1,685 1,338 1,339 24,181 Actual 1,288 1,198 1,321 1,551 2,208 2,841 3,107 13,513 Ratio 94%96%95%100%113%96%93%56% Year to Date Deliveries (Ac-Ft) Projected 1,369 2,616 4,008 5,559 7,520 10,479 13,808 17,058 19,819 21,503 22,842 24,181 24,181 Actual 1,288 2,486 3,807 5,358 7,565 10,406 13,513 13,513 Ratio 94%95%95%96%101%99%98%56% C-BT Project Storage Lake Granby Storage in Lake Granby decreased 3,430 acre-feet last month Horsetooth Reservoir Storage in Horsetooth Reservoir decreased 13,587 acre-feet last month Carter Lake Storage in Carter Lake decreased 3,119 acre-feet last month August 1, 2022 520,402 90,409 124,068 70,219 Total Storage Granby Carter Horsetooth Empty 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Acre‐FeetAugust 1 Total Storage 520,402 15,731 Acre‐Feet 8240 8250 8260 8270 8280 8290 Nov‐17Feb‐18May‐18Aug‐18Nov‐18Feb‐19May‐19Aug‐19Nov‐19Feb‐20May‐20Aug‐20Nov‐20Feb‐21May‐21Aug‐21Nov‐21Feb‐22May‐22Aug‐22Elevation (ft)124,068 32,667 Acre‐Feet 5360 5380 5400 5420 5440 Nov‐17Feb‐18May‐18Aug‐18Nov‐18Feb‐19May‐19Aug‐19Nov‐19Feb‐20May‐20Aug‐20Nov‐20Feb‐21May‐21Aug‐21Nov‐21Feb‐22May‐22Aug‐22Elevation (ft)90,409 21,821 Acre‐Feet 5660 5680 5700 5720 5740 5760 5780 Nov‐17Feb‐18May‐18Aug‐18Nov‐18Feb‐19May‐19Aug‐19Nov‐19Feb‐20May‐20Aug‐20Nov‐20Feb‐21May‐21Aug‐21Nov‐21Feb‐22May‐22Aug‐22Elevation (ft) C-BT Project Allocated Water C-BT Active Storage C-BT Delivery Obligations Notes: August 1, 2022 1) Quota set at 80% 2) Carryover - Entites certified 54,014 Acre-Feet of Carryover for WY2022. for Carryover so that adequate supplies are set aside to fulfill all potential obligations. 3) Regional Pool - Additional water acrued to the Regional Pool on April 30, 2022. There is 19,547 Acre-Feet in the Regional Pool for WY 2022. 136%, Project Reserves 63%, Certified Quota 0%, Collateral 2%, Carryover 3%, Replacement and Contracts 9%, Windy Gap 25%, Empty Project Reserves Regional Pool Certified Quota Collateral Carryover Replacement and Contracts Windy Gap Empty % number represents equivalent quota 0 50,000 100,000 150,000 200,000 250,000 300,000 Acre-Feet Quota Delivered Remaining 0 10,000 20,000 30,000 40,000 50,000 60,000 Acre-Feet Carryover Delivered Remaining Max Potential 0 1,000 2,000 3,000 4,000 Acre-Feet Replacement Delivered Remaining 0 5,000 10,000 15,000 20,000 Acre-Feet Regional Pool Delivered Remaining Unallocated C-BT Project Deliveries August 1, 2022 Deliveries by Area Deliveries by Use 0 50,000 100,000 150,000 200,000 250,000 300,000 2016 2017 2018 2019 2020 2021 2022Acre-FeetAdams Tunnel Total YTD 0 50,000 100,000 150,000 200,000 250,000 2016 2017 2018 2019 2020 2021 2022 Acre-Feet C-BT Project Deliveries Includes Quota, Carryover, Regional Pool and Noncharge Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 40% 56% 4% July Carter Horsetooth Other 48% 47% 5% Water Year Carter Horsetooth Other 0 50,000 100,000 150,000 200,000 250,000 2016 2017 2018 2019 2020 2021 2022Acre-FeetHorsetooth Carter Other 58% 42% July Agriculture M&I 23% 77% Water Year Agriculture M&I 0 50,000 100,000 150,000 200,000 250,000 2016 2017 2018 2019 2020 2021 2022Acre-FeetAgriculture M&I Draft 1041 Regulations Engagement 21041 Regulations Allow local governments to regulate areas and activities of state interest Gives local governments permitting authority over development projects even when the project has statewide impacts. A local government must designate the areas or activities of state interest and adopt guidelines pursuant to state statutory procedures and limitations 3Areas of Statewide Interest Mineral Resource Areas •Gravel Mining Natural Hazard Areas •Geologic •Wildfire Historical/Natural/ Archaeological Resource Areas •State and Federally listed species Areas Around Key Facilities •Highways •Airports •Utility Infrastructure 4Activities of Statewide Interest New/Expanded Domestic Water/Wastewater Municipal/ Industrial Water Projects Highways and Interchanges New Communities Public Utilities Solid Waste Disposal Mass Transit Airports Geothermal Resources Nuclear Detonation 5Statutory Process Public Hearing Designating Activity/Area Moratorium Adopt Guidelines Accept Permit Applications 1 2 3 4 6Where We’ve Been May July September October 2021 ANALYSIS & OPTIONS PUBLIC HEARING/ DESIGNATION RESOLUTION: Study 1041 Powers MORATORIUM12 Engaged•Water Providers •Sanitation Districts •CDOT •30 Communities Boards/Commissions Chamber City Utilities City Engineering Water Providers Sanitation Districts Developers CSUEngaged Water Providers Sanitation Districts PFA Engaged 7Where We Are Going NOVDECJANFEBMARAPRMAYJUNJULYAUGSEPTOCTNOVDECJANAPPROPRIATE FUNDING/ CONTRACTING CODE DEVELOPMENT ENGAGEMENT DRAFT CODE COUNCIL WORK SESSION CODE ADOPTION MORATORIUM EXPIRES IMPLEMENTATION SCHEDULE 4 31st 15th 20th3 8DRAFT 1041 Regulations •Designation Procedures •Definitions •Exemptions Applicability •Determination of Permit Type •Neighborhood Meeting •Public Hearing Approval Process •General Standards •Activity Specific Standards •Activity Specific Purpose Review Standards •Financial Security •Inspection/Reporting •Enforcement Permit Administration •Pre-Application •Application Submittal Requirements 9DRAFT 1041 Regulations •Designation Procedures •Definitions •Exemptions Applicability •Determination of Permit Type •Neighborhood Meeting •Public Hearing Approval Process •General Standards •Activity Specific Standards •Activity Specific Purpose Review Standards •Financial Security •Inspection/Reporting •Enforcement Permit Administration •Permit Application (Submittal Requirements)ExhibitsMajor Water Projects •Transmission Lines •Water Diversions •Water Treatment Facility •Reservoirs •Storage Tanks Major Wastewater Projects•Wastewater Treatment Plants •Interceptor Lines •Lift Stations Highway Projects•State/Federal Highways, Collectors or Interchanges •Closure of Frontage Roads Applicability: Definitions 10DRAFT 1041 Regulations •Designation Procedures •Definitions •Exemptions Applicability •Determination of Permit Type •Neighborhood Meeting •Public Hearing Approval Process •General Standards •Activity Specific Standards •Activity Specific Purpose Review Standards •Financial Security •Inspection/Reporting •Enforcement Permit Administration •Permit Application (Submittal Requirements)Exhibits Operations and Maintenance Approved Development with Valid Building Permit Approved Development with Vested Rights Does Not Meet Definition of Development Applicability: Exemptions 1 2 3 4 11DRAFT 1041 Regulations •Designation Procedures •Definitions •Exemptions Applicability •Determination of Permit Type •Neighborhood Meeting •Public Hearing Approval Process •General Standards •Activity Specific Standards •Activity Specific Purpose Review Standards •Financial Security •Inspection/Reporting •Enforcement Permit Administration •Permit Application (Submittal Requirements)Exhibits Operations and Maintenance Approved Development with Valid Building Permit Approved Development with Vested Rights Does Not Meet Definition of Development Applicability: Exemptions 1 2 3 4 Definition of Development: Exemptions 1.CDOT projects within existing ROW 2.City or Public utility work within existing easements/ ROW 12DRAFT 1041 Regulations Permit Hierarchy Administrative Permit Full Permit 2 3Findings of No Significant Impacts (FONSI) 1 Final Development Plan Excavation Permit ROW Encroachment Permit Stockpile Permit 13DRAFT 1041 Regulations Impacts Analysis: Review Standards Social •Recreation •Safety Environmental •Public Health •Visual Quality •Air Quality •Water Quality •Groundwater •Wetlands & Riparian Areas •Wildlife •Natural Habitats and Features •Soils •Nuisance •Water Conservation Economic •Financially Feasible •Financial Impacts •Impacts to City Infrastructure •Duplicative Service Impacts •Eminent Domain Can Appeal to City Council Can Appeal to PZ Commission 14DRAFT 1041 Regulations Administrative Permit Director DecisionStaff ReviewApplication Complete Completeness Review Application Submitted 90-days to Decision 120 Day Continuance Full Permit City Council Hearing PZ Commission RecommendationStaff ReviewApplication Complete Completeness Review Application Submitted 90-days to Hearing 15What We Heard: Working Groups Do You Support Tiered Regulatory Approach Working Group YES NO CDOT X Water/ Sanitation Providers X Environmental Advocacy X Economic Focus X Boards and Commissions X City Utilities/Engineering X Public X 16What We Heard: Working Groups Do You Support Tiered Regulatory Approach Working Group YES NO CDOT X Water/ Sanitation Providers X Environmental Advocacy X Economic Focus X Boards and Commissions X City Utilities/Engineering X Public X Aligns Process/Fees w/ Project Impacts Encourages Applicants to Reduce Impacts 17What We Heard: Working Groups Do You Support Tiered Regulatory Approach Working Group YES NO CDOT X Water/ Sanitation Providers X Environmental Advocacy X Economic Focus X Boards and Commissions X City Utilities/Engineering X Public X Too Much Director Discretion All 1041 Projects Should Have Same Process Difficult to Administer 18What We Heard: Working Groups Appealable Director Decisions Appealable? Director Decision YES NO Permit Determination X Revised Permit Determination X Administrative Permit Decision X Permit Suspension X Extension of Permit Suspension X 19What We Heard: Working Groups Communities with Tiered Approach Tiered Community YES NO Routt County X Arapahoe County X El Paso County X Pueblo County X Boulder County X Larimer County X City of Pueblo X Golden X Summit County X 20What We Heard: Working Groups Predictability: Thresholds and Definitions Confusing Circumvent Threshold Yes No Yes No Water Serving 250 DUs X Water Serving 25 DUs X Pipe Size X Easement Width X X 21What We Heard: Working Groups Concern Over Cost 1041 Review Similar City Review Process Fee Conceptual Review Conceptual Review $0 FONSI Site Plan Advisory Review (SPAR)$0 Pre-Application Review Meeting Preliminary Design Review $1,000 Appeal of Administrative Decisions Appeal of Administrative Decisions $100 Administrative 1041 Permit Basic Development Review $16,900 Full 1041 Permit Planned Unit Development $54,475 For Questions or Comments, Please Contact: Kelly Smith ksmith@fcgov.com AGENDA ITEM SUMMARY Water Commission STAFF: Lance Smith, Strategic Finance Director SUBJECT 2022 Budget Update EXECUTIVE SUMMARY The purpose of this item is to provide a mid-year update on the current year financial performance of each utility as well as to present the revenue forecasts and budget Offers for the 2023-24 budget cycle. Financial data through July shows revenues to be 8% over budget in the water utility but just below budget in the wastewater and stormwater utilities. Development fees are down significantly from the same period last year in each utility. Operating expenses have increased in 2022 over last year but remain below budget in each utility. Higher inflation is putting upward rate pressure in each utility over this and future budget cycles. The budget Offers included here are being considered for inclusion in the City Manager’s Recommended Budget which will be published at the beginning of September. Through public comment and several City Council Work Sessions, the City Council will develop the 2023-24 Budgets before adopting the 2023 budget in November. Rate increases are being proposed to provide additional revenues to meet inflationary pressures in operating and capital investments. The preliminary proposal of a rate increase of 2.0% in each of the three water utilities presented to the Council Finance Committee last December is being reviewed again this October with the Council Finance Committee before coming to the Water Commission for Action in October and then for First Reading November 1st. STAFF RECOMMENDATION No action is requested of the Commission at this time. BACKGROUND/DISCUSSION 2022 Year to Date Budget Update Operating revenues are shown below for each utility through July along with a projection of where each is expected to be relative to the annual budget at year end. While the water utility has seen increased water sales in 2022 over 2021, both wastewater and stormwater have at or just below budget most months this year. Operating expenses are below budget year to date in each utility as well as in the centralized utility Customer Service & Administration internal fund. The water utility carried forward a large appropriation from 2021 related to watershed restoration following the large fires in recent years with much of the timing Operating Revenues 2022 YTD thru July Exceedance / (Shortfall) of Budget Projected Year End Water $16,739,000 $1,023,000 $1.2-1.8M Wastewater $13,704,000 ($8,000)$(0.3)-0.0M Stormwater $10,583,000 ($70,000)$(0.2)-0.0M of that expense being realized depends on partnering agencies and utilities. Each utility is expected to be below budget on operating expenses at the end of the year with any unspent budget returning to the respective utility’s reserve balance for use for future appropriations. In addition to operating revenues from monthly utility bills, each utility receives revenues from new and re- development through plant investment fees. These fees are dependent on the type of change in service is being requested and vary considerably from year to year. These fees are intended to cover the costs associated with providing the increased level of service only and are not used to meet ongoing operating costs. 2023-24 Budget Cycle Pre-COVID the City historically had developed a biennial budget every other year. In 2019 a mid-year budget reduction effort was undertaken and City Council directed staff to focus on developing a one year budget just for 2020. A similar effort and decision was made in 2021 resulting in just the 2022 budget being developed. With the opportunity to again align the two year budget cycle with the City Council election cycle again in 2022, the City is returning to the biennial budget process for the 2023-24 Budget cycle which will lead to the City Council developing and then adopting the 2023 budget this November. The budget process consists of two parallel paths initially as revenues are forecasted while separately budget offers are written for ongoing operations and maintenance expenses, capital investments needed to either serve new development or to renew the existing infrastructure as well as any program or service level enhancement offers. Revenues are forecasted based on historical trends, anticipated growth and any necessary rate increases to meet higher operating costs as well as asset renewal investments. The table below shows the projected rate increases that will be proposed for consideration as part of the 2023-24 budget process. Further analysis is being done to ascertain the impacts of the recent increased rates of inflation have on future rate increases and debt financing costs associated with the long-term financial models for each utility ahead of the October Council Finance Committee meeting. Further discussion in October with this Commission on the proposed rate increases will be followed by a request for this Commission to take action on those proposed increases before they are considered by the City Council in November. Operating Expenses 2022 YTD thru July (Exceedance) / Underspend of Budget Projected Year End Water $13,241,000 $2,981,000 $2.5-3.5M Wastewater $8,362,000 $499,000 $0.3-1.0M Stormwater $4,392,000 $586,000 $0.3-1.0M CS&A Internal Services $9,077,000 $1,771,000 $1.5-2.5M PIF / Dev. Fee Revenue 2022 YTD thru July Exceedance / (Shortfall) of Budget Increase / (Decrease) Over 2021 Water $649,000 ($256,000)($831,000) Wastewater $322,000 $86,000 ($446,000) Stormwater $396,000 $88,000 ($127,000) For the water utility revenues being considered available for appropriation in this budget cycle are shown in this table: For the wastewater utility revenues being considered available for appropriation in this budget cycle are shown in this table: For the stormwater utility revenues being considered available for appropriation in this budget cycle are shown in this table: WATER FUND Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 Operating Revenue $31,659,641 $32,986,304 $33,629,144 $31,125,000 $32,785,000 $33,505,000 % Change 4.2%1.9%2.7%5.3%2.2% PIF / Contributions $2,043,047 $1,451,199 $4,197,332 $1,525,000 $1,335,000 $1,585,000 % Change -29.0%189.2%-12.9%-12.5%18.7% All Other Revenues $2,317,597 $2,160,464 $984,054 $1,015,784 $1,381,466 $1,434,853 % Change -6.8%-54.5%12.6%36.0%3.9% Total Revenues $36,020,286 $36,597,968 $38,810,532 $33,665,784 $35,501,466 $36,524,853 % Change 1.6%6.0%2.2%5.5%2.9% WASTEWATER FUND Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 Operating Revenue $23,887,186 $23,433,299 $23,605,607 $23,925,000 $23,910,000 $24,670,000 % Change -1.9%0.7%0.1%-0.1%3.2% PIF / Contributions $538,797 $1,441,578 $1,436,536 $750,000 $885,000 $935,000 % Change 167.6%-0.3%0.0%18.0%5.6% All Other Revenues $958,924 $977,964 $606,274 $449,611 $676,346 $701,827 % Change 2.0%-38.0%-7.2%50.4%3.8% Total Revenues $25,384,906 $25,852,841 $25,648,417 $25,124,611 $25,471,346 $26,306,827 % Change 1.8%-0.8%0.0%1.4%3.3% STORMWATER FUND Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 Operating Revenue $17,441,127 $17,909,734 $18,027,096 $18,300,000 $18,600,000 $18,960,000 % Change 2.7%0.7%3.7%1.6%1.9% PIF / Contributions $709,900 $840,615 $1,420,098 $570,000 $890,000 $915,000 % Change 18.4%68.9%0.0%56.1%2.8% All Other Revenues $503,850 $362,752 $256,127 $183,043 $357,891 $374,283 % Change -28.0%-29.4%-6.0%95.5%4.6% Total Revenues $18,654,878 $19,113,101 $19,703,322 $19,053,043 $19,847,891 $20,249,283 % Change 2.5%3.1%3.5%4.2%2.0% On the other side of the process, budget offers have been submitted for further discussion and consideration. These offers can be considered in 3 distinct categories – ongoing operating expenses, asset renewal investments and enhancement offers to either increase capital investment in infrastructure or to increase the level of service provided to our community. For the water utility ongoing operations and maintenance expenses are included in the offers shown in this table: Investments in the water utility’s asset renewal and replacement programs are shown in this table: Enhancement offers being considered for the water utility are shown in this table: Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 CURRENT OFFERS Offer Result Type Title 3.13 HPG Ongoing Water Director's Office $313,901 $323,190 % Change 3.0% 6.2 OTHER Ongoing Utilities: Water - Payments & Transfers $5,731,114 $7,709,405 $8,151,926 $8,601,870 $9,451,511 $9,787,641 % Change 34.5%5.7%5.5%9.9%3.6% 4.12 SAFE Ongoing Water Treatment $5,297,349 $5,279,907 $6,358,229 $5,714,694 $6,235,946 $6,399,656 % Change -0.3%20.4%4.7%9.1%2.6% 4.17 SAFE Ongoing Water Resources $2,740,568 $2,758,721 $3,108,253 $3,330,068 $3,088,800 $3,225,225 % Change 0.7%12.7%-2.2%-7.2%4.4% 4.49 SAFE Ongoing Water Quality Lab $1,071,659 $1,139,594 $1,115,867 $1,164,750 $1,212,374 $1,255,710 % Change 6.3%-2.1%6.9%4.1%3.6% 4.36 SAFE Ongoing Transmission & Distribution $2,874,822 $3,046,669 $3,207,728 $3,223,523 $3,574,884 $3,741,291 % Change 6.0%5.3%5.9%10.9%4.7% 4.37 SAFE Ongoing Water Meters $731,864 $753,014 $683,176 $880,684 $802,026 $847,718 % Change 2.9%-9.3%14.6%-8.9%5.7% 4.3 SAFE Ongoing Water Engineering $548,202 $508,150 $539,041 $763,788 $711,442 $741,411 % Change -7.3%6.1%3.9%-6.9%4.2% 1.40 ENV Ongoing Water Conservation $950,841 $909,456 $889,935 $1,080,896 $1,244,222 $1,293,334 % Change -4.4%-2.1%4.7%15.1%3.9% 28.2 HPG Ongoing City Manager's Office $55,695 $55,695 $56,185 $61,065 $62,897 % Change 8.7%3.0% 73.1 HPG Ongoing General Legal Services 136188 137855 $144,896 $131,271 $135,210 % Change -9.4%3.0% 30.1 SAFE Ongoing City Managers Office: Office of Emergency Management $18,000 $22,592 $21,467 $26,910 $27,799 % Change -5.0%25.4%3.3% Subtotal Current Offers $19,946,419 $22,314,799 $24,270,297 $24,982,821 $26,854,352 $27,841,082 % Change 11.9%8.8%4.5%7.5%3.7% ASSET MANAGEMENT PROGRAMS Offer Result Type Title 4.13 SAFE AM - O Minor Capital $900,556 $843,903 $944,331 $954,319 $1,405,800 $1,405,800 % Change -6.3%11.9%-41.4%47.3%0.0% 4.31 SAFE AM Utilities: Water - Water Treatment and Source of Supply Asset Replacement Program - Ongoing $750,000 $1,030,000 $1,030,000 % Change -25.0%37.3%0.0% 4.51 SAFE AM Utilities: Water - Watershed Protection - Ongoing $80,000 $140,000 $140,000 % Change 0.0%75.0%0.0% 4.38 SAFE AM Utilities: Water - Distribution Small Capital Projects - Ongoing (Parent BU 5026450000)$1,540,000 $2,000,000 $2,000,000 % Change 0.0%29.9%0.0% 4.39 SAFE AM Capital Replacement - Utilities: Water - Meter Replacement (Parent 5026422000)$850,000 $850,000 $850,000 % Change 0.0%0.0%0.0% 5.1 CUL Ongoing Utilities Capital Project: Art in Public Places $73,640 $73,640 $73,640 % Change 21.7%0.0%0.0% Subtotal Asset Management Projects $4,247,959 $5,499,440 $5,499,440 For the wastewater utility ongoing operations and maintenance expenses are included in the offers shown in this table: Investments in asset renewal and replacement programs are shown in this table: ENHANCEMENTS / REDUCTIONS / REDEPLOY 2023 2024 Offer Result Type Title 1.41 ENV Cont. Enhance Utilities: Xeriscape Incentive Program HOAs and Commercial $75,000 $75,000 1.42 ENV 1-time Enhance Utilities: Water Efficiency Plan Update $100,000 $150,000 1.45 ENV Enhance Utilities: Environmental Learning Center Flow Restoration Project Construction $265,242 $0 1.47 ENV Enhance 0.5 FTE Laboratory Quality Assurance (QA) Technician $34,245 $38,623 1.48 ENV Enhance Utilities: Water Quality Services - Poudre Water Quality Network $25,000 $25,000 2.15 ECON Capital Utilities: Light & Power - Advanced Metering Infrastructure Equipment and Technology Upgrade - Year 3 $160,530 $0 3.23 HPG Enhance Utilities: Wood Street Facilities Asset Renewal Program $300,000 $300,000 4.18 SAFE Cont. Enhance Utilities: Water Supply Acquisition Fund $750,000 $750,000 4.19 SAFE Enhance Utilties: Added Water Supply Acquisition Funds $400,000 $900,000 4.21 SAFE Enhance Utilities: Halligan Reservoir Additional Funding for Permitting and Right of Way Access $16,000,000 $8,000,000 4.22 SAFE Cont. Enhance 1.0 FTE - Contractual Halligan Project Permitting Coordinator $29,845 $30,412 4.27 SAFE Enhance 1.0 FTE Plant / Process Engineer $103,610 $130,145 4.28 SAFE 1-time Enhance Utilities: Water Treatment Facility Master Plan Update $0 $700,000 4.30 SAFE AM Utilities: Water Treatment Facility T5/T6 roof replacement $1,500,000 $0 4.32 SAFE AM Utilties: Joe Wright Reservoir Gate Replacement $0 $2,400,000 4.33 SAFE 1-time Enhance Utilities: Cybersecurity measures - MDT-AutoSave software $53,100 $30,000 4.40 SAFE Enhance Utilities: Meter Crawlspace Conversions $250,000 $500,000 4.4 SAFE AM - O Utilities: Galvanized Service Replacements $1,000,000 $1,200,000 4.41 SAFE Enhance 1.0 FTE - GIS Analyst $81,782 $102,597 4.46 SAFE AM Utilities: Distribution System Replacement Enhancement $2,270,000 $3,200,000 4.47 SAFE Enhance 0.4 FTE - Project Manager (Civil Engineer II)$13,935 $23,395 4.48 SAFE Enhance 0.4 FTE - Construction Inspector $26,622 $13,443 4.5 SAFE Cont. Enhance Utilities: Large Valve Maintenance Program $200,000 $200,000 4.54 SAFE Enhance 1.0 FTE Watershed Specialist Sciences $82,410 $103,519 4.55 SAFE Enhance 1.0 FTE Utilities: Water Resources Engineer $92,333 $115,982 4.56 SAFE Enhance Contractual Halligan Project Permitting Coordinator Conversion to Classified $10,040 $14,505 4.6 SAFE AM - E Utilities: Cathodic Protection $625,000 $625,000 4.7 SAFE AM - O Utilities: Distribution System Replacement $1,000,000 $1,000,000 32.19 ENV Enhance 0.5 FTE Municipal Industrial Recycling Sr Specialist $47,457 $60,565 Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 CURRENT OFFERS Offer Result Type Title 6.3 OTHER Ongoing Utilities: Wastewater - Payments and Transfers $6,962,696 $7,841,378 $7,841,582 $8,188,282 $8,868,851 $9,140,580 % Change 12.6%0.0%4.4%8.3%3.1% 1.25 ENV Ongoing Water Reclamation & Biosolids $5,755,866 $5,616,163 $5,849,588 $6,289,776 $6,662,010 $6,844,593 % Change -2.4%4.2%11.7%5.9%2.7% 1.29 ENV Ongoing Pollution Control Lab $1,121,551 $1,162,170 $1,169,847 $1,228,342 $1,286,386 $1,341,166 % Change 3.6%0.7%1.2%4.7%4.3% 1.35 ENV Ongoing Trunk & Collection $1,479,408 $1,668,068 $1,527,481 $1,767,533 $1,963,954 $2,064,030 % Change 12.8%-8.4%7.6%11.1%5.1% 1.13 ENV Ongoing Wastewater Engineering $462,486 $408,819 $447,302 $618,371 $587,515 $616,093 % Change -11.6%9.4%20.9%-5.0%4.9% 3.13 HPG Ongoing Water Director's Office $313,901 $323,190 % Change 3.0% 73.1 HPG Ongoing General Legal Services $19,491 $11,300 $11,984 $21,679 $22,329 -42.0%6.1%80.9%3.0% 30.1 SAFE Ongoing City Managers Office: Office of Emergency Management $11,000 $13,806 $21,467 $26,910 $27,799 25.5%55.5%25.4%3.3% Subtotal Current Offers $15,782,007 $16,727,089 $16,860,906 $18,125,755 $19,731,206 $20,379,780 % Change 6.0%0.8%7.5%8.9%3.3% Enhancement offers being considered for the wastewater utility are shown in this table: For the stormwater utility ongoing operations and maintenance expenses are included in the offers shown in this table: Investments in asset renewal and replacement programs are shown in this table: ASSET MANAGEMENT PROGRAMS Offer Result Type Title 1.21 ENV Ongoing Minor Capital $850,077 $503,558 $689,026 $850,000 $1,230,000 $730,000 % Change -40.8%36.8%-13.1%44.7%-40.7% 1.28 ENV Ongoing Utilities: Water Reclamation and Biosolids Capital Replacement - Ongoing $1,000,000 $530,000 $530,000 % Change 0.0%-47.0%0.0% 1.36 ENV AM Utilities: Wastewater - Collection Small Capital Projects - Ongoing (Parent BU 5036450000)$1,000,000 $1,500,000 $1,500,000 % Change -33.3%50.0%0.0% 1.37 ENV AM Utilities: Wastewater - Cured in Place Pipe Lining - Ongoing (Parent BU 5036490000)$750,000 $750,000 $1,000,000 % Change 25.0%0.0%33.3% 1.34 ENV AM Utilities: Wastewater- Wastewater Supervisory Control and Data Acquisition (SCADA) operational technology asset re $92,500 $500,000 $500,000 1133.3%440.5%0.0% 5.1 CUL Ongoing Utilities Capital Project: Art in Public Places $44,000 $44,000 $44,000 % Change -63.2%0.0%0.0% Subtotal Asset Management Projects $3,736,511 $4,554,004 $4,304,000 ENHANCEMENTS / REDUCTIONS / REDEPLOY 2023 2024 Offer Result Type Title 1.43 ENV Enhance Utilities: Mulberry Water Reclamation Facility UV Disinfection System Replacement $3,660,000 $0 1.14 ENV Cont. EnhaUtilities: Collection System Replacement $1,750,000 $1,750,000 1.27 ENV Cont. EnhaUtilities: Developer Repayments $0 $200,000 1.38 ENV Enhance 1.0 FTE Wastewater Collections Utility Maintenance Operator $67,406 $71,455 1.39 ENV AM Utilities: Collection System Replacement (Enhanced)$520,000 $2,150,000 1.44 ENV Enhance Utilities: Water Reclamation & Biosolids Facilities Master Plan Update $700,000 $0 1.45 SAFE Enhance Utilities: Enviromental Learning Center Flow Restoration Project Construction $265,242 $0 1.47 SAFE Enhance 0.5 FTE Laboratory Quality Assurance (QA) Technician $34,245 $38,623 1.48 ENV Enhance Utilities: Water Quality Services - Poudre Water Quality Network $25,000 $25,000 1.49 ENV Enhance Utilities: Drake Water Reclamation Facility Headworks Replacement $0 $19,000,000 1.50 ENV Enhance Utilities: Drake Water Reclamation Facility HVAC Replacement $600,000 $600,000 1.51 ENV Enhance 1.0 FTE Plant Operator, Lead $67,688 $82,229 1.52 ENV Enhance Utilities: Wastewater - Collection System Master Plan Update $0 $150,000 1.53 ENV Enhance Utilities: Wastewater - Meadow Springs Ranch Vehicle Storage Facility $300,000 3.23 HPG Enhance Utilities: Wood Street Facilities Asset Renewal Program $200,000 $200,000 4.33 SAFE 1-time Enh Utilities: Cybersecurity measures - MDT-AutoSave software $76,900 $30,000 4.47 SAFE Enhance 0.4 FTE - Project Manager (Civil Engineer II)$13,935 $23,395 4.48 SAFE Enhance 0.4 FTE - Construction Inspector $26,622 $13,443 Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 CURRENT OFFERS Offer Result Type Title 6.4 OTHER Ongoing SW Payments and Transfers $7,020,054 $6,176,520 $5,909,817 $5,943,321 $5,589,452 $5,583,129 % Change -12.0%-4.3%0.6%-6.0%-0.1% 1.26 ENV Ongoing Stormwater Quality Programs (ERA)$497,358 $372,310 $406,658 $422,190 $461,244 $476,591 % Change -25.1%9.2%-0.9%9.3%3.3% 3.13 HPG Ongoing Water Director's Office $313,901 $323,176 % Change 3.0% 4.25 SAFE Ongoing Operations and Maintenance $1,784,132 $1,818,397 $1,882,633 $2,177,208 $2,384,521 $2,479,423 % Change 1.9%3.5%25.9%9.5%4.0% 4.1 SAFE Ongoing Stormwater Engineering $1,607,446 $1,526,315 $1,400,178 $1,770,374 $1,813,704 $1,894,321 % Change -5.0%-8.3%2.5%2.4%4.4% 73.1 HPG Ongoing General Legal Services 13950 16950 $17,976 $21,679 $22,329 % Change 21.5%6.1%20.6%3.0% 30.1 SAFE Ongoing City Managers Office: Office of Emergency Management $39,000 $48,949 $53,666 $67,277 $69,498 % Change 25.5%9.6%25.4%3.3% 7.4 TRAN Ongoing Street Sweeping $220,000 $220,000 $220,000 $252,747 $260,329 % Change 0.0%0.0%14.9%3.0% 7.7 TRAN Cont. Enhance Street Sweeping Landfill Fees $220,000 $40,000 $40,000 % Change -100.0%-100.0%3.0% 66.2 SAFE Cont. Enhance Encampment Cleanup 80000 40000 $40,000 $40,000 $40,000 % Change -50.0%0.0%0.0%0.0% Subtotal Current Offers $10,908,991 $10,466,492 $9,925,185 $10,644,735 $10,984,525 $11,188,796 % Change -4.1%-5.2%3.0%5.2%1.9% Enhancement offers being considered for the stormwater utility are shown in this table: CITY FINANCIAL IMPACTS The financial impacts of the budget will be determined once City Council has developed the 2023-24 budgets. Through financial prudence and planning it is expected that each utility will be able to meet its long-term financial goals while maintaining competitive rates and financial resiliency. BOARD OR COMMISSION RECOMMENDATION PUBLIC OUTREACH ATTACHMENTS Attachment 1 – Powerpoint Presentation of Tables for Discussion ASSET MANAGEMENT PROGRAMS Offer Result Type Title 4.11 SAFE Ongoing Utilities: Stormwater Basin Master Planning $225,000 $200,000 $200,000 % Change -50.0%-11.1%0.0% 4.23 SAFE Ongoing Utilities: Stormwater Developer Repays $100,000 $0 $200,000 % Change -80.4%-100.0% 4.26 SAFE Ongoing Minor Capital $191,632 $363,474 $114,422 $572,000 $740,000 $785,000 % Change 89.7%-68.5%-18.3%29.4%6.1% 4.42 SAFE AM Utilities: Stormwater - Collection System Small Projects - Ongoing $1,500,000 $2,000,000 $2,000,000 % Change 0.0%33.3%0.0% 4.43 SAFE AM Utilities: Stormwater - Cured in Place Pipe Lining $500,000 $500,000 % Change 0.0% 5.1 CUL Ongoing Utilities Capital Project: Art in Public Places $51,200 $51,200 $51,200 % Change -33.6%0.0%0.0% Subtotal Asset Management Projects $2,448,200 $3,491,200 $3,736,200 ENHANCEMENTS / REDUCTIONS / REDEPLOY 2023 2024 Offer Result Type Title 4.2 SAFE Enhance Utilities: Debt Service for Oak Street Outfall $3,128,150 $3,125,250 1.24 ENV Cont. EnhaUtilities: Household Hazardous Waste Program $81,778 $84,000 3.21 HPG 1-time Enh Utilities: Water Quality Services - One Water Fort Collins $20,833 $20,833 3.23 HPG Enhance Utilities: Wood Street Facilities Asset Renewal Program $200,000 $200,000 4.10 SAFE Enhance Utilities: Hill Pond and Alternatives Study $60,000 $0 4.20 SAFE Enhance Utilities: Land Acquisition $125,000 $250,000 4.24 SAFE Enhance Utilities: Boxelder Creek Watershed Dams $90,000 $90,000 4.44 SAFE Enhance 1.0 FTE - Civil Design Engineer II $92,333 $115,982 4.45 SAFE Enhance 3.0 FTE - Utility Maintenance Operator $202,218 $214,365 4.47 SAFE Enhance 0.2 FTE - Project Manager (Civil Engineer II)$7,469 $9,199 4.48 SAFE Enhance 0.2 FTE - Construction Inspector $13,312 $6,723 4.52 SAFE Capital Poudre River Flow Consolidation Upstream of College Avenue $0 $250,000 4.53 SAFE Enhance Utilities: Fossil and Stanton Creeks Stream Rehabilitation Projects $1,000,000 $4,000,000 7.10 TRAN Enhance Sweeper – Operator I Position $37,971 $49,500 22.16 HPG Enhance $15 Minimum Wage for Hourly Positions $525 $541 8-18-2022 Lance Smith –Utilities Strategic Finance Director 2022 Budget Update 2Purpose and Direction Sought Objective: •Provide an update on the Capital Improvement Plans and Strategic Financial Plan for the Water and Wastewater Enterprise Funds •Recommend strategic path forward to meet 10 year operational and financial objectives ahead of the 2023-24 Budget cycle for Light & Power, Water, Wastewater and Stormwater utility services Direction Sought: •Does the Council Finance Committee support the Utilities Strategic Financial Plan assumptions ahead of the 2023-24 BFO cycle? In particular, the rate increases associated with the anticipated revenue required? 3Operating Revenues Year to Date Operating Revenues 2022 YTD thru July Exceedance / (Shortfall) of Budget Projected Year End Water $16,739,000 $1,023,000 $1.2-1.8M Wastewater $13,704,000 ($8,000)$(0.3)-0.0M Stormwater $10,583,000 ($70,000)$(0.2)-0.0M 4Operating Expenses Year to Date Operating Expenses 2022 YTD thru July (Exceedance) / Underspend of Budget Projected Year End Water $13,241,000 $2,981,000 $2.5-3.5M Wastewater $8,362,000 $499,000 $0.3-1.0M Stormwater $4,392,000 $586,000 $0.3-1.0M CS&A Internal Services $9,077,000 $1,771,000 $1.5-2.5M 5Development Fees Year to Date PIF / Dev. Fee Revenue 2022 YTD thru July Exceedance / (Shortfall) of Budget Increase / (Decrease) Over 2021 Water $649,000 ($256,000)($831,000) Wastewater $322,000 $86,000 ($446,000) Stormwater $396,000 $88,000 ($127,000) 6Proposed 2023-24 Rate Increases 72023-24 Revenue Forecast WATER FUND Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 Operating Revenue $31,659,641 $32,986,304 $33,629,144 $31,125,000 $32,785,000 $33,505,000 % Change 4.2%1.9%2.7%5.3%2.2% PIF / Contributions $2,043,047 $1,451,199 $4,197,332 $1,525,000 $1,335,000 $1,585,000 % Change -29.0%189.2%-12.9%-12.5%18.7% All Other Revenues $2,317,597 $2,160,464 $984,054 $1,015,784 $1,381,466 $1,434,853 % Change -6.8%-54.5%12.6%36.0%3.9% Total Revenues $36,020,286 $36,597,968 $38,810,532 $33,665,784 $35,501,466 $36,524,853 % Change 1.6%6.0%2.2%5.5%2.9% 82023-24 Revenue Forecast WASTEWATER FUND Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 Operating Revenue $23,887,186 $23,433,299 $23,605,607 $23,925,000 $23,910,000 $24,670,000 % Change -1.9%0.7%0.1%-0.1%3.2% PIF / Contributions $538,797 $1,441,578 $1,436,536 $750,000 $885,000 $935,000 % Change 167.6%-0.3%0.0%18.0%5.6% All Other Revenues $958,924 $977,964 $606,274 $449,611 $676,346 $701,827 % Change 2.0%-38.0%-7.2%50.4%3.8% Total Revenues $25,384,906 $25,852,841 $25,648,417 $25,124,611 $25,471,346 $26,306,827 % Change 1.8%-0.8%0.0%1.4%3.3% 92023-24 Revenue Forecast STORMWATER FUND Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 Operating Revenue $17,441,127 $17,909,734 $18,027,096 $18,300,000 $18,600,000 $18,960,000 % Change 2.7%0.7%3.7%1.6%1.9% PIF / Contributions $709,900 $840,615 $1,420,098 $570,000 $890,000 $915,000 % Change 18.4%68.9%0.0%56.1%2.8% All Other Revenues $503,850 $362,752 $256,127 $183,043 $357,891 $374,283 % Change -28.0%-29.4%-6.0%95.5%4.6% Total Revenues $18,654,878 $19,113,101 $19,703,322 $19,053,043 $19,847,891 $20,249,283 % Change 2.5%3.1%3.5%4.2%2.0% 10Water -2023-24 Ongoing Budget Offers Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 CURRENT OFFERS Offer Result Type Title 3.13 HPG Ongoing Water Director's Office $313,901 $323,190 % Change 3.0% 6.2 OTHER Ongoing Utilities: Water - Payments & Transfers $5,731,114 $7,709,405 $8,151,926 $8,601,870 $9,451,511 $9,787,641 % Change 34.5%5.7%5.5%9.9%3.6% 4.12 SAFE Ongoing Water Treatment $5,297,349 $5,279,907 $6,358,229 $5,714,694 $6,235,946 $6,399,656 % Change -0.3%20.4%4.7%9.1%2.6% 4.17 SAFE Ongoing Water Resources $2,740,568 $2,758,721 $3,108,253 $3,330,068 $3,088,800 $3,225,225 % Change 0.7%12.7%-2.2%-7.2%4.4% 4.49 SAFE Ongoing Water Quality Lab $1,071,659 $1,139,594 $1,115,867 $1,164,750 $1,212,374 $1,255,710 % Change 6.3%-2.1%6.9%4.1%3.6% 4.36 SAFE Ongoing Transmission & Distribution $2,874,822 $3,046,669 $3,207,728 $3,223,523 $3,574,884 $3,741,291 % Change 6.0%5.3%5.9%10.9%4.7% 4.37 SAFE Ongoing Water Meters $731,864 $753,014 $683,176 $880,684 $802,026 $847,718 % Change 2.9%-9.3%14.6%-8.9%5.7% 4.3 SAFE Ongoing Water Engineering $548,202 $508,150 $539,041 $763,788 $711,442 $741,411 % Change -7.3%6.1%3.9%-6.9%4.2% 1.40 ENV Ongoing Water Conservation $950,841 $909,456 $889,935 $1,080,896 $1,244,222 $1,293,334 % Change -4.4%-2.1%4.7%15.1%3.9% 28.2 HPG Ongoing City Manager's Office $55,695 $55,695 $56,185 $61,065 $62,897 % Change 8.7%3.0% 73.1 HPG Ongoing General Legal Services 136188 137855 $144,896 $131,271 $135,210 % Change -9.4%3.0% 30.1 SAFE Ongoing City Managers Office: Office of Emergency Management $18,000 $22,592 $21,467 $26,910 $27,799 % Change -5.0%25.4%3.3% Subtotal Current Offers $19,946,419 $22,314,799 $24,270,297 $24,982,821 $26,854,352 $27,841,082 % Change 11.9%8.8%4.5%7.5%3.7% 11Wastewater -2023-24 Ongoing Budget Offers Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 CURRENT OFFERS Offer Result Type Title 6.3 OTHER Ongoing Utilities: Wastewater - Payments and Transfers $6,962,696 $7,841,378 $7,841,582 $8,188,282 $8,868,851 $9,140,580 % Change 12.6%0.0%4.4%8.3%3.1% 1.25 ENV Ongoing Water Reclamation & Biosolids $5,755,866 $5,616,163 $5,849,588 $6,289,776 $6,662,010 $6,844,593 % Change -2.4%4.2%11.7%5.9%2.7% 1.29 ENV Ongoing Pollution Control Lab $1,121,551 $1,162,170 $1,169,847 $1,228,342 $1,286,386 $1,341,166 % Change 3.6%0.7%1.2%4.7%4.3% 1.35 ENV Ongoing Trunk & Collection $1,479,408 $1,668,068 $1,527,481 $1,767,533 $1,963,954 $2,064,030 % Change 12.8%-8.4%7.6%11.1%5.1% 1.13 ENV Ongoing Wastewater Engineering $462,486 $408,819 $447,302 $618,371 $587,515 $616,093 % Change -11.6%9.4%20.9%-5.0%4.9% 3.13 HPG Ongoing Water Director's Office $313,901 $323,190 % Change 3.0% 73.1 HPG Ongoing General Legal Services $19,491 $11,300 $11,984 $21,679 $22,329 -42.0%6.1%80.9%3.0% 30.1 SAFE Ongoing City Managers Office: Office of Emergency Management $11,000 $13,806 $21,467 $26,910 $27,799 25.5%55.5%25.4%3.3% Subtotal Current Offers $15,782,007 $16,727,089 $16,860,906 $18,125,755 $19,731,206 $20,379,780 % Change 6.0%0.8%7.5%8.9%3.3% 12Stormwater -2023-24 Ongoing Budget Offers Actual 2019 Actual 2020 Actual 2021 Budget 2022 Budget 2023 Budget 2024 CURRENT OFFERS Offer Result Type Title 6.4 OTHER Ongoing SW Payments and Transfers $7,020,054 $6,176,520 $5,909,817 $5,943,321 $5,589,452 $5,583,129 % Change -12.0%-4.3%0.6%-6.0%-0.1% 1.26 ENV Ongoing Stormwater Quality Programs (ERA)$497,358 $372,310 $406,658 $422,190 $461,244 $476,591 % Change -25.1%9.2%-0.9%9.3%3.3% 3.13 HPG Ongoing Water Director's Office $313,901 $323,176 % Change 3.0% 4.25 SAFE Ongoing Operations and Maintenance $1,784,132 $1,818,397 $1,882,633 $2,177,208 $2,384,521 $2,479,423 % Change 1.9%3.5%25.9%9.5%4.0% 4.1 SAFE Ongoing Stormwater Engineering $1,607,446 $1,526,315 $1,400,178 $1,770,374 $1,813,704 $1,894,321 % Change -5.0%-8.3%2.5%2.4%4.4% 73.1 HPG Ongoing General Legal Services 13950 16950 $17,976 $21,679 $22,329 % Change 21.5%6.1%20.6%3.0% 30.1 SAFE Ongoing City Managers Office: Office of Emergency Management $39,000 $48,949 $53,666 $67,277 $69,498 % Change 25.5%9.6%25.4%3.3% 7.4 TRAN Ongoing Street Sweeping $220,000 $220,000 $220,000 $252,747 $260,329 % Change 0.0%0.0%14.9%3.0% 7.7 TRAN Cont. Enhance Street Sweeping Landfill Fees $220,000 $40,000 $40,000 % Change -100.0%-100.0%3.0% 66.2 SAFE Cont. Enhance Encampment Cleanup 80000 40000 $40,000 $40,000 $40,000 % Change -50.0%0.0%0.0%0.0% Subtotal Current Offers $10,908,991 $10,466,492 $9,925,185 $10,644,735 $10,984,525 $11,188,796 % Change -4.1%-5.2%3.0%5.2%1.9% 13Water -2023-24 Asset Management Budget Offers ASSET MANAGEMENT PROGRAMS Offer Result Type Title 4.13 SAFE AM - O Minor Capital $900,556 $843,903 $944,331 $954,319 $1,405,800 $1,405,800 % Change -6.3%11.9%-41.4%47.3%0.0% 4.31 SAFE AM Utilities: Water - Water Treatment and Source of Supply Asset Replacement Program - Ongoing $750,000 $1,030,000 $1,030,000 % Change -25.0%37.3%0.0% 4.51 SAFE AM Utilities: Water - Watershed Protection - Ongoing $80,000 $140,000 $140,000 % Change 0.0%75.0%0.0% 4.38 SAFE AM Utilities: Water - Distribution Small Capital Projects - Ongoing (Parent BU 5026450000)$1,540,000 $2,000,000 $2,000,000 % Change 0.0%29.9%0.0% 4.39 SAFE AM Capital Replacement - Utilities: Water - Meter Replacement (Parent 5026422000)$850,000 $850,000 $850,000 % Change 0.0%0.0%0.0% 5.1 CUL Ongoing Utilities Capital Project: Art in Public Places $73,640 $73,640 $73,640 % Change 21.7%0.0%0.0% Subtotal Asset Management Projects $4,247,959 $5,499,440 $5,499,440 14Wastewater -2023-24 Asset Management Budget Offers ASSET MANAGEMENT PROGRAMS Offer Result Type Title 1.21 ENV Ongoing Minor Capital $850,077 $503,558 $689,026 $850,000 $1,230,000 $730,000 % Change -40.8%36.8%-13.1%44.7%-40.7% 1.28 ENV Ongoing Utilities: Water Reclamation and Biosolids Capital Replacement - Ongoing $1,000,000 $530,000 $530,000 % Change 0.0%-47.0%0.0% 1.36 ENV AM Utilities: Wastewater - Collection Small Capital Projects - Ongoing (Parent BU 5036450000)$1,000,000 $1,500,000 $1,500,000 % Change -33.3%50.0%0.0% 1.37 ENV AM Utilities: Wastewater - Cured in Place Pipe Lining - Ongoing (Parent BU 5036490000)$750,000 $750,000 $1,000,000 % Change 25.0%0.0%33.3% 1.34 ENV AM Utilities: Wastewater- Wastewater Supervisory Control and Data Acquisition (SCADA) operational technology asset r $92,500 $500,000 $500,000 1133.3%440.5%0.0% 5.1 CUL Ongoing Utilities Capital Project: Art in Public Places $44,000 $44,000 $44,000 % Change -63.2%0.0%0.0% Subtotal Asset Management Projects $3,736,511 $4,554,004 $4,304,000 15Stormwater -2023-24 Asset Management Budget Offers ASSET MANAGEMENT PROGRAMS Offer Result Type Title 4.11 SAFE Ongoing Utilities: Stormwater Basin Master Planning $225,000 $200,000 $200,000 % Change -50.0%-11.1%0.0% 4.23 SAFE Ongoing Utilities: Stormwater Developer Repays $100,000 $0 $200,000 % Change -80.4%-100.0% 4.26 SAFE Ongoing Minor Capital $191,632 $363,474 $114,422 $572,000 $740,000 $785,000 % Change 89.7%-68.5%-18.3%29.4%6.1% 4.42 SAFE AM Utilities: Stormwater - Collection System Small Projects - Ongoing $1,500,000 $2,000,000 $2,000,000 % Change 0.0%33.3%0.0% 4.43 SAFE AM Utilities: Stormwater - Cured in Place Pipe Lining $500,000 $500,000 % Change 0.0% 5.1 CUL Ongoing Utilities Capital Project: Art in Public Places $51,200 $51,200 $51,200 % Change -33.6%0.0%0.0% Subtotal Asset Management Projects $2,448,200 $3,491,200 $3,736,200 16Water -2023-24 Enhancement Budget Offers ENHANCEMENTS / REDUCTIONS / REDEPLOY 2023 2024 Offer Result Type Title 1.41 ENV Cont. Enhance Utilities: Xeriscape Incentive Program HOAs and Commercial $75,000 $75,000 1.42 ENV 1-time Enhance Utilities: Water Efficiency Plan Update $100,000 $150,000 1.45 ENV Enhance Utilities: Environmental Learning Center Flow Restoration Project Construction $265,242 $0 1.47 ENV Enhance 0.5 FTE Laboratory Quality Assurance (QA) Technician $34,245 $38,623 1.48 ENV Enhance Utilities: Water Quality Services - Poudre Water Quality Network $25,000 $25,000 2.15 ECON Capital Utilities: Light & Power - Advanced Metering Infrastructure Equipment and Technology Upgrade - Year 3 $160,530 $0 3.23 HPG Enhance Utilities: Wood Street Facilities Asset Renewal Program $300,000 $300,000 4.18 SAFE Cont. Enhance Utilities: Water Supply Acquisition Fund $750,000 $750,000 4.19 SAFE Enhance Utilties: Added Water Supply Acquisition Funds $400,000 $900,000 4.21 SAFE Enhance Utilities: Halligan Reservoir Additional Funding for Permitting and Right of Way Access $16,000,000 $8,000,000 4.22 SAFE Cont. Enhance 1.0 FTE - Contractual Halligan Project Permitting Coordinator $29,845 $30,412 4.27 SAFE Enhance 1.0 FTE Plant / Process Engineer $103,610 $130,145 4.28 SAFE 1-time Enhance Utilities: Water Treatment Facility Master Plan Update $0 $700,000 4.30 SAFE AM Utilities: Water Treatment Facility T5/T6 roof replacement $1,500,000 $0 4.32 SAFE AM Utilties: Joe Wright Reservoir Gate Replacement $0 $2,400,000 4.33 SAFE 1-time Enhance Utilities: Cybersecurity measures - MDT-AutoSave software $53,100 $30,000 4.40 SAFE Enhance Utilities: Meter Crawlspace Conversions $250,000 $500,000 4.4 SAFE AM - O Utilities: Galvanized Service Replacements $1,000,000 $1,200,000 4.41 SAFE Enhance 1.0 FTE - GIS Analyst $81,782 $102,597 4.46 SAFE AM Utilities: Distribution System Replacement Enhancement $2,270,000 $3,200,000 4.47 SAFE Enhance 0.4 FTE - Project Manager (Civil Engineer II)$13,935 $23,395 4.48 SAFE Enhance 0.4 FTE - Construction Inspector $26,622 $13,443 4.5 SAFE Cont. Enhance Utilities: Large Valve Maintenance Program $200,000 $200,000 4.54 SAFE Enhance 1.0 FTE Watershed Specialist Sciences $82,410 $103,519 4.55 SAFE Enhance 1.0 FTE Utilities: Water Resources Engineer $92,333 $115,982 4.56 SAFE Enhance Contractual Halligan Project Permitting Coordinator Conversion to Classified $10,040 $14,505 4.6 SAFE AM - E Utilities: Cathodic Protection $625,000 $625,000 4.7 SAFE AM - O Utilities: Distribution System Replacement $1,000,000 $1,000,000 32.19 ENV Enhance 0.5 FTE Municipal Industrial Recycling Sr Specialist $47,457 $60,565 17Wastewater -2023-24 Enhancement Budget Offers ENHANCEMENTS / REDUCTIONS / REDEPLOY 2023 2024 Offer Result Type Title 1.43 ENV Enhance Utilities: Mulberry Water Reclamation Facility UV Disinfection System Replacement $3,660,000 $0 1.14 ENV Cont. EnhaUtilities: Collection System Replacement $1,750,000 $1,750,000 1.27 ENV Cont. EnhaUtilities: Developer Repayments $0 $200,000 1.38 ENV Enhance 1.0 FTE Wastewater Collections Utility Maintenance Operator $67,406 $71,455 1.39 ENV AM Utilities: Collection System Replacement (Enhanced)$520,000 $2,150,000 1.44 ENV Enhance Utilities: Water Reclamation & Biosolids Facilities Master Plan Update $700,000 $0 1.45 SAFE Enhance Utilities: Enviromental Learning Center Flow Restoration Project Construction $265,242 $0 1.47 SAFE Enhance 0.5 FTE Laboratory Quality Assurance (QA) Technician $34,245 $38,623 1.48 ENV Enhance Utilities: Water Quality Services - Poudre Water Quality Network $25,000 $25,000 1.49 ENV Enhance Utilities: Drake Water Reclamation Facility Headworks Replacement $0 $19,000,000 1.50 ENV Enhance Utilities: Drake Water Reclamation Facility HVAC Replacement $600,000 $600,000 1.51 ENV Enhance 1.0 FTE Plant Operator, Lead $67,688 $82,229 1.52 ENV Enhance Utilities: Wastewater - Collection System Master Plan Update $0 $150,000 1.53 ENV Enhance Utilities: Wastewater - Meadow Springs Ranch Vehicle Storage Facility $300,000 3.23 HPG Enhance Utilities: Wood Street Facilities Asset Renewal Program $200,000 $200,000 4.33 SAFE 1-time Enh Utilities: Cybersecurity measures - MDT-AutoSave software $76,900 $30,000 4.47 SAFE Enhance 0.4 FTE - Project Manager (Civil Engineer II)$13,935 $23,395 4.48 SAFE Enhance 0.4 FTE - Construction Inspector $26,622 $13,443 18Stormwater -2023-24 Enhancement Budget Offers ENHANCEMENTS / REDUCTIONS / REDEPLOY 2023 2024 Offer Result Type Title 4.2 SAFE Enhance Utilities: Debt Service for Oak Street Outfall $3,128,150 $3,125,250 1.24 ENV Cont. EnhaUtilities: Household Hazardous Waste Program $81,778 $84,000 3.21 HPG 1-time Enh Utilities: Water Quality Services - One Water Fort Collins $20,833 $20,833 3.23 HPG Enhance Utilities: Wood Street Facilities Asset Renewal Program $200,000 $200,000 4.10 SAFE Enhance Utilities: Hill Pond and Alternatives Study $60,000 $0 4.20 SAFE Enhance Utilities: Land Acquisition $125,000 $250,000 4.24 SAFE Enhance Utilities: Boxelder Creek Watershed Dams $90,000 $90,000 4.44 SAFE Enhance 1.0 FTE - Civil Design Engineer II $92,333 $115,982 4.45 SAFE Enhance 3.0 FTE - Utility Maintenance Operator $202,218 $214,365 4.47 SAFE Enhance 0.2 FTE - Project Manager (Civil Engineer II)$7,469 $9,199 4.48 SAFE Enhance 0.2 FTE - Construction Inspector $13,312 $6,723 4.52 SAFE Capital Poudre River Flow Consolidation Upstream of College Avenue $0 $250,000 4.53 SAFE Enhance Utilities: Fossil and Stanton Creeks Stream Rehabilitation Projects $1,000,000 $4,000,000 7.10 TRAN Enhance Sweeper – Operator I Position $37,971 $49,500 22.16 HPG Enhance $15 Minimum Wage for Hourly Positions $525 $541 For Questions or Comments, Please Contact: THANK YOU! lasmith@fcgov.com