HomeMy WebLinkAbout03/16/2023 - Water Commission - AGENDA - Regular Meeting
WATER COMMISSION
REGULAR MEETING AGENDA
March 16, 2023 5:30 p.m. – 7:30 p.m.
Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room
03/16/2023 Agenda Page 1
This hybrid Water Commission meeting is available online via Zoom, phone, or in person in
the Colorado River Community Room of 222 LaPorte Ave. You may join the meeting beginning
at 5:00 p.m. Participants should join at least 15 minutes prior to 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://fcgov.zoom.us/j/98568801045 Webinar ID: 985 6880 1045
(Using earphones with microphone will improve the 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 985 6880 1045. 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
March 16, 2022, 5:30 p.m. – 7:30 p.m.
Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room
03/16/2023 Agenda Page 2
1. CALL TO ORDER
2. ROLL CALL
3. AGENDA REVIEW
4. COMMUNITY PARTICIPATION (3 minutes per individual)
5. APPROVAL OF MINUTES: February 16
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
KaMartinez@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 KaMartinez@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 Zoom or unable to participate by phone are
encouraged to participate by emailing general public comments to KaMartinez@fcgov.com
The Staff Liaison’s administrative professional will ensure the Water Commission receives
your comments. If you have comments on any discussion items scheduled, please make it
clear in the email subject line and send 24 hours prior to the meeting.
WATER COMMISSION
REGULAR MEETING AGENDA
March 16, 2022, 5:30 p.m. – 7:30 p.m.
Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room
03/16/2023 Agenda Page 3
7. NEW BUSINESS
a. Staff Reports
i. Water Resources Monthly Report (meeting packet only)
ii. Memo: 2022 Cameron Peak Fire Recovery Update (meeting packet only)
iii. Water Utility Update (5 minutes)
Jason Graham, Director of Water
iv. 2022 Utilities Financial Year-End Report
(5-minute presentation, 10-minute discussion)
Lance Smith, Utilities Finance Director
b. Regular Items
i. Appropriation Need for a New Customer Information System
(10-minute presentation, 10-minute discussion & action)
Lance Smith, Utilities Finance Director
Staff is requesting a recommendation to Council to approve an appropriation
ordinance from the Light & Power, Water, Wastewater and Stormwater
enterprise funds’ available reserves to implement a modern Utility Customer
Information System – Customer Self Service Portal (CIS-CX) Solution.
These funds are being requested just as the City completes the selection of a
solution partner to maintain project momentum before professional services
are contracted. If approved by City Council, the appropriation ordinance will
allow the City to secure CIS-CX project management and solution quality
assurance services through go-live, provide legal review of professional
services contracts, and provide funding for hiring contractual staff throughout
the implementation.
ii. Poudre Canyon Raw Waterline Improvements Project Funding
(10-minute presentation, 10-minute discussion & action)
Taylor Scott, Special Projects Manager/Civil Engineer III, Capital Projects
This project was funded in budget year 2021 as part of the Environmental
Health Outcome. Utilities staff has completed an alternatives analysis,
conceptual and final design for the improvement, and is moving toward
WATER COMMISSION
REGULAR MEETING AGENDA
March 16, 2022, 5:30 p.m. – 7:30 p.m.
Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room
03/16/2023 Agenda Page 4
construction in fall 2023. Utilities staff will request additional funds from City
Council to complete construction. The additional funding request is due to
market volatility since the 2021 budget was approved and the increased cost
of constructing the improvements in 2023.
Staff plans to request the additional funding be approved by City Council on
April 18 and procure a contractor by summer.
8. COMMISSIONER REPORTS
(Committees, Event attendance, etc.)
9. OTHER BUSINESS
(Commissioner concerns, Announcements)
10. ADJOURNMENT
DRAFT MINUTES WATER COMMISSION
REGULAR MEETING
February 16, 2023, 5:30-7:30 p.m.
Hybrid in person at 222 LaPorte Ave and online via Zoom
02/16/202 3 – DRAFT MINUTES Page 1
1. CALL TO ORDER
5:34 p.m.
2. ROLL CALL
• Commissioners Present: Jordan Radin (Chairperson), Paul Herman (Vice Chairperson),
James Bishop, Ken Bruxvoort, Tyler Eldridge, Rick Kahn, John Primsky, Jason Tarry
• Commissioners Absent - Excused: Greg Steed
• Staff Members Present: Jason Graham, Katherine Martinez, Kendall Minor, Davina
Lau, Donnie Dustin, Heather Young, Paul Iengo, Barb Andrews, Eric Lahman, Jen Dial,
Angel Anderson, Andrew Gingerich
• Members of the Public: Keith Meyer of Ditesco Services, Bob Kingsbury (Parks and
Recreation Board Member)
3. AGENDA REVIEW
• Chairperson Jordan Radin reviewed the agenda, and combined items 9(a) “Boards and
Commissions Update” with 7(a)(i) “Water Commission Responsibilities.”
4. COMMUNITY PARTICIPATION
• None
5. APPROVAL OF MINUTES
Chairperson Radin asked for comments on the draft minutes. There were none.
Commissioner Herman moved to approve the January 19 minutes.
Commissioner Eldridge seconded the motion.
Vote on the motion: it passed unanimously, 8-0
6. NEW BUSINESS
a. Staff Reports
(Attachments available upon request)
i. Boards & Commissions Update
Public Engagement Specialist Davina Lau of the City Clerk’s Office provided
a summary of Boards and Commissions news including: the Boards and
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REGULAR MEETING
02/16/2023 – DRAFT MINUTES Page 2
Commissions Manual has not been updated since 2016, and they’re planning
to add Code of Conduct; next Boards and Commissions Super Issues
meeting is on May 8; Ms. Lau is staff contact for the City Council Ad Hoc
Committee for Boards and Commissions, which has decided to shift
recruitment to spring instead of September to December; the new schedule is
recruitment during December and January, interviews and appoint in March
and April. Recruitment will opening in April to fill open positions.
Council requests that if Boards and Commissions members make public
comment at Council, they identify themselves as such.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including: guidance of City Clerk’s Office to avoid email discussions due to
Colorado Open Meetings law requiring a public meeting if discussion occurs
between three or more commissioners; timing of memos to Council to share
recommendations and alternately inviting the Council Liaison to attend a
meeting; Water Commission Council Liaison is Mayor Jeni Arndt.
ii. Water Outreach and Education Opportunities:
Presentation and Feedback
(Attachments available upon request)
From the 2023 Work Plan: “Review 2023 opportunities for Water
Commissioners to participate in water-related educational and public
outreach efforts.”
Community Engagement Manager Heather Young of Utilities Customer
Connections summarized public engagement programs as well as
opportunities for Water Commission to become involved. Other staff present
included Barb Andrews, Eric Lahman, and Pete Iengo.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including: a suggestion to reach out to landscaping firms to request they
share information with customers about xeriscape and soil amendments; the
Capital Improvement Plan and messaging for projects such as Halligan
Water Supply Project and addressing false perceptions (Ms. Young stated
that her staff engages the community on specific topics at various points in
the project timeline, as well as connecting with key stakeholders for
feedback; misperceptions about Northern Integrated Supply Project (NISP),
DRAFT MINUTES WATER COMMISSION
REGULAR MEETING
02/16/2023 – DRAFT MINUTES Page 3
which the City is not a part of; Mr. Graham mentioned website updates to
https://www.fcgov.com/halligan/ and https://www.fcgov.com/nispreview/ and
lockstep effort between Water Utility and Community Engagement staff;
deliberate conversation about how to elevate the conversation about the
Halligan project, such as pursuing grant funding to help reestablish it as the
top project of Fort Collins Utilities; Fort Collins Connexion communications
and public engagement as a potential model for the Halligan project (team of
five employees).
Other topics discussed included: evaluation of community outreach efforts
(Ms. Young stated staff uses surveys to evaluate behavior and knowledge
before and after; informal evaluation during programs for learning retention
results; reliance on best practices, especially on messaging (social media,
etc.) via multiple touch points; example of Utilities policy engagement such as
xeriscaping and community perception (Mr. Iengo stated that in a two-week
period there were 1,000 unique responses, representing people’s passion for
conserving water, property rights, xeriscaping and soil amendment);
March/April workshops were geared toward community and industry
professionals and how policy will impact businesses; Water Conservation
Team is in charge of the xerixscaping program; how to increase financial
incentives for soil amendments and xeriscaping; and how the City and
Utilities can model these.
iii. Halligan Water Supply Project Update & 2022 Year-In-Review Report
Description
(Attachments available upon request)
Staff presenter was Director of Water Jason Graham with support from Water
Resources Engineer Donnie Dustin and project coordinator Angel Anderson.
This is the first presentation to update on Halligan Water Supply Project
before it goes to City Council on May 9 as part of the Regional Water agenda
item. Purpose and need: water storage, for resiliency; Utilities is not able to
fully use water rights at this time due to lack of water storage; it has hired
consulting firm Tetra Tech to help pursue grant funding; project team and
structure has evolved: almost complete turnover of structure and project team
members; updated cost estimate; next update to Water Commission will be
presented by the full team with new project manager in place.
Discussion Highlights
Commissioners commented on and inquired about various related topics
including 144,000 water customers in Fort Collins; Mr. Dustin stated Halligan
DRAFT MINUTES WATER COMMISSION
REGULAR MEETING
02/16/2023 – DRAFT MINUTES Page 4
is for drought storage, which is important if other supplies are exhausted; the
City owns Halligan Reservoir but not the water and not the dam until we
create additional capacity for the 8,200 acre-feet it has rights to; risk
regarding use of eminent domain/condemnation (staff is avoiding use of
condemnation; negotiating with landowners instead); litigation (this potential
is considered in risks portion of total project costs); the project is an
expansion of the existing reservoir that includes building a new dam just
downstream; scope of linear assets (infrastructure to use Halligan water is
already in place); public outreach; design cost versus total cost (estimate in
presentation is for design and construction; concern by a commissioner for
bonds to pay for project with interest over 20 years; 5% over 15 years will
double total project costs; cost of Colorado-Big Thompson (CBT) Project
water is $75,000 per acre-foot at this time versus Halligan Water Supply
Project (estimated $38,000 per acre-foot) plus potential severe water
restrictions when CBT water is no longer available; Halligan project
contributes toward improving flow in North Fork of Poudre River; Halligan
Project Manager interviews are scheduled for March; water rights for this
project were secured decades ago; commissioners’ suggestion to emphasize
in messaging cost per acre-foot for this project compared to other projects;
request for Water Conservation team to present in the future on savings
through xeriscaping; need for both water conservation and water storage for
reliable supply for the next 30 to 40 years.
iv. Financial Monthly Report
(none this month due to year-end processing)
v. Water Resources Monthly Report
(meeting packet only)
(Attachments available upon request)
Discussion Highlights
Commissioners commented on and inquired about various related topics
including the fact that Water Resources Division staff create this report
specifically for Water Commission; discussion of whether a scaled-down
report (one-page scorecard) is preferred to focus on data of interest to
commissioners and to reduce staff workload burden regarding this report and
Water Commission meetings in general: direction to add this topic to the April
6 work session agenda.
b. Regular Items
DRAFT MINUTES WATER COMMISSION
REGULAR MEETING
02/16/2023 – DRAFT MINUTES Page 5
None
7. COMMISSIONER REPORTS
Chairperson Radin attended the February 6 Boards and Commissions Super Issues
meeting on the East Mulberry Annexation; it’s a large and diverse area, bigger than what
the City would normally take on; phased approach; area served by East Larimer County
Water District (ELCO); City of Fort Collins would take on certain services: stormwater and
flood management; project is still in community outreach phase, no timeline provided;
about 30 staff representing Planning & Zoning and Utilities departments staffed the event;
impetus to “clean up” this gateway to Fort Collins (crime and drug issues) that is within the
Growth Management Area (GMA) that would in turn attract private investors for major
hotels, etc.
Chairperson Radin attended the Council meeting on 1041 regulations last week -
https://www.fcgov.com/planning/1041-regulations - and made a statement as a local
resident not on behalf of the Water Commission with one point being that the financial
impact on Fort Collins Utilities is unknown; most commenters were from neighboring
communities, local water districts, mayor of Windsor, Northern Colorado Water
Conservancy District (“Northern Water”) and businesses speaking against the regulations;
moratorium scheduled to expire in March is expected to be extended and Council has
requested a work session on this topic.
8. OTHER BUSINESS
a. Water Commission Responsibilities
Address any questions regarding the January 11 Boards and Commissions
Orientation hosted by the City Clerk’s Office. This agenda item was combined
with agenda item #6(a)(i) “Boards and Commissions Update” earlier in the
meeting.
b. Meeting Schedule Discussion
At the February 2 work session, commissioners discussed meeting frequency;
Davina Lau confirmed City Code contains no requirements regarding the
meeting schedule, therefore Water Commission can reduce the number of
regularly meetings if desired or cancel work sessions and meetings due to lack
of agenda items.
Discussion Highlights
Commissioners commented on and inquired about various related topics
DRAFT MINUTES WATER COMMISSION
REGULAR MEETING
02/16/2023 – DRAFT MINUTES Page 6
including reducing staff workload; the idea that monthly meetings maintains
motivation of volunteers serving on the Water Commission; suggestion to keep
agenda items simple: instead of presentations, staff can attend simply to answer
questions on particular topics or reports. Mr. Graham shared that staff is very
appreciative of commissioners’ desire for effective use of staff time; timeliness
factor for feedback and recommendations to Council; desire to determine
whether agenda topics are necessary rather than simply interesting; suggestion
of scaling down presentations when necessary and appropriate; idea of field trips
to tour treatment facilities in lieu of meetings or work session; idea to eliminate
August and December meetings to correspond with summer vacation/back-to-
school schedules and holidays.
Utilities Executive Director Kendall Minor suggested following the Utilities Senior
Staff practice in which managers, one week before commission meetings, could
relay to Mr. Graham priority topics to share with the commissioners during
regular meetings and work sessions.
9. ADJOURNMENT
7:30 p.m.
These minutes will be approved by the Water Commission on March 16, 2023.
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: March 8, 2023
TO: Water Commission
FROM: Michael Neale, Water Resources Engineer
& Water Resources Division Staff
RE: February 2023 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 February and provide
updated 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
• Water Supply – During the month of February, water supply consisted of 58% from the
Cache La Poudre River, and 42% from Horsetooth Reservoir.
• Water Demand – Demands within the Water Utility service area for the month of February:
• Water demand in February was 98.4% of projected demand.
Snowpack: Natural Resources Conservation Service SNOTEL program percent of median snow
water equivalent totals as of 3/07/2023:
• Upper Colorado Basin: 121% of median.
• Poudre Basin: 109% of median.
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
Other Water Supply Considerations:
• The Colorado-Big Thompson (CBT) system currently with 100% equivalent quota in project
reserves, this on top of the initial quota allocation and carryover. See Northern Water’s
March 1 report attached.
• Water Resources Division is closely monitoring the hydrology of the Colorado River basin,
the statewide and regional discussions around the Colorado River Compact, and any demand
management action by the Federal Bureau of Reclamation in response to drought in the
Colorado River basin.
• Water Resources Division maintains close communication with Northern Water regarding
any drought response or policy action affecting the CBT system. As of now, there is no
indication of drought management action needed from Northern Water.
• If drought management action is called for, the Water Shortage Action Plan (WSAP) is in
place to guide our decisions and actions (fcgov.com/WSAP).
City of Fort Collins Utilities
Treated Water Monthly Summary
2023
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year to
Date
WTF Water Supply (MG)
From Poudre 243.3 250.6 493.9
From Horsetooth 235.3 183.8 419.1
Total Raw Water 478.6 434.4 913.0
Demands (MG)
WTF Production 468.5 425.7 894.2
Change in Storage -0.5 3.0 2.5
Demand on WTF 469.0 422.8 891.7
From Soldier Canyon 17.7 7.6 25.2
To Soldier Canyon 0.0 0.0 0.0
To FC-Lov/NWCWD -43.6 -35.3 -78.9
For City 443.0 395.1 838.1
Daily Deliveries to City (MG)
Max During Month 15.5 14.9 15.5
Min During Month 12.7 13.6 12.7
Avg During Month 14.3 14.1 14.2
Monthly Deliveries (Ac-Ft)
Projected 1,343 1,233 1,361 1,497 1,909 2,868 3,281 3,201 2,742 1,698 1,312 1,294 23,737
Actual 1,360 1,212 2,572
Ratio 101%98%11%
Year to Date Deliveries (Ac-Ft)
Projected 1,343 2,575 3,936 5,433 7,342 10,210 13,490 16,691 19,433 21,131 22,443 23,737 23,737
Actual 1,360 2,572 2,572
Ratio 101%100%11%
C-BT Project Storage
Lake Granby Storage in Lake Granby decreased 28,303 acre-feet last month
Horsetooth Reservoir Storage in Horsetooth Reservoir increased 9,040 acre-feet last month
Carter Lake Storage in Carter Lake increased 14,808 acre-feet last month
Note: Storage in pie charts represents total storage (active and dead storage).
March 1, 2023
423,861
87,074
94,255
199,908
Total Storage
Granby Carter Horsetooth Empty
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Acre‐FeetMarch 1 Total Storage
423,861
112,272
Acre‐Feet
8240
8250
8260
8270
8280
8290
Elevation (ft)94,255
62,480
Acre‐Feet
5360
5380
5400
5420
5440
Elevation (ft)87,074
25,156
Acre‐Feet
5660
5680
5700
5720
5740
5760
5780
Elevation (ft)
C-BT Project Allocated Water
C-BT Active Storage
C-BT Delivery Obligations
Notes:
March 1, 2023
1) Quota set at 40%
2) Carryover - Carryover will not be certified until April 30. Until that date, the Maximum Potential Carryover is reported
for Carryover so that adequate supplies are set aside to fulfill all potential obligations.
3) Regional Pool - Additional water will accrue to the Regional Pool until April 30. The current volume reflects water supplies not
eligible for the Carryover Program.
4) Pie chart reflects the active storage in Granby, Carter, Horsetooth and Boulder Reservoir.
100%, Project Reserves
10%, Regional Pool
(Unallocated)
36%, Certified Quota
0%, Collateral
18%, Carryover
4%, Replacement and
Contracts
3%, Windy Gap
67%,
Empty
Project Reserves
Regional Pool (Allocated)
Regional Pool (Unallocated)
Certified Quota
Collateral
Carryover
Replacement and Contracts
Windy Gap
Empty
% number represents
equivalent quota
0 50,000 100,000 150,000
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 10,000 20,000 30,000
Acre-Feet
Regional Pool
Delivered Remaining Unallocated
C-BT Project Deliveries
March 1, 2023
Deliveries by Area Deliveries by Use
0
50,000
100,000
150,000
200,000
250,000
300,000
20162017201820192020202120222023Acre-FeetAdams Tunnel
Total YTD
0 50,000 100,000 150,000 200,000 250,000
2016
2017
2018
2019
2020
2021
2022
2023
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
50%48%
2%
February
Carter
Horsetooth
Other 50%49%
1%
Water Year
Carter
Horsetooth
Other
0
50,000
100,000
150,000
200,000
250,000
2016 2017 2018 2019 2020 2021 2022 2023Acre-FeetHorsetooth Carter Other
0%
100%
February
Agriculture
M&I
0%
100%
Water Year
Agriculture
M&I
0
50,000
100,000
150,000
200,000
250,000
2016 2017 2018 2019 2020 2021 2022 2023Acre-FeetAgriculture M&I
M E M O R A N D U M
DATE: February 13, 2023
TO: Mayor Arndt and Councilmembers
FROM: Jason Graham, Utilities Water Director
THROUGH: Kelly DiMartino, City Manager
Kendall Minor, Utilities Executive Director
RE: 2022 Cameron Peak Wildfire Recovery Update
Bottom Line:
In response to the 2020 Cameron Peak Fire, Fort Collins Utilities continues to coordinate water
infrastructure, water supply, water quality, and post-fire watershed recovery strategies to ensure a
holistic and thoughtful approach to best serve our community's water needs.
2022 Emergency Watershed Recovery Activity Summary
In 2022, Fort Collins Utilities continued to work with regional recovery partners including local
water providers, state and federal agencies, consultants, and the Coalition for the Poudre River
Watershed (CPRW) to address post-fire restoration needs as detailed in the 2022-2023 Cameron
Peak Recovery workplan.
o Aerial mulching was completed on 4,150 acres in the Poudre Watershed from July
through August, bringing the 2021-2022 total to approximately 10,000 acres.
o Utilities staff provided approximately 60 hours of on-the-ground support for mulching
inspections in July & August.
o Five additional erosion control and stream stabilization projects were completed in 2022
to protect private property and downstream water quality values at risk, bringing the
total number of projects to nine. Two additional projects are expected to be completed
Spring of 2023, when weather conditions allow.
Recovery Funding Update
To date, the Fort Collins Utilities has contributed approximately $1.23M towards post-fire
watershed recovery for grant match requirements and project management services. An
additional $500,000 in City matching funds are anticipated to be needed in 2023 for projects
that were designed but not yet completed, bringing the City’s total expected expenditures to
approximately $1.68M.
Independently, Utilities also completed sediment removal and stream channel realignment work
at the Poudre River water supply intake in early 2022. The cost of this work was approximately
$750,000.
DocuSign Envelope ID: 36EC4628-F014-4C0B-AE54-1D4B13DA7A76
Beyond this limited remaining scope of work, emergency phase of watershed recovery work is
anticipated to wrap-up by mid- to late 2023.
Table 1. Provides a funding summary for post-fire watershed recovery work completed through
2022.
Table 1. Estimated Post-Fire Emergency Recovery Funding by Source, 2020-2022.
Funding Source Amount
Colorado Water Conservation Board (CWCB) $13,570,618
Natural Resources Conservation Service (NRCS-EWP) $8,617,059
United States Forest Service (USFS) $6,000,000
Colorado Dept of Public Health & Environment (CDPHE) $865,278
1City of Fort Collins (Cost Match) $1,235,211
1,2Other Local Recovery Partners (Cost Match) $1,078,358
Total $31,366,523
1 Does not include in-kind contributions of staff time and project management.
2 CPRW, City of Greeley and the East Larimer County, North Weld, and Fort Collins-Loveland Water Districts
Post-Fire Water Quality Impacts and Ongoing Monitoring
Localized, high-intensity rainfall events that occur over the Cameron Peak Fire burn scar during
the summer months may continue to create excessive runoff and debris, causing degradation of
downstream water quality in the Poudre sufficiently improves within a few hours or, in more
extreme cases, it may take up to a few days. The frequency and severity of these events is
expected to diminish in the coming years as watershed recovery progresses.
In total, the Water Treatment Facility shut off water seven (7) days in 2022 due to post-fire
erosion impacts on water quality. This was significantly fewer than 2021, during which the
intake was shut down for thirty-nine (39) days. It should be noted that twenty-two (22) of those
days were due directly to the Black Hollow flood event on July 19, 2021. In a normal year, the
number of days off the river is typically zero to 1 days for the summer months.
Utilities will continue to operate the Upper Poudre Water Quality Surveillance System during
the summer and fall months, which provides automated, real-time alerts in response to changes
in upstream water quality. This system enables water treatment operators to bypass fire-
impacted water in the Poudre River until conditions improve, thereby protecting the water
treatment process and quality of finished drinking water.
Technical support for the installation, configuration and maintenance of this system is provided
by the Utilities Watershed Program and Stormwater department.
Long-Term Watershed Recovery
The majority of remaining wildfire recovery needs are on USFS lands. In 2023 and beyond, the
US Forest Service (USFS) will utilize allocated agency funding for addressing longer -term
watershed recovery and other post-wildfire priorities.
Implementation of projects on USFS lands will be, in part, facilitated by partnership agreements
with City of Greeley and CPRW.
The City of Fort Collins will continue to work with CPRW and other partners to improve
watershed health and resilience to protect our water supplies. Financial support for this future
DocuSign Envelope ID: 36EC4628-F014-4C0B-AE54-1D4B13DA7A76
work will come from Utilities Watershed Program budgets for Watershed Protection, marking a
return to practices that were in place prior to the Cameron Peak Wildfire.
Summaries of ongoing watershed recovery work and post-fire water quality reports can be
found at https://www.fcgov.com/utilities/water-status.
CC: Tyler Marr, Deputy City Manager
Gretchen Stanford, Utilities Deputy Director, Customer Connections
Jill Oropeza, Utilities Water Quality Services Division Director
Jen Dial, Utilities Water Resources Division Manager
Mariel Miller, Water Conservation Manager, Utilities Customer Connections
City of Fort Collins Water Commission
DocuSign Envelope ID: 36EC4628-F014-4C0B-AE54-1D4B13DA7A76
Attachment A
Watershed & Water Treatment Recovery Activity Timeline
DocuSign Envelope ID: 36EC4628-F014-4C0B-AE54-1D4B13DA7A76
TIMELINE
August 2020-Januray 2021
October 2021-February 2022
March-April 2022
September-December 2022
July-October 2021
February-June 2021
• Came ron Pe ak Fi re burned 208,000 acres
• US Forest Service Burned Area Emergency
Response (BAER) Report provided initial
damage assessment
• Prioritization and planning of post-fire
restoration projects
• Structure/reservoir protection and flood
control projects
• Spring runoff
• Water Shortage Watch
• Flash flood/erosion events on river
• Post-treatment evaluation of 2021
completed projects
• Additional State and Federal funding requests
• Sediment removal upstream of the Poudre River
intake began in January
• 2022 treatment design plan completed
• Permitting for mulch staging and helicopter
landing sites on US Forest Service lands
• Deployed Poudre River water quality alert system
• Sediment removal project completed in March
May-August 2022 • Completed phase 2 of aerial mulching on highest
priority acres
• Continued work on ground erosion control projects
• Flash flood/erosion events on river
• Phase 1 aerial mulching completed
• Structure/reservoir protection and flood
control projects
• Water Shortage Watch
• Flash flood/erosion events on river
Auxiliary aids and services are available
for persons with disabilities. 10/22
POST-WILDFIRE
WATERSHED RECOVERY
• Complete ground erosion control projects,
weather permitting
• Identify remaining treatment needs and available
funding for 2023 and beyond
DocuSign Envelope ID: 36EC4628-F014-4C0B-AE54-1D4B13DA7A76
CITY OF FORT COLLINS WATER COMMISSION
March 16, 2023
AGENDA ITEM SUMMARY
2022 YEAR-END FINANCIAL OVERVIEW
STAFF Lance Smith, Utilities Strategic Finance Director
EXECUTIVE SUMMARY
Year to date financials are reported for the water, wastewater and stormwater utility enterprises
through December 2022. Operating revenues have remained good with some stagnation while
operating expenses have come under inflationary pressures on labor and materials. The result of these
pressures has been a small decrease in the operating margins for each utility in 2022. Development fees
have been weaker for these utilities than in Light & Power due to where within the City growth is
continuing. The main financial metrics for each utility exceeded their long-term targets for 2022.
ACTION REQUESTED
None at this time
BACKGROUND
Water Enterprise
This section of this report is intended to provide a summary of the financial performance of the water
utility for 2022. As the table below shows, the three main financial metrics from a long-term financial
planning perspective were met in 2022. The operating margin, the excess in operating revenues after
covering all operating expenses including depreciation, tightened in 2022 driven by operating expenses
increasing faster than operating revenues due to inflation. The debt coverage ratio has increased
significantly in recent years as almost all debt is now retired for this utility.
Strategic Financial
Plan Target 2022 2021 2020 2019 2018
Operating Margin > 2.0%6.0%9.5%11.8%12.9%16.0%
Debt Coverage Ratio > 2.0 25.5 47.6 34.1 40.5 3.8
Rate Adjustment < 5.0%5.00%2.0%0.0%0.0%5.0%
Operating Margin = (Operating Revenues from Monthly Charges) - (Operating Expenses including depreciation)
(Operating Revenues from Monthly Charges)
Debt Coverage Ratio = (Net Pledged Revenues consisting of Operating Margin + Development Fees + Earned Interest)
(Annual Debt Service Expense)
Operating revenues had grown through modest rate adjustments at an annualized rate of 3.5% over the
past decade but only increased 1.7% in 2022 without a rate increase. Total water sales continue to be
essentially flat with modest customer growth offset by conservation efforts. However, inflationary
pressures are being seen across the utilities for materials and labor.
2022 Revenues
While operating revenues grew 1.7% in 2022, total revenues associated with water services decreased
by 6.4% in 2022 over 2021 primarily due to a significant decrease in development fees and water supply
requirement fees. Revenues from raw water surcharges increased significantly in 2022 to $1.7M.
Revenues for residential services remains the largest revenue rate class.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2018 2019 2020 2021 2022
Water Operations
Operating Revenue
Operating Expense
Operating revenues exceeded the budget by $3.1M in 2022 primarily driven by raw water surcharges
which were $1.2M over budget. The continued strong residential sales along with good wholesale sales
to neighboring water districts also exceeded budget.
While non-operating revenues from development fees were just over budget, this was one-third of
development fee revenues in 2021. These fees were not sufficient to cover the capital investments in
2022. Over time development fees are set to ensure that “growth is paying its own way.” Revenues are
budgeted conservatively to account for weather variability and other uncertainties.
Residential Water Sales,
$17,482,678
Com/Indl Water Sales,
$10,115,324
Development
Fees/PIFs/Contributions,
$1,769,053
District Water Sales,
$2,549,635
Other Misc,
$2,027,875
PILOTs,
$1,802,100
Raw Water Surcharges,
$1,741,518
Water Revenues -2022
$37.5M
The three-year trend below shows stable revenues throughout the pandemic and reflects the recent
increase in volatility of development fees.
$ 1,769
$ 1,742
$ 2,550
$ 10,115
$ 17,483
$ 1,555
$ 500
$ 1,900
$ 9,400
$ 16,700
$ 0 $ 5,000 $ 10,000 $ 15,000 $ 20,000
Development Fees
Raw Water
Surcharge
District Water Sales
Comm / Industrial
Sales
Residential Sales
2022 Actual vs Budget Revenues ($K)
Budget
Actual
$ 1,504
$ 654
$ 1,964
$ 9,973
$ 17,613
$ 5,177
$ 977
$ 2,735
$ 9,814
$ 17,619
$ 1,769
$ 1,742
$ 2,550
$ 10,115
$ 17,483
$ 0 $ 4,000 $ 8,000 $ 12,000 $ 16,000 $ 20,000
Development Fees
Raw Water Surcharge
District Water Sales
Comm / Industrial Sales
Residential Sales
Year Over Year Revenues ($K)
2022
2021
2020
2022 Expenses
Total expenses for water operations and capital investment only increased 1.7% in 2022 over 2021 even
with significant inflation being realized in labor and materials. Total capital investment has consistently
been the largest expense for this utility at 25% of total expenses and exceeds depreciation (which is
estimated here).
Operating expenses were below budget in 2022 by $5.6M primarily due to water treatment not realizing
increased expenses associated with the Cameron Peak Fire. Water treatment was under the amended
budget after the $5M off-cycle appropriation by $4.1M. Water Resources and Engineering were also
significantly under budget in 2022. PILOTs refer to the 6% transfer to the General Fund for payment in
lieu of taxes (PILOTs) which exceeded the budgeted transfer based on realized operating revenues which
themselves were higher than budgeted.
Capital,
$11,346,107
Water Treatment,
$6,288,782
Admin Services,
$6,798,051
Water Resources,
$2,640,944
Transmission &
Distribution, $3,272,735
PILOTs, $1,803,318
Water Quality Lab,
$1,170,603
Water Conservation,
$977,241
Water Meters O&M,
$815,986
Engineering,
$656,621
Depreciation,
$7,750,000
Water Expenses -2022
$43.5M
Non-operating expenses associated with vehicles were under budget by $1.3M due to supply chain
issues. In total, expenses were $7.1M under budget. Just as revenues are budgeted conservatively,
expenses are budgeted adequately to ensure that the annual appropriations made by City Council are
not exceeded per Municipal Code.
The three-year trend below shows growth trends by major expense categories. The growth in water
treatment expenses reflects increase commodity prices realized in 2021 and 2022 for chemicals. Water
Resources was able to acquire some water rights on the open market in 2021. Beginning in 2022 an
annual non-lapsing appropriation will allow for Water Resources to be able to acquire specifically
targeted water rights needed to meet the anticipated community demand at full build-out. Water rights
are appreciating at more than 20% per year as the Front Range continues to grow with a limited amount
of water available to support such growth.
$ 1,171
$ 977
$ 1,803
$ 2,641
$ 4,745
$ 5,267
$ 6,289
$ 11,346
$ 1,103
$ 1,167
$ 1,701
$ 3,624
$ 4,796
$ 5,131
$ 10,474
$ 11,641
$ 0 $ 5,000 $ 10,000 $ 15,000
Water Quality Lab
Water Conservation
PILOTs
Water Resources
Distribution, Engineering & Metering
Administrative Services
Water Treatment
Capital Projects and Vehicles
2022 Actual vs. Budget Expenses ($K)
Budget
Actual
Wastewater Enterprise
This section is a summary of the financial performance of the wastewater utility for 2022. As the table
below shows, the three main financial metrics from a long-term financial planning perspective were met
in 2022. The operating margin, the excess in operating revenues after covering all operating expenses
including depreciation, remained strong in 2022 despite operating expenses increasing 8.0% while
operating revenues only increased 1.0%. The debt coverage ratio remains well above the target as well.
$ 1,140
$ 909
$ 1,727
$ 2,759
$ 4,307
$ 5,163
$ 5,284
$ 9,984
$ 1,116
$ 890
$ 1,794
$ 3,108
$ 4,430
$ 4,832
$ 6,358
$ 12,522
$ 1,171
$ 977
$ 1,803
$ 2,641
$ 4,745
$ 5,267
$ 6,289
$ 11,346
$ 0 $ 2,000 $ 4,000 $ 6,000 $ 8,000 $ 10,000 $ 12,000 $ 14,000
Water Quality Lab
Water Conservation
PILOTs
Water Resources
Distribution, Engineering
& Metering
Administrative Services
Water Treatment
Capital Projects and
Vehicles
Year Over Year Expenses ($K)
2022
2021
2020
Strategic Financial
Plan Target 2022 2021 2020 2019 2018
Operating Margin > 2.0%9.6%15.5%14.4%19.3%14.5%
Debt Coverage Ratio > 2.0 5.4 5.8 4.9 5.0 5.1
Rate Adjustment < 5.0%0.0%0.0%0.0%3.0%3.00%
Operating Margin = (Operating Revenues from Monthly Charges) - (Operating Expenses including depreciation)
(Operating Revenues from Monthly Charges)
Debt Coverage Ratio = (Net Pledged Revenues consisting of Operating Margin + Development Fees + Earned Interest)
(Annual Debt Service Expense)
Operating revenues have remained flat the last three years and are 3.3% below the high seen in 2018. A
2.0% rate increase is planned for 2023 and another 2.0% in 2024 to address this stagnation while
expenses increase. The total amount of treated wastewater continues to be essentially flat with
minimal customer growth expected. Inflationary pressures are being seen across the utilities for
materials and labor as we begin the 2023-24 budget cycle.
2022 Revenues
In 2022 total revenues associated with wastewater services increased by $650K over 2021 although
operating revenues only increased by $250K. Non-operating revenues were higher in 2022 due to more
development fee revenues and interest earnings. Revenues for residential services remain the largest
contributor.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2018 2019 2020 2021 2022
Wastewater Operations
Operating Revenue
Operating Expense
Operating revenues were under budget by $0.1M in 2022 primarily due to a decrease in residential
revenues from 2021. Development fees were higher than in 2021 and over budget by $1.0M in 2021.
Revenues are budgeted conservatively to account for weather variability and other uncertainties.
Residential WW
Sales, $15,804,431
Com/Indl WW Sales,
$5,980,055
District WW Sales,
$406,770
Other WW Sales,
$329,288
PILOTs,
$1,331,681 Development
Fees/PIFs/Contributions, $1,793,187
Wastewater Revenues -2022
$23.9M
The three-year trend below shows stable revenues throughout the pandemic and reflects the increased
development fees associated with commercial water supply requirements beginning in 2020.
2022 Expenses
Total expenses for wastewater operations and capital investment increased by 10% in 2022 compared
to 2021 because of inflation and more capital investment being made in 2022. Depreciation exceeded
$ 1,793
$ 329
$ 407
$ 5,980
$ 15,804
$ 750
$ 200
$ 425
$ 6,200
$ 15,750
$ 0 $ 5,000 $ 10,000 $ 15,000 $ 20,000
Development Fees / PIFs / Contributions
Other WW Sales
District WW Sales
Com/Indl WW Sales
Residential WW Sales
2022 Actual vs Budget Revenues ($K)
Budget
Actual
$ 1,442
$ 250
$ 415
$ 5,680
$ 15,775
$ 1,506
$ 280
$ 411
$ 5,578
$ 16,017
$ 1,793
$ 329
$ 407
$ 5,980
$ 15,804
$ 0 $ 4,000 $ 8,000 $ 12,000 $ 16,000
Development Fees / PIFs / Contributions
Other WW Sales
District WW Sales
Com/Indl WW Sales
Residential WW Sales
Year Over Year Revenues ($K)
2022
2021
2020
capital investments again in 2022 slightly. Increased capital investments will be needed in the future to
renew the systems.
Operating expenses were below budget in 2022 by $1.4M primarily due to Reclamation and Biosolids
operations at the two treatment facilities and Engineering realizing less consulting expenses and other
smaller underspends totaling $0.7M. The Pollution Control Lab as well as Trunk and Collection
maintenance were each $0.1M under budget in 2022. PILOTs which refer to the 6% transfer to the
General Fund for payment in lieu of taxes (PILOTs) were below the budgeted transfer based on realized
operating revenues which themselves were below budget.
Non-operating expenses associated with vehicles were under budget by $0.4M due to supply chain
issues. In total, expenses were $1.9M under budget excluding capital appropriations. The charts below
do not show capital budget and investment. Just as revenues are budgeted conservatively, expenses are
Water Reclamation & Biosolids ,
$5,962,094
Capital,
$6,366,934
Debt Service,
$2,095,470 Admin Services,
$4,237,380
Pollution Control
Lab, $1,184,330
Trunk &
Collection,
Engineering,
$625,538
PILOTs,
$1,338,068
Depreciation,
$6,500,000
Wastewater Expenses -2022
$30.0M
budgeted adequately to ensure that the annual appropriations made by City Council are not exceeded
per Municipal Code.
The three-year trend below shows growth trends by major expense categories. The largest upward
growth is seen in plant operations as well as Administrative Services. Engineering expenses increased as
well due to a valve maintenance program.
$ 1,184
$ 1,338
$ 1,710
$ 626
$ 2,567
$ 5,962
$ 1,243
$ 1,350
$ 1,773
$ 978
$ 2,568
$ 6,321
$ 0 $ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ 6,000 $ 7,000
Pollution Control Lab
PILOTs
Trunk & Collection
Engineering
Administrative Services
Water Reclamation & Biosolids
2022 Actual vs. Budget Expenses ($K)
Budget
Actual
Stormwater Enterprise
This section is a summary of the financial performance of the stormwater utility for 2022. As the table
below shows, the three main financial metrics from a long-term financial planning perspective were met
in 2022. The operating margin, the excess in operating revenues after covering all operating expenses
including depreciation, remained strong in 2022 with operating revenues remaining flat year over year
while operating expenses increased $0.7M from 2021. The large operating margin target of 40% is
intentional to provide operating income for the continued buildout of the stormwater infrastructure. In
2022, operating income was almost $6.4M after depreciating $3.3M. The debt coverage ratio remains
well above the target as well.
$ 1,162
$ 1,313
$ 1,668
$ 409
$ 2,517
$ 5,616
$ 1,170
$ 1,321
$ 1,527
$ 447
$ 2,364
$ 5,862
$ 1,184
$ 1,338
$ 1,710
$ 626
$ 2,567
$ 5,962
$ 0 $ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ 6,000 $ 7,000
Pollution Control
Lab
PILOTs
Trunk & Collection
Engineering
Administrative
Services
Water Reclamation
& Biosolids
Year Over Year Expenses ($K)
2022
2021
2020
Operating revenues have grown modestly the last three years at an annualized rate of 2.0% through
annexations of land into the City and infill development. A 2.0% rate increase is planned for 2023 and
another 2.0% in 2024 to address an anticipated growth in capital expenditures over the next decade.
Inflationary pressures are being seen across the utilities for materials and labor as we begin the 2023-24
budget cycle.
2022 Revenues
Total revenues associated with stormwater services increased by $445K in 2022 over 2021 despite
operating revenues being unchanged. Non-operating revenues were lower than 2021 due to less
development fees being received. Revenues for single-family residential services remain the largest
contributor.
Strategic Financial
Plan Target 2022 2021 2020 2019 2018
Operating Margin > 2.0%35.3%38.9%39.1%41.6%43.4%
Debt Coverage Ratio > 2.0 10.9 8.7 6.5 3.3 3.4
Rate Adjustment < 5.0%0.0%2.0%2.0%0.0%5.0%
Operating Margin = (Operating Revenues from Monthly Charges) - (Operating Expenses including depreciation)
(Operating Revenues from Monthly Charges)
Debt Coverage Ratio = (Net Pledged Revenues consisting of Operating Margin + Development Fees + Earned Interest)
(Annual Debt Service Expense)
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
2018 2019 2020 2021 2022
Stormwater Operations
Operating Revenue
Operating Expense
Operating revenues were below budget by $0.3M in 2022 as customer growth slowed down.
Development fees decreased by $0.6M from 2021 yet were over budget slightly by $0.3M in 2022.
While operating revenues are stable, non-operating revenues, such as development fees, are budgeted
conservatively to account for economic and other uncertainties.
Non-single Family
SW Services,
$9,918,378
Single Family
Residential SW Services,
$8,103,736
Development
Fees/PIFs/Contributions,
$836,158
Other Misc,
$403,516
Stormwater Revenues -2022
$19.3M
The three-year trend below shows stable revenues with some growth throughout the pandemic and
reflects the increased development fees in 2021.
2022 Expenses
Total lapsing expenses for stormwater operations increased by 12% in 2022 compared to 2021 with the
largest increase in the drainage and detention operations and a similar increase in minor capital
investments in equipment and vehicles. Capital appropriations for 2022 were $8M but the actual capital
investments totaled $4.4M due to the timing of initiating some of the projects.
$ 836
$ 9,918
$ 8,104
$ 570
$ 10,100
$ 8,200
$ 0 $ 2,000 $ 4,000 $ 6,000 $ 8,000 $ 10,000 $ 12,000
Development Fees/PIFs/Contributions
Commercial SW Services
Residential SW Services
2022 Actual vs Budget Revenues ($K)
Budget
Actual
$ 841
$ 9,895
$ 8,014
$ 1,420
$ 9,919
$ 8,108
$ 836
$ 9,918
$ 8,104
$ 0 $ 2,000 $ 4,000 $ 6,000 $ 8,000 $ 10,000 $ 12,000
Development Fees/PIFs/Contributions
Commercial SW Services
Residential SW Services
Year Over Year Revenues ($K)2022
2021
2020
Operating expenses were below budget in 2022 by $1.7M primarily due to Engineering realizing less
consulting expenses and other smaller underspends totaling $0.6M. Administrative expenses were
below budget $0.4M. The Payments and Transfers were also well under budget, as well, due to less
development happening within the Boxelder Basin Regional Stormwater Authority (BBRSA) payments
that the City collects and passes through to BBRSA.
Non-operating expenses associated with vehicles were under budget by $0.3M due to supply chain
issues. In total, expenses were $2.0M under budget. The charts below do not show capital budget and
investment. Just as revenues are budgeted conservatively, expenses are budgeted adequately to ensure
that the annual appropriations made by City Council are not exceeded per Municipal Code.
System Additions,
Stream Restoration and
Asset Renewal,
$5,477,390
Customer and Admin
Services, $4,142,754
Drainage and
Detention, $2,258,698
Engineering,
$1,477,257
Debt Service, $962,436
Stormwater Quality
Programs, $482,359
Depreciation,
$3,300,000
Stormwater Expenses -2022
$18.1M
The three-year trend below shows growth trends by major expense categories. The largest upward
growth is seen in Drainage and Detention operations. Stormwater quality program expenses have also
increased recently. Other expenses have fluctuated without significantly increasing year over year.
$ 482
$ 1,477
$ 3,057
$ 2,259
$ 626
$ 2,084
$ 3,464
$ 2,183
$ 0 $ 500 $ 1,000 $ 1,500 $ 2,000 $ 2,500 $ 3,000 $ 3,500 $ 4,000
Stormwater Quality Programs
Engineering
Administrative Services
Drainage and Detention
2022 Actual vs. Budget Expenses ($K)
Budget
Actual
$ 372
$ 1,526
$ 2,997
$ 1,818
$ 407
$ 1,400
$ 2,827
$ 1,883
$ 482
$ 1,477
$ 3,057
$ 2,259
$ 0 $ 500 $ 1,000 $ 1,500 $ 2,000 $ 2,500 $ 3,000 $ 3,500
Stormwater Quality
Programs
Engineering
Administrative
Services
Drainage and
Detention
Year Over Year Expenses ($K)
2022
2021
2020
STAFF RECOMMENDATION
Staff recommends continued discussions around the wholesale purchased power rate projections and
long-term financial modeling.
ATTACHMENTS:
Attachment 1 – PowerPoint presentation
03-16-2023
Lance Smith –Utilities Strategic Finance Director
2022 Budget Update
2Water Utility Financial Metrics
Strategic Financial
Plan Target 2022 2021 2020 2019 2018
Operating Margin > 2.0%6.0%9.5%11.8%12.9%16.0%
Debt Coverage Ratio > 2.0 25.5 47.6 34.1 40.5 3.8
Rate Adjustment < 5.0%5.00%2.0%0.0%0.0%5.0%
Operating Margin = (Operating Revenues from Monthly Charges) - (Operating Expenses including depreciation)
(Operating Revenues from Monthly Charges)
Debt Coverage Ratio = (Net Pledged Revenues consisting of Operating Margin + Development Fees + Earned Interest)
(Annual Debt Service Expense)
3Water Utility Revenues
$ 1,504
$ 654
$ 1,964
$ 9,973
$ 17,613
$ 5,177
$ 977
$ 2,735
$ 9,814
$ 17,619
$ 1,769
$ 1,742
$ 2,550
$ 10,115
$ 17,483
$ 0 $ 4,000 $ 8,000 $ 12,000 $ 16,000 $ 20,000
Development Fees
Raw Water Surcharge
District Water Sales
Comm / Industrial Sales
Residential Sales
Year Over Year Revenues ($K)
2022
2021
2020
4Water Utility Expenses
$ 1,140
$ 909
$ 1,727
$ 2,759
$ 4,307
$ 5,163
$ 5,284
$ 9,984
$ 1,116
$ 890
$ 1,794
$ 3,108
$ 4,430
$ 4,832
$ 6,358
$ 12,522
$ 1,171
$ 977
$ 1,803
$ 2,641
$ 4,745
$ 5,267
$ 6,289
$ 11,346
$ 0 $ 2,000 $ 4,000 $ 6,000 $ 8,000 $ 10,000 $ 12,000 $ 14,000
Water Quality Lab
Water Conservation
PILOTs
Water Resources
Distribution, Engineering
& Metering
Administrative Services
Water Treatment
Capital Projects and
Vehicles
Year Over Year Expenses ($K)
2022
2021
2020
5Wastewater Utility Financial Metrics
Strategic Financial
Plan Target 2022 2021 2020 2019 2018
Operating Margin > 2.0%9.6%15.5%14.4%19.3%14.5%
Debt Coverage Ratio > 2.0 5.4 5.8 4.9 5.0 5.1
Rate Adjustment < 5.0%0.0%0.0%0.0%3.0%3.00%
Operating Margin = (Operating Revenues from Monthly Charges) - (Operating Expenses including depreciation)
(Operating Revenues from Monthly Charges)
Debt Coverage Ratio = (Net Pledged Revenues consisting of Operating Margin + Development Fees + Earned Interest)
(Annual Debt Service Expense)
6Wastewater Utility Revenues
$ 1,442
$ 250
$ 415
$ 5,680
$ 15,775
$ 1,506
$ 280
$ 411
$ 5,578
$ 16,017
$ 1,793
$ 329
$ 407
$ 5,980
$ 15,804
$ 0 $ 4,000 $ 8,000 $ 12,000 $ 16,000
Development Fees / PIFs / Contributions
Other WW Sales
District WW Sales
Com/Indl WW Sales
Residential WW Sales
Year Over Year Revenues ($K)
2022
2021
2020
7Wastewater Utility Expenses
$ 1,162
$ 1,313
$ 1,668
$ 409
$ 2,517
$ 5,616
$ 1,170
$ 1,321
$ 1,527
$ 447
$ 2,364
$ 5,862
$ 1,184
$ 1,338
$ 1,710
$ 626
$ 2,567
$ 5,962
$ 0 $ 1,000 $ 2,000 $ 3,000 $ 4,000 $ 5,000 $ 6,000 $ 7,000
Pollution Control
Lab
PILOTs
Trunk & Collection
Engineering
Administrative
Services
Water Reclamation
& Biosolids
Year Over Year Expenses ($K)
2022
2021
2020
8Stormwater Utility Financial Metrics
Strategic Financial
Plan Target 2022 2021 2020 2019 2018
Operating Margin > 2.0%35.3%38.9%39.1%41.6%43.4%
Debt Coverage Ratio > 2.0 10.9 8.7 6.5 3.3 3.4
Rate Adjustment < 5.0%0.0%2.0%2.0%0.0%5.0%
Operating Margin = (Operating Revenues from Monthly Charges) - (Operating Expenses including depreciation)
(Operating Revenues from Monthly Charges)
Debt Coverage Ratio = (Net Pledged Revenues consisting of Operating Margin + Development Fees + Earned Interest)
(Annual Debt Service Expense)
9Stormwater Utility Revenues
$ 841
$ 9,895
$ 8,014
$ 1,420
$ 9,919
$ 8,108
$ 836
$ 9,918
$ 8,104
$ 0 $ 2,000 $ 4,000 $ 6,000 $ 8,000 $ 10,000 $ 12,000
Development Fees/PIFs/Contributions
Commercial SW Services
Residential SW Services
Year Over Year Revenues ($K)2022
2021
2020
10Stormwater Utility Expenses
$ 372
$ 1,526
$ 2,997
$ 1,818
$ 407
$ 1,400
$ 2,827
$ 1,883
$ 482
$ 1,477
$ 3,057
$ 2,259
$ 0 $ 500 $ 1,000 $ 1,500 $ 2,000 $ 2,500 $ 3,000 $ 3,500
Stormwater Quality
Programs
Engineering
Administrative
Services
Drainage and
Detention
Year Over Year Expenses ($K)
2022
2021
2020
For Questions or Comments, Please Contact:
THANK YOU!
lasmith@fcgov.com
CITY OF FORT COLLINS WATER COMMISSION
March 16, 2023
AGENDA ITEM SUMMARY
Appropriation Need for a New Utility Customer Information System and
Customer Portal
STAFF Lance Smith, Senior Director of Finance
EXECUTIVE SUMMARY
An appropriation ordinance is being brought for your consideration from the Water, Wastewater and
Stormwater enterprise funds’ to be taken from available reserves along with a similar investment from
Light & Power’s reserves. The use of these reserves is necessary to implement a modern Utility
Customer Information System – Customer Self Service Portal (CIS-CX) Solution. These funds are being
requested just as the City completes the selection of a solution partner to maintain project momentum
before professional services are contracted. This appropriation Ordinance will allow the City to secure
CIS-CX project management and solution quality assurance services through go-live, provide legal review
of professional services contracts, and provide funding for hiring contractual staff throughout the
implementation.
The total amount being requested for appropriation from all 4 utilities including Light & Power is:
Implementation Project Management and Quality Assurance $1,500,000
Contract Review and Counsel $100,000
Contractual Implementation Staffing $2,650,000
Total $4,250,000
Once the full solution scope with our preferred vendor is negotiated, another appropriation will be
requested for the direct solution costs including licensing and hardware.
ACTION REQUESTED
Does the Water Commission support the appropriation of these funds from respective utility’s
reserves to support the next phase of the modernization of the Utilities Customer Information
System?
BACKGROUND
Fort Collins Utilities is currently conducting 5 weeks of onsite product demonstrations as the final review
of proposals received for a modern Utility Customer Information System – Customer Self Service Portal
(CIS-CX) Solution. The proposals were received after a deliberate 12-month process focused on
identifying solution requirements, scrutinizing and rating every proposal received, performing reference
checks of each solution provider with other utilities that have implemented the proposed solutions,
planning the solution implementation schedule, staffing needs and quality assurance milestones, and
having employees involved in the solution selection throughout the process and asking questions of the
solution providers. As this Commission is aware, a previous effort to upgrade this system was
unsuccessful. (That effort is still in litigation with a trial anticipated later in 2023.)
This appropriation is driven by many of the lessons learned from the previous effort including the need
for more thorough due diligence before entering any software services contracts. As described below,
the funds being requested here will ensure a successful implementation and that the selected solution
partner and their CIS-CX will serve our community well as our community moves toward Our Climate
Future and evolving how we serve our ratepayers and enhancing their customer experience with their
municipal utilities.
Over the next few months, a solution partner will be selected and then a second appropriation will be
presented to this Commission before the 24-month solution implementation can begin. It is anticipated
that the City will successfully implement the new CIS-CX within 24 months, at which point the existing
solution will be retired. The Capital Improvement Plans presented to the Council Finance Committee
ahead of the 2023-24 Budgeting For Outcomes included up to $15M for this capital investment including
the implementation, change management, and the software licensing and hosting services.
This appropriation is being brought forward at this time to maintain the continuity of the
implementation schedule and to ensure that the pricing reflected in the proposals are current and
complete. Momentum for this implementation is building as staff are getting opportunities to see the
benefits of modernizing and enhancing our customer’s experience as well as focusing on simplifying the
architecture and processes behind the customer interface to provide a stable, upgradable platform.
There are three categories of funding in this next phase of the CIS-CX modernization.
Professional Quality Assurance and Project Management Services
While many existing City employees have worked for decades with the current customer information
and billing system, operating such a system requires a different skill set than upgrading or implementing
an existing system into a new system. The new system may be hosted in the cloud or a more traditional
in-house physical solution with different hardware requirements and interfaces. It may include different
modules for a customer portal, social media, bill printing, etc. To effectively implement these new
features and ensure that the City is receiving the functionality it is expecting, professional software
implementation project management and quality assurance is required.
A scope of work has been developed for these services with a maximum fee through the
implementation and go-live of the new solution. Because most of this work will be done remotely,
travel expenses have been excluded from the not to exceed price for these services. Estimating some
travel will be necessary, raises the amount being requested for these services including travel to
$1,500,000.
Contract Review and Counsel
Prior to the City entering into a binding services agreement with the solution provider outside legal
counsel may be sought as needed to ensure the final agreement is in the best interest of the City and
ratepayers. It is requested that an amount of up to $100,000 be appropriated for this purpose.
Contractual Staffing
Many of the City’s employees who work in and with the current customer information system will be
involved in the implementation of the new solution. This is a best practice to ensure that the proposed
solution is consistent with customer expectations and operational requirements. To have these
employees available to focus on the implementation, staff will be augmented by contractual staff
throughout the implementation, and post go-live quality assurance and testing. Based on the staffing
plan developed for the solution implementation, the following contractual positions are needed before
implementation:
4 Customer Service Providers $288,000 / yr
1 Customer Experience Provider $64,000 / yr
1 Billing & Accounts Receivable Specialist $80,000 / yr
1 Field Service Lead $100,000 / yr
5 Information Technology Solution Providers $575,000 / yr
$1,047,000 / yr
Because having these additional staff will be advantageous throughout the 24-month implementation
with some needed beforehand and some afterward, in total for almost 2.5 years of augmentation it is
estimated that contractual staff may require:
Contractual Staffing Appropriation = $2,650,000
In addition to the contractual staff discussed above who will backfill employees focused on the
implementation, there will be a need for additional staffing for the duration of the project who will
focus on leading testing of the solutions, developing training and training employees, implementing
organizational change management, reviewing existing business processes, and developing business
analytics for the future solution. As these additional staff are not needed initially, this staffing need will
be a part of the implementation appropriation once the solution partner is selected.
Appropriation by Enterprise Fund
As the customer information and billing system is needed by each utility to generate monthly operating
revenues, each utility requires such a system and therefore should contribute to the upgrade or
replacement of such a system. While some rates are more complicated than others and some require
meter consumption data to assess, billing for each utility requires much of the same information as any
other utility. Because electric monthly charges are more complicated than flat stormwater rates and
unmetered wastewater use, there are additional billing components for billing electric customers.
Hence, it is appropriate to attribute more of the shared costs to Light & Power. A similar argument
applies to Water billing. The annual subscription costs for this system are divided between the four
utilities as follows:
Light & Power 50.0%
Water 25.0%
Wastewater 12.5%
Stormwater 12.5%
This same cost sharing ratio is proposed for the implementation costs.
Light & Power $2,125,000
Water $1,062,500
Wastewater $531,250
Stormwater $531,250
$4,250,000
Enterprise Fund Reserve Balances
The funds being requested herein would come from available reserves of each utility. These funds are
above and beyond funds set aside within the reserves to meet minimum fund balance requirements and
any previous appropriations made but not yet spent. As the table below shows, each enterprise fund
has sufficient available reserves for both anticipated appropriations related to modernizing the CIS-CX
solution.
STAFF RECOMMENDATION
Staff recommends supporting this appropriation.
ATTACHMENTS:
Attachment 1 – PowerPoint presentation
Light & Power Water Wastewater Stormwater
Available Reserves EOY 2021 $41.4 $41.3 $19.1 $14.5
Mid-year 2022 Appropriations ($26.1)$0.0 $0.0 $0.0
2023-24 BFO Use ($1.0)($29.3)($7.7)($2.3)
2022 Revenues Above Budget $11.2 $3.5 $1.2 $0.2
2022 Expenses Below Budget $1.9 $7.4 $1.8 $2.2
Estimated Available Reserves $27.4 $22.9 $14.4 $14.6
Amount Being Requested ($2.1)($1.1)($0.5)($0.5)
Remaining Available Reserves ($M)$25.3 $21.8 $13.9 $14.1
Utilities Billing System
Appropriation
03/16/2023
Lance Smith
Senior Director of Finance for Utilities
2Project Overview
What?
•Billing system
•Customer Portal
•Customer Information System
Why?
•Existing system is 22 years old
•Highly customized
•Customer expectations
•Security
Where?
•Hosted in the cloud
•On premise servers
When?
3The Journey to here
2018 CIS Project
2021 Lawsuits
2022 Requirements Developed
4Solution Analysis and Provider Selection Timeline
5Implementation Project Management, Quality Assurance and Contract Review
Project Management
•Managing project scope, installation plans, schedule and budget
•Minimizing project risks by proactively addressing issues as they arise
•Addressing staffing challenges for the Solution Provider and City
Quality Assurance
•Product testing and process validation
•Establishing clear service level expectations
•Ensuring project requirements are met within the initial project scope
Contract Review
•Outside Counsel will ensure that the City’s and its ratepayers interests are
front and center in the solutions agreements
6Contractual Staffing for Implementation
Contractual Staffing
•Allow existing staff to focus on how the new solution will function after deployment
•Ensure operational requirements are ready before go-live
•Allow training of some staff as the implementation proceeds
•Informal trainers ready before go-live
Contractual employees will be trained to backfill the positions of staff working on the
implementation to maintain current levels of customer service and operations
7Appropriation Requested
Implementation Project Management and Quality Assurance $1,500,000
Contract Review and Counsel $100,000
Contractual Implementation Staffing $2,650,000
$4,250,000
Light & Power 50.0%$2,125,000
Water 25.0%$1,062,500
Wastewater 12.5%$531,250
Stormwater 12.5%$531,250
8Available Reserves
Light & Power Water Wastewater Stormwater
Available Reserves EOY 2021 $41.4 $41.3 $19.1 $14.5
Mid-year 2022 Appropriations ($26.1)$0.0 $0.0 $0.0
2023-24 BFO Use ($1.0)($29.3)($7.7)($2.3)
2022 Revenues Above Budget $11.2 $3.5 $1.2 $0.2
2022 Expenses Below Budget $1.9 $7.4 $1.8 $2.2
Estimated Available Reserves $27.4 $22.9 $14.4 $14.6
Amount Being Requested ($2.1)($1.1)($0.5)($0.5)
Remaining Available Reserves ($M)$25.3 $21.8 $13.9 $14.1
9Suggested Motion Language
I move that the Water Commission recommends
City Council approve the appropriation of these
funds from the respective utility’s reserves to support
the next phase of the modernization of the
Utilities Customer Information System.
QUESTIONS?
Poudre Canyon Raw
Waterline Replacement
Project
3-16-2023
Taylor Scott
Special Projects Manager
Utilities Water Engineering
2Suggested Motion
I move that the Water Commission recommend City
Council approve up to $550,000 in additional
appropriation for the Poudre Canyon Raw Waterline
Replacement Project.
•Engineer’s cost estimate for construction shows
the project may need between $150,000 and
$550,000 of additional appropriation
•Uncertainty in final construction costs due to
currently posted RFP for contractors
3Budget Offer
•2021 budget offer: $3.2 million -funded
•Environmental Health Strategic Outcome
•Supports Strategic Objectives
•ENV 4.4 –Provide a reliable, high-quality water supply
•HPG 7.8 –Maintain and protect assets and infrastructure to drive reliability, cost
effectiveness, efficiency and improve the customer experience
•ECON 3.5 –Invest in and maintain utility infrastructure and services while ensuring
predictable utility rates
•27-inch diameter waterline provides approximately one-third of the City’s water supply
•75-feet of exposed steel from waterline in the river
•High risk of failure
4Background and Objectives
Background
Objectives
•Waterline structural integrity and operation longevity
•Replace aging infrastructure from the 1950s
•Flood resiliency
•Reduce regular maintenance
•Localized river stabilization
5Location
Bellvue Laporte
Ted’s Place
Gateway Natural Area
Project location:
27-inch waterline
exposed
6Location
Project location
Gateway
Natural Area
24-inch raw
waterline
27-inch raw
waterline
Selected Design
•Design Process
•Conceptual design
•Alternative analysis
•Preliminary design of selected alternative
•Permitting and easements
•Final design
•RFP documents
•Design Summary
•New ductile iron pipe
•Concrete encased in floodplain
•Greater burial depth
•More efficient river crossing route
7
8Funding Request
•Contractor RFP currently public
•Final contractor cost estimates will determine final City Council request
•Estimating request based on Engineer’s construction cost estimate
Approved budget offer –2021 Budget Year $ 3,200,000
Additional appropriation request likely minimum
(Engineer’s cost estimate without contingency)$ 150,000
Additional appropriation request likely maximum
(Engineer’s cost estimate with contingency)$ 550,000
March 16 Water Commission meeting
April 18 City Council meeting, first reading of funding request
May 2 City Council meeting, second reading of funding request
May -June Negotiate and Notice of Award with selected contractor
October Anticipated construction start
Suggested Motion 9
I move that the Water Commission recommend City
Council approve up to $550,000 in additional appropriation
for the Poudre Canyon Raw Waterline Replacement
Project.
•Supports Environmental Outcome and multiple
Strategic Objectives
•Provide a reliable, high-quality water supply
•Maintain and protect assets and infrastructure
to drive reliability, cost effectiveness, efficiency
and improve the customer experience
•Invest in and maintain utility infrastructure and
services while ensuring predictable utility rates
For Questions or Comments, Please Contact:
Taylor Scott
tscott@fcgov.com