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HomeMy WebLinkAbout07/20/2023 - Water Commission - AGENDA - Regular Meeting WATER COMMISSION REGULAR MEETING AGENDA July 20, 2023 5:30 – 7:30 p.m. Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room 07/20/2023 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 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 July 20, 2023, 5:30 – 7:30 p.m. Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room 07/20/2023 Agenda Page 2 1. CALL TO ORDER 2. ROLL CALL 3. AGENDA REVIEW 4. COMMUNITY PARTICIPATION (3 minutes per individual) 5. APPROVAL OF MINUTES: June 15, 2023 6. UNFINISHED BUSINESS: None 7. NEW BUSINESS a. Staff Reports i. Financial Monthly Report (meeting packet only/no presentation) ii. Update on Council’s Ad Hoc Committee on Boards and Commissions (10 minutes) Davina Lau, Public Engagement Specialist/Boards and Commissions Coordinator, City Clerk’s Office 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 the above email address 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. WATER COMMISSION REGULAR MEETING AGENDA July 20, 2023, 5:30 – 7:30 p.m. Online via Zoom or in person at 222 LaPorte Ave, Colorado River Community Room 07/20/2023 Agenda Page 3 b. Regular Items i. Discussion with Mayor Jeni Arndt: (1) Water Commission’s advisory role to Council (2) Council and Water Commission Priorities (Discussion: 30 minutes) Mayor Jeni Arndt Davina Lau, Public Engagement Specialist ii. Oak Street Stormwater Improvement Project: Status and Financing (Presentation: 10 minutes, Discussion & Action: 15 minutes) Heather McDowell, Special Projects Manager Lance Smith, Utilities Strategic Finance Director Staff presented this project to Water Commission on Aug. 5, 2021 to inform commissioners on the project scope and to provide preliminary information about cost and timeline. The estimated construction start date is July 2024. City Council must approve the appropriation of funds and debt issuance by end of September 2023 to allow the chosen contractor six to eight months to procure materials and permits for construction mobilization. Staff seeks a recommendation for approval from Water Commission to City Council. iii. Second Appropriation of Funds for a Modern Customer Information and Billing System (Presentation: 5 minutes, Discussion & Action: 15 minutes) Lance Smith, Utilities Strategic Finance Director This is the second and final appropriation this year for this project. Staff presented the first appropriation to Water Commission and Energy Board in April and May. Only one City Council meeting is scheduled in July and one meeting in August; these funds must be available in early September to begin the 24-month implementation. Staff seeks a recommendation for approval from Water Commission to Council. 8. COMMISSIONER REPORTS (Committees, Event attendance, etc.) 9. OTHER BUSINESS (Commissioner concerns, Announcements) 10. ADJOURNMENT DRAFT MINUTES WATER COMMISSION REGULAR MEETING June 15, 2023, 5:30-7:30 p.m. Hybrid in person at 222 LaPorte Ave and online via Zoom 06/15/2023 – DRAFT MINUTES Page 1 1. CALL TO ORDER 5:30 p.m. 2. ROLL CALL • Commissioners Present in person: Jordan Radin (Chairperson), Paul Herman (Vice Chairperson), James Bishop, Kent Bruxvoort, Rick Kahn, Jason Tarry • Commissioners Present via Zoom: Tyler Eldridge, John Primsky, Greg Steed • Staff Members Present: Jason Graham, Katherine Martinez, Jill Oropeza, Jeremy Woolf, Jen Dial • Members of the Public: Daniel Richardson, Rob Graves 3. AGENDA REVIEW • Chairperson Jordan Radin briefly summarized items on the agenda 4. COMMUNITY PARTICIPATION • None 5. APPROVAL OF MINUTES Chairperson Radin asked for comments and revisions on the April 20 and May 18 draft minutes. Vice Chairperson Herman moved to approve the April 20 and May 18 minutes. Commissioner Bruxvoort seconded the motion. Vote on the motion: It passed unanimously, 8-0 with 1 abstention by Commissioner Eldridge due to his absence at the April 20 meeting. 6. NEW BUSINESS a. Staff Reports (Attachments available upon request) i. Financial Monthly Report (meeting packet only) Discussion Highlights No irrigation yet; water main breaks has led to increased expenditures; no DRAFT MINUTES WATER COMMISSION REGULAR MEETING 06/15/2023 – DRAFT MINUTES Page 2 rental revenue yet; customer demand is down, which leads to impact on revenue; 1% maintenance renewal rate. ii. INTRODUCTION: Jill Oropeza, Senior Director-Water Sciences and Planning Ms. Oropeza has been with Utilities for 16 years and in her new role oversees the following divisions: Water Resources, Water Quality Services (Watershed, Water Quality Lab, Pollution Control Lab), Water Production, Environmental Regulatory Affairs, and Stormwater Engineering & Development Review. She started as a specialist in the Watershed program in 2007 with a Master’s degree in Ecology with a focus on bio-geo chemistry, and built the program over 10 years. More recently, she directed the Water Quality Services division where she focused on compliance and planning for a new water laboratory facility. Director of Water Jason Graham stated the restructured Water Utility focuses on co-creation, with better and more integrated planning across divisions; he will update the Water Commission on planning efforts during future meetings. Mr. Graham stated that Ms. Oropeza was instrumental in leading the Utilities’ portion of regional fire mitigation projects after the High Park and Cameron Peak wildfires in 2012 and 2020, and is a huge asset, due to her involvement in many facets of the department’s work as well as her familiarity with various teams and projects. Discussion Highlights Commissioners congratulated and welcomed Ms. Oropeza, and commented on or inquired about various related topics, including: staffing shortages; recruitment; talent development; the perception that staffing feels more stable than a year ago despite a few roles that still need to be filled; Halligan Water Supply Project manager (who manages consultants and reports to the Director of Water); opportunities for integration; master planning; One Water approach; watershed sciences; as well as navigating funding in three separate enterprise funds (water, wastewater, stormwater). Water utility leaders see overlap in capabilities and will prioritize providing cross-training opportunities, which is already in progress in Water Field Operations and Stormwater divisions. Commissioners expressed that they are impressed with Ms. Oropeza’s expertise and are excited about her new role. DRAFT MINUTES WATER COMMISSION REGULAR MEETING 06/15/2023 – DRAFT MINUTES Page 3 iii. Water Utilities Quarterly Update Executive Director of Water Utilities Jason Graham Mr. Graham attended the East Mulberry Annexation Project meeting last week and reported that the planning and budgeting won’t begin until the area is annexed. Discussion topics included stream rehabilitation, plan for the next 10 years, including stormwater; water adequacy. Other topics of interest in Utilities include: staffing recruitment challenges (one engineering position had one applicant over six months and a GIS analyst position had 40 to 50 applicants) a proposal for all employees making less than 35% of their pay range to be moved up the salary scale in consideration of equity issues (the City normally pays 30 to 40 percent of a salary range; Utilities leaders prioritized increasing salaries to 35% of the salary range for nearly 30 employees; they’ll see the increase in their next paycheck); merit-based pay increases are in effect for most employees with exception of employees on skill ladders. Mr. Graham also attended the June 14 State of Business event presented by the Fort Collins Area Chamber of Commerce at Anheuser Bush. In the water utility, managers are working to define what a One Water Utility means through a strategic planning process; Ms. Oropeza is the project manager. The Director of Water and three senior directors (leading operations, sciences and planning, and [to be hired soon] engineering) will focus on what’s important to staff, Water Commission, and the community. Discussion Highlights Commissioners commented on or inquired about various related topics including: staff cross training and the importance of employees taking certification exams so they can move laterally within the organization. b. Regular Items (Attachments available upon request) i. Discussion: Future Planning of One Water Utility Executive Director of Water Utilities Jason Graham, Senior Director-Water Operations Jeremy Woolf, and Senior Director-Water Sciences & Planning Jill Oropeza provided an overview of future challenges and levels of service, and gave commissioners time to brainstorm ideas on principles, priorities, DRAFT MINUTES WATER COMMISSION REGULAR MEETING 06/15/2023 – DRAFT MINUTES Page 4 and alignment of the One Water mission (“We are a One Water Utility, providing exceptional water services for our community through integrated, resilient, and equitable practices and systems”) with the City’s mission (“Exceptional service for an exceptional community”). Staff’s work ahead includes Capital Improvement Plan (CIP) development and prioritization, as well as defining what One Water (“all water has value”) means for the water utility while meeting such challenges as climate change, extreme weather events, aging infrastructure, water scarcity, environmental degradation, rising costs, and a changing workforce. Discussion Highlights Commissioners commented on and inquired about various related topics including the perception that the City focuses on building new projects rather than replacement and maintenance. 7. OTHER BUSINESS A. Memo to Water Commission: Water Adequacy Mr. Graham’s memo summarized information from various City Council and Planning & Zoning Commission meeting materials. Discussion Highlights Commissioners commented on or inquired about various related topics including: reason why Planning & Zoning Commission and City Council tabled the water adequacy issue; yet to be determined whether the issue will progress; Montava development and East Larimer County Water District (ELCO); Decision Point 3 – Section 3.13.5(C)(5)(c) listed in the memo. B. Discussion: Potential memo and recommendation to City Council on Water Adequacy Determination Commissioners decided it would be premature to write a memo to City Council at this time. Discussion Highlights Commissioners commented on or inquired about various related topics including: in code the City staff doesn’t have an adequate way to determine water adequacy, staff expects to receive more of these types of request, so the issue is how to (or should/shouldn’t) other than a simple “will serve” letter from local water districts to DRAFT MINUTES WATER COMMISSION REGULAR MEETING 06/15/2023 – DRAFT MINUTES Page 5 representatives of new development. C. Discussion: Water Commissioners’ interest in facilities tours Commissioners and staff discussed which tours commissioners are interested in scheduling later this year from the following possibilities: Water Treatment Facility, Drake Water Reclamation Facility (which has a current capital project in progress), Meadow Springs Ranch, Halligan Water Supply Project (half day), stream rehabilitation/Stormwater improvement projects, Michigan Ditch (all day), Poudre Intake, and Pleasant Valley Pipeline Diversion. Discussion Highlights Commissioners decided to schedule tours of Meadow Springs Ranch and Halligan Water Supply Project. Staff will work with appropriate division managers to coordinate the tours. 8. COMMISSIONER REPORTS During a walk near townhomes under construction in south Fort Collins that morning, a Water Commissioner came across a resident who was upset about sod being installed because it’s a “huge waste of water.” A construction worker stated, “the City told us to do this” and left. The commissioner told the resident that it was probably the homeowners association (HOA) that requested the sod installation and that he should talk with the HOA about concerns. The conversation brought to light the topics of local residents’ desires for water conservation and the perceived slowness of the City to get its own xeriscape planning up and running, which could be an easy win. City Council is scheduled to address “Landscape Standards Update Discussion” including xeriscaping/landscape codes and resource needs in October, and “Amending City Code with Standards for Water-Wise Landscape, Irrigation Designs, and Practices” in November, according to the Six Month Agenda Planning Calendar: https://www.fcgov.com/cityclerk/planning-calendar ADJOURNMENT 7:35 p.m. These minutes will be approved by the Water Commission on July 20, 2023. Water Wastewater Stormwater $12,685,812 $12,756,498 Budget Actual Operating Revenues $13,252,972 $12,666,853 Budget Actual Operating Expenses $11,625,691 $11,981,640 Budget Actual Operating Revenues $8,269,491 $7,680,052 Budget Actual Operating Expenses $9,300,000 $10,328,308 Budget Actual Operating Revenues $5,069,414 $4,293,638 Budget Actual Operating Expenses 2 Water Fund Revenue in thousands Percent of Year 50.0% June Year to Date Actual Over/ (Under)Budget Actual Over/ (Under) Inc/(Dec) % Bud Recvd % Act Recvd 2023 2023 Bud 2023 2023 2023 Bud 2022 2023 2022 Residential Water Sales $ 1,445 * $ (107) $ 7,207 $ 7,216 $ 10 (A)$ (124) 40%41% Com/Indl Water Sales 828 * 61 3,503 3,662 159 (B)(121) 37%36% Raw Water Surcharge 6 * (0)14 24 10 (22) 4%1% District Water Sales 215 * (11)768 835 67 41 41%33% Other Water Sales 5 * (12)508 307 (201) (C)(2) 42%55% PILOTs 149 3 686 713 27 (4) 40%40% Operating Revenue 2,648 (66) 12,686 12,756 71 (233) 39%37% Interest Revenue 112 49 604 844 240 523 80%75% Development Fees/PIFs/Contributions 70 (45)688 380 (308) (D)(258) 28%21% Financing Sources 0 0 0 0 0 (3)0% Other Misc 4 (16)107 103 (4)22 35%27% Total Lapsing Revenue**2,834 (78)14,085 14,083 (1)51 40%37% Non-lapsing Revenue 0 0 0 TOTAL**$ 2,834 $ 14,083 $ 51 Variance Analysis: (A) (B) (C) (D) (E) (F) * ** Commercial/Industrial Water sales were 4.5% over budget and 3.2% less than YTD 2022. June billed revenue is for May and early June. Excludes transfers and unrealized gain/loss on value. Plant Investment Fees $236 (recognized $449 from unearned revenue related to 2019 FCLWD loan prepayment), Water Rights ($90). Plant Investment Fees ($251) and Water Rights ($52). Irrigation Sales ($416) (water supply didn't yield as much due to fire impacts, so rented out less water) offset by Standpipe Sales $26. Due to a lack of water rentals early in the year. Residential Water Sales were 0.1% over budget and 1.7% less than YTD 2022. Note: Water rate increase of 4.0% for 2023, as budgeted. 3 Water Fund 2023 Department Expense In thousands `Percent of Year 50.0% Excludes depreciation and transfers June Year to Date Actual (Over)/ Under YTD Bdgt Actual (Over)/ Under (Inc)/Dec Actual + PO's Spent & Committed 2023 2023 Bud 2023 2023 2023 Bud 2022 2023 by PO's Water Treatment $ 632 $ 64 $ 3,344 $ 2,858 $ 487 (A)$ 164 $ 6,441 89% Water Resources 130 (4)1,662 1,860 (198) (B)(550) $ 2,016 60% Water Quality Lab 140 (12)567 522 44 (22) $ 660 53% Subtotal WR&T $ 902 $ 48 $ 5,573 $ 5,240 $ 333 $ (407) $ 9,117 77% Transmission & Distribution 315 45 1,577 1,763 (186) (C)(464) $ 1,763 48% Water Meters O&M 84 10 652 468 184 (145) $ 468 44% Engineering 68 59 597 309 288 (D)(27) $ 408 38% Subtotal WEFS 467 114 2,825 2,540 286 (637) $ 2,638 45% Water Conservation 114 48 433 505 (72)(E)(169) $ 745 57% PILOTs 149 (3)686 713 (27)4 $ 713 40% Admin Services - CS&A 422 0 2,530 2,530 0 (343) $ 2,530 50% Other Payments & Transfers 150 (0)1,205 1,139 66 (81) $ 1,226 46% Subtotal Operating Expenses $ 2,204 $ 207 $ 13,253 $ 12,667 0 $ 586 $ (1,633) $ 16,969 60% Debt Service 0 0 0 0 0 0 $ 0 Minor Capital 0 92 1,344 552 792 (F)14 $ 844 39% Total Lapsing $ 2,204 $ 299 $ 14,597 $ 13,219 $ 1,378 $ (1,619) $ 17,813 58% Non-lapsing Expenses 851 # 2,379 (775) TOTAL $ 3,055 $ 15,597 $ (2,394) Variance Analysis: (A) (B) (C) (D) (E) (F)Transmission & Distribution $143 (awaiting approval to purchase diesel tandem dump truck rather than CNG); Water Treatment: Consulting $248, Construction Contracts $46, Other Capital Outlay $42, and Building Maint. $25 (delay in implementing a couple projects due to transition in leadership - work orders pending, should spend by YE), Vehicles/Equipment $131 (backordered Ford Lightning due plant shut-down, remainder due to needs being fleshed out, likely to spend by YE), Filter Material $100 (not using as much, potential savings by YE). Water Efficient Landscape Rebates ($71) (used as match funding for XIP grants - appropriation timing vs budget distribution, would have been flat by YE, will now be over budget $8-15 by YE due to pre-award costs), and Personnel ($49) (filled vacancies at 35% range penetration - higher than budget; kept contractual person for WEP update on beyond initial offer, over budget by ~$60 YE), offset by Consulting $30, City and Community Programs $10 (flat by YE); overages will be offset by the following underspends by year-end: $53 Consulting, $10 Hourly Personnel, and $28 Hi Efficiency and Toilet Rebates. Water Assessments ($176) (assessments can vary year to year), Contractual Labor ($56) (intended to be offset in Salaries - Contractual), Personnel ($52) (time being charged to wrong BU and allocation out error during budget development), and Other Prof. & Tech. ($16) ($40 for a new program to better monitor snow, will be over budget and intended to be offset within Water Assessments by YE), offset by Consulting $91 (turnover delayed water supply modeling). Consulting $236 ($198 Large Valve Maint behind schedule (PM departure): technical memo complete, valve inspection and testing next, under ~$150-200 by YE) and Personnel $35 (vacancy, under by YE). Chemicals $159 (demands have not picked up: cooler weather), Contract Payment to Gov't $83 (not sure of timing for payments to Greeley: Cameron Peak Fire - Watershed), Computer Hardware $53 (BFO Enh. 4.33: deciding we didn't need the BI tool and servers delayed purchase, under budget ~$15 by year-end (YE), Consulting $28, Personnel $26 (vacancies), Dues & Subscriptions $21 (waiting on Water Research Foundation membership invoice, flat by YE), Maint. Contracts $19 (saved ~$13 on UPS unit maint.), Contractual Labor $18 (less solids needed to be hauled, so doing it in-house this year; $18 under budget by YE), Testing Services $15, Solid Waste Services $14 (weather delayed hauling solid residuals to landfill), Other Repair & Maint. $13, Construction Services $12, Software Maint. $12, offset by Water Assessments ($62) (payments to Pleasant Valley pipeline higher than what was budgeted for and paid later than usual due to manager transition; will be over ~$75-100 by YE and will offset elsewhere within budget), Natural Gas ($25) (extended cold weather last winter and larger than expected price increase, potentially over budget for the year, depends on fall weather), and Project Management Services ($21) (paid invoice for Cameron Peak Fire - Watershed earlier than expected, flat by July). Street & Bridge Maint. ($142) (43 main breaks from Jan-Apr (about 1/2 of a normal year) and only 4 more through mid-July and asphalt & concrete costs very high now and Streets billing rates increase more than our budgets, should right size by Sept), Vehicle Repairs ($35) (excavator track replacement is expensive, Vac truck needed unforeseen repairs; should right size in the next couple months: no known major vehicle repairs needed), Sand & Gravel ($23) (needed for backfilling main breaks, aggregate prices inflating), Copy & Reproduction ($16) and Postage & Freight ($10) (customer letters for backflow violation, over budget by YE), and Tools & Related Supplies ($15) (expected to right size by mid Fall), offset by Personnel $43 (prior vacancies), Other Prof. & Tech. $10 (used as needed, nothing planned). 4 Wastewater Fund Revenue in thousands Percent of Year 50.0% June Year to Date Actual Over/ (Under)Budget Actual Over/ (Under) Inc/(Dec) % Bud Recvd % Act Recvd 2023 2023 Bud 2023 2023 2023 Bud 2022 2023 2022 Residential WW Sales $ 1,374 * $ 13 $ 8,170 $ 8,234 $ 64 (A)$ 279 50%52% Com/Indl WW Sales 515 * 82 2,516 2,711 195 (B)(1) 48%45% District WW Sales 36 * 2 205 214 9 9 52%53% Other WW Sales 42 * 23 82 153 71 (C)24 76%46% PILOTs 116 6 652 670 18 17 50%50% Operating Revenue 2,082 125 11,626 11,982 356 329 50%50% Interest Revenue 65 32 325 467 142 296 84%79% Development Fees/PIFs/Contributions 108 34 443 513 71 (D)201 58%29% Financing Sources 0 0 0 0 0 0 Other Misc 3 (4)33 65 32 (47) 54%44% Total Lapsing Revenue**2,258 187 12,427 13,027 600 779 51%49% Non-lapsing Revenue 0 0 0 TOTAL**$ 2,258 $ 13,027 $ 779 Variance Analysis: (A) (B) (C) (D) (E)Bad Debt Recovery $23, Lab Services $16, and House Rental $12, offset by Ranch Income ($35). * ** Plant Investment Fees $105 ($324 in March for 3 large multifamily units). June billed revenue is for May and early June. Note: Wastewater rate increase of 4.0% for 2023, as budgeted. Residential sales were 0.8% over budget and 3.5% more than YTD 2022. Septage Treatment Charge $42. Commercial/Industrial sales were 7.7% over budget and 0.03% less than YTD 2022. Excludes transfers and unrealized gain/loss on value. 5 Wastewater Fund 2023 Department Expense In thousands Percent of Year 50.0% Excludes depreciation and transfers June Year to Date Actual (Over)/ Under YTD Bdgt Actual (Over)/ Under YTD (Inc)/Dec Actual + PO's % Bud Spent & Committed 2023 2023 Bud 2023 2023 2023 Bud 2022 2023 by PO's Water Reclamation & Biosolids $ 681 $ (37)$ 3,208 $ 2,957 $ 251 (A)$ (380) $ 3,471 50% Pollution Control Lab 141 1 606 586 20 (84)702 53% Subtotal WR&T 821 (36)3,814 3,543 271 (464)4,172 51% Trunk & Collection 208 (2)936 852 84 (132)876 44% Engineering 61 17 429 210 219 (B)152 372 51% Subtotal WEFS 269 15 1,365 1,062 303 20 1,248 46% PILOTs 116 (6)652 670 (18)(17)670 50% Admin Services - CS&A 247 (0)1,482 1,482 (0)(199)1,482 50% Other Payments & Transfers 122 0 956 923 33 (161)966 43% Subtotal Operating Expenses $ 1,575 $ (28)$ 8,269 $ 7,680 $ 589 $ (821) $ 8,538 49% Debt Service 0 0 225 225 0 $ 34 225 10% Minor Capital 76 73 545 210 335 (C)$ 201 945 61% Total Lapsing $ 1,652 $ 45 $ 9,039 $ 8,115 $ 924 $ (585) $ 9,708 30% Non-lapsing Expenses 195 985 536 TOTAL $ 1,846 $ 9,100 $ (49) -$ 0 Variance Analysis: (A) (B) (C) Computer Hardware - Capital $77 (MDT Autosave Software (BFO Enhancement 4.33: decided we didn't need the BI tool and servers, which delayed purchase, under budget ~$20), Personnel $85(Vacancies), Consulting $86 and Other Professional & Technical $38 (Vendor availability and revised purchasing guidelines, expecting to spend this year), Machinery & Equipment Parts $23, Dues & Subscriptions $17 (Haven't gotten some membership renewals, yet, will spend this year),Software Maint & Support $16 (IPP Software. Will be spent by year end), Plumbing and Irrigation Supplies $14 (Wet weather has limited sprinkler audit and need. Will spend this year), offset by Chemical Supplies ($71) (Spend on chemicals that do not have a budget. Needed for treatment and meeting regulatory permit requirements. Chemical pricing has been affected by market conditions and supply chain. Reviewing cost savings in other operations items to offset), Electricity ($38) (Need to replace equipment to meet process needs and be energy efficient with blowers at MWRF, awaiting decision on MWRF, over budget by very roughly ~$100K YE), Legal Services ($24) (Increased legal services needed for the Lazy D Water Rights case. Case is still ongoing), Natural Gas ($17) (Boilers were serviced, fall and winter temps will determine year end spend). Consulting $170 ($133 related to DWRF Utility Mapping - calendarized first 1/2 of year. Project should still be completed this year), Personnel $28 (Vacancies and PM’s time being billed to projects), Other Professional & Technical $12. Trunk & Collection $158 (~$51 is for the purchase of two CUES cameras. The remainder is expected to be spent on the purchase of a crew truck later this year.). Water Reclamation & Biosolids: Motor Vehicles $54 (Loader arrived earlier than expected, will correct in June), Plant & Garage Equipment $83 ($53 invoice unexpectedly accrued to 2022), and Other Equipment $15 (Used as needed, Will spend by year end). 6 Stormwater Fund Revenue in thousands Percent of Year 50.0% June Year to Date Actual Over/ (Under)Budget Actual Over/ (Under) Inc/(Dec) % Bud Recvd % Act Recvd 2023 2023 Bud 2023 2023 2023 Bud 2022 2023 2022 Single Family Residential SW Services $ 709 * $ 9 $ 4,200 $ 4,239 $ 39 (A)$ 162 50%52% Non-single Family SW Services 864 * 14 5,100 5,161 61 (B)171 51%52% Operating Revenue 1,573 23 9,300 9,400 100 333 51%52% Interest Revenue 48 26 203 341 138 224 95%81% Development Fees/PIFs/Contributions 63 (10)438 574 137 (C)215 66%69% Financing Sources 0 0 0 0 0 0 Other Misc 2 1 7 13 6 (D)(8) 86%31% Total Lapsing Revenue**1,686 40 9,948 10,328 381 764 52%53% Non-lapsing Revenue 0 0 0 TOTAL**$ 1,686 $ 10,328 $ 764 Variance Analysis: Note: Stormwater rate increase of 3.0% for 2023, as budgeted. (A) (B) (C) (D) * ** June billed revenue is for May and early June. Flood Plain Permits $3 and Bad Debt Recovery $3. Development Inspection $20, Stormwater Development Fee $58, and Erosion Control $56. Non-Single Family fees are 1.2% greater than 2022. Single Family Residential fees are 0.9% greater than 2022. Excludes transfers and unrealized gain/loss on value. 7 Stormwater Fund 2023 Department Expense In thousands Percent of Year 50.0% Excludes depreciation and transfers June Year to Date Actual (Over)/ Under Budget Actual (Over)/ Under (Inc)/Dec Actual + PO's % Bud Spent & Committed 2023 2023 Bud 2023 2023 2023 Bud 2022 2023 by PO's Drainage and Detention $ 303 $ (4) $ 1,288 $ 992 $ 296 (A)$ (228)$ 1,196 46% Engineering 171 69 1,058 771 287 (B)(141)914 43% Stormwater Quality Programs 85 (29) 230 196 34 (C)(27)350 51% Admin Services - CS&A 296 23 1,894 1,775 119 (D)(246)1,775 50% Other Payments & Transfers 78 0 599 560 39 (E)(123)603 30% Subtotal Operating Expenses $ 933 $ 58 $ 5,069 $ 4,294 $ 776 $ (765)$ 4,838 44% Debt Service 0 0 0 0 0 11 0 0% Minor Capital 0 0 22 22 0 748 325 30% Total Lapsing $ 933 $ 58 $ 5,091 $ 4,315 $ 776 $ (5)$ 5,163 34% Non-lapsing Expenses 674 2,291 (1,281) TOTAL $ 1,608 $ 6,607 $ (1,286) Variance Analysis: (A) (B) (C) (D) (E) Personnel $63 (vacancies earlier in the year), Mowing $67 (timing of invoice payment), Street & Bridge Maintenance $12, and Traffic Control $4 (delay in invoice processing), Vehicle Repair $35 (reactionary),and Land Maintenance $39 (purchasing delays and late start due to rainy weather). Expect to be on budget by YE. Legal Services $38 (expenses related to OASIS/Open International lawsuit). Personnel $126 (vacancies - 2 filled in April and 2 remaining), and Consulting $144 (Hill Pond study has commenced, balance used as needed). Budget calendarized using 3 year average while actual transfers will be even. Will match by YE Consulting $24, and Educational Programs $16 (staffing issues in Customer Connections), offset by Hazmat Disposal ($10). 8 Created: 2023-06-29 11:05:12 [EST] (Supp. No. 146, Update 4) Page 1 of 2 Sec. 2-178. Water Commission. (a) The City shall have a Water Commission, hereafter referred to in this Section as the "Commission." The Commission shall consist of nine (9) members. (b) The County Board of Commissioners may appoint a representative of the County's Public Works Department to serve as an ex officio member to act as liaison to the Commission, who shall represent the County in coordination by the City and County of stormwater management matters. Such ex officio member shall not have voting privileges on matters coming before the Commission, and may be excluded from any executive session of the Commission. Such ex officio member shall serve for an indefinite duration; however, such appointment may be terminated by action of the City Council or the County Board of Commissioners, or upon resignation of the member. (c) The general purposes of the Commission shall be to advise the City Council in matters pertaining to water, wastewater and stormwater utility policy issues and to act as a quasi-judicial body relating to certain matters. The Commission shall have the following functions: (1) To advise the City Council regarding water rights planning, acquisition and management; service and development fees; water rental rates; annual budgets; service area delineation; master planning; development and design criteria; water conservation; public information and education; drought emergency; regulatory issues; water quality issues; and local, state and federal legislation; (2) To act as a quasi-judicial body relating to floodplain regulation variances, stormwater fee disputes, and storm drainage design criteria variances; (3) To provide advice and citizen input regarding proposed policies and actions affecting the customers of the water, wastewater and stormwater utilities; (4) To advise the City Council regarding other water-related policy issues pertaining to environmental and recreational uses of water, regional and state water issues and projects and obligations to Fort Collins citizens outside of the water utility service area; (5) To make recommendations to the City Council concerning stormwater facilities in the City, including the appropriate division of the City into separate drainage basins. These basins shall separately fund the stormwater facilities to be installed to serve each basin. The Commission shall recommend the facilities needed for each basin to provide adequate stormwater drainage in the basin. Such recommendations shall include the following for each drainage basin: a. The facilities to be installed; b. The time and schedule for installation of facilities; c. The method of assessing costs of facilities to be installed against property in the basin; and d. The portion of the cost of facilities to be funded by the property in the basin and the portion, if any, of such cost which should be paid by the City as a whole; Before making a recommendation for any stormwater project, the Commission shall analyze the project and compare the total benefits to be achieved with the anticipated cost of the project. Projects shall be recommended if the analysis indicates that the total benefits are greater than the cost of the project; (6) To review and make recommendations to the City Council on a master drainage plan to be developed for stormwater facilities by the City administration, with such recommendations to include proposed methods of funding any master drainage plan as finally approved; (7) To consider all variances and appeals from the application of the provisions of the provisions of Chapter 10 of this Code, Flood Prevention and Protection; Created: 2023-06-29 11:05:12 [EST] (Supp. No. 146, Update 4) Page 2 of 2 (8) To hear the petition of any owner or owners of property in the City who dispute the amount of the stormwater utility fee or stormwater basin fee made against such owner's property or who dispute any determination made by or on behalf of the City pursuant to and by authority of Chapter 26, Article VII of this Code and shall make such revision or modification of such charge or determination as it shall deem appropriate in accordance with § 26-520; (9) To make recommendations to City Council regarding policy or technical matters related to stormwater management. The Commission shall make comments on policy items prepared by other City departments; and (10) To hear the petition of any owner or owners of property in the City who dispute or seek a variance in the City's "Storm Drainage Design Criteria and Construction Standards." (d) Final decisions of the Commission under Subsections (c)(7), (c)(8) and (c)(10) shall be subject to the right of appeal to the City Council as set forth in § 2-46 et seq. ( Ord. No. 049, 2021 , § 2, 4-20-21) Agenda Item # 7(b)(i) Discussion with Mayor Jeni Arndt (1) Water Commission’s advisory role to Council (2) Council and Water Commission Priori�es ***The following are documents to support this discussion*** (Links as well as document copies are provided in this mee�ng packet) Council 2021-2023 Priori�es Every two years, following a Council election, the newly seated Council identifies priorities and confirms strategic direction. Council has identified 31 items as priorities for its 2021-2023 term. Visit this link htps://www.fcgov.com/council/ Click on “View Adopted Council Priori�es” (7 pages) Council Priority Updates Click on “June 2023 Update” (18 pages) Council’s Six Month Agenda Planning Calendar htps://www.fcgov.com/cityclerk/planning-calendar Water Commission Priori�es (Work Plan ) Visit htps://www.fcgov.com/cityclerk/boards/water Click on “Work Plan ” Click on “2023 – Water Commission – Work Plan ” Work Plan 2023 Water Commission Annual Work Plan The 2023 Water Commission Work Plan is focused on specific topics of interest the commissioners believe are important to the Fort Collins Water Utilities over the next year. The purpose is to dig deeper into topics of interest, keep City Staff resources allocation limited to matters of current relevance, and allow time for commissioners to learn about water-related subjects relevant to City Staff and City Council. The Budgeting for Outcomes (BFO) process has returned to a two-year cycle. During odd years staff typically focus on updating the Strategic Plan. Therefore, the Water Commission will be involved in the Strategic Plan process in 2023 by learning more about Utilities Department needs, wants and priorities before staff creates budget offers. Several recurring annual activities are described below in the Water Commission’s specific topics of interest. On an as-needed basis, the Water Commission also provides input on quasi-judicial matters such as floodplain variances, easement dedication, and property acquisition or disposition. Specific topics of interest to the Water Commission in 2023 include: 1. Strategic Planning a. Define how Capital Improvement Projects are prioritized b. How is the City utilizing the linear asset management system and master planning to allocate resources? c. Increase transparency with project prioritization 2. Halligan Water Supply Project a. City staffing, resource allocation and management structure of the project b. Project cost and project alternative evaluation c. Assist with project messaging d. Ongoing discussion about the Environmental Impact Statement (EIS) and general permitting status e. Property and easement acquisition status f. Continued implementation of the reservoir project 3. Water Conservation a. Learn more about how the Utility can implement water conservation policies that can have a significant impact on our water demand future b. Can we re-imagine our City streets without irrigated turf grass as an option? 4. Water Regionalization a. Maintain partnerships with water districts and neighboring cities and towns for issues such as fire recovery and watershed restoration, stream restoration and other issues that impact multiple entities b. Are there opportunities for cost effective and beneficial management of regionalized wastewater basins and storm drainage basins c. Coordination of Water Utilities planning with the City’s Climate Action Plan efforts d. Learn how we could work with neighboring water providers to manage future drought conditions with an understanding in the diversity of water assets 5. The City of Fort Collins Utilities’ Staffing Plan a. Learn about the Utilities’ staffing plan b. Provide input in how workloads and resource allocation are tracked to prevent “burnout” c. Answer the question, “what was learned from the Great Resignation and what can be done different as the City moves forward” The 2023 Water Commission reoccurring annual subjects and activities are as follows: Water 1. Provide input on planning and policies related to raw and treated water supply, such as the Water Supply and Demand Management Policy and raw water acquisition policies. 2. Provide input and guidance on regional water supply collaboration opportunities. 3. Provide input on ditch company share rentals and other surplus raw water rental rates. 4. Review and provide input on water conservation programs and activities. 5. Address educational topics that prepare the Water Commission for business related to water. 6. Participate in educational and public outreach efforts related to water. 7. Review and provide input on annual capital projects and Capital Improvement Plans. 8. Provide input on programs that protect water sources and improve watershed health. 9. Provide input on specific topics that are relevant to the Water Commission. Wastewater 1. Provide input on planning and policies related to wastewater, such as wastewater strategic plans dealing with infrastructure financing, workforce development, nutrient regulations, tertiary treatment, and public/private financing options. 2. Provide input on annual business such as wastewater rates and capital improvements. 3. Address educational topics that prepare the Water Commission for business related to wastewater. 4. Participate in educational and public outreach efforts related to wastewater. 5. Review and provide input on annual capital projects and Capital Improvement Plans. 6. Provide input on specific topics that are relevant to the Water Commission. Stormwater 1. Provide input on planning and policies related to stormwater, such as revisions to the Stormwater Master Plans and Low Impact Development (LID) guidelines. 2. Provide input on annual business such as stormwater rates, MS4 (Municipal Separate Storm Sewer Systems) reporting and program accomplishments. 3. Address educational topics that prepare Water Commission for business related to stormwater. 4. Participate in educational and public outreach efforts with emphasis on improving and enhancing customer awareness and understanding of stormwater programs. 5. Review and provide input on annual capital projects and Capital Improvement Plans. 6. Provide input on specific topics that are relevant to the Water Commission. THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome Proclamation Smart Irrigation Month City Clerk's Office Motion Approval of Minutes PDT Services Ordinance- 2nd Reading Making Supplemental Appropriations of Unanticipated Revenue for the Siphon Overpass Project Culture & Recreation 2.2 Address infrastructure and amenity replacement and maintenance needs of trails, parks, cultural and recreation facilities while continuing the planned buildout of the parks and paved trail systems. PDT Services Ordinance- 2nd Reading Authorizing an Extension of the Temporary Exception to the Land Use Code to Allow T-Mobile to Place a Temporary Wireless Telecommunications Facility at 1800 East Harmony Road to Replace Lost Wireless Service Coverage PDT Services Ordinance- 2nd Reading Amending the Boundary of the Fort Collins Historic Landmark at 401 Smith Street, the Loomis- Jones Property, Pursuant to Chapter 14 of the Code of the City of Fort Collins Neighborhood Livability & Social Health 1.1 Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. PDT Services Ordinance- 2nd Reading Designating the Alexander and Emma Barry Farm Property, 232 East Vine Drive, as a Fort Collins Landmark Pursuant to Chapter 14 of the Code of the City of Fort Collins Neighborhood Livability & Social Health 1.1 Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. Utility Services Ordinance- 2nd Reading Amending Chapter 26 of the Code of the City of Fort Collins Regarding Calculation and Collection of Development Fees Imposed for the Construction of New or Modified Electric Service Connections Economic Health 3.5 Invest in and maintain utility infrastructure and services while ensuring predictable utility rates. City Clerk's Office Ordinance-1st Reading First Reading of Charter Amendment Ballot Questions (x2 Referendum and Residency)High Performing Government 7.1 Financial Services Ordinance-1st Reading Appropriation of Philanthropic Revenue: Neighborhood Services Neighborhood Livability & Social Health 1.8 Financial Services Ordinance-1st Reading Appropriation of Philanthropic Revenue: Miscellaneous High Performing Government 7.7 PDT Services Ordinance-1st Reading Landing at Lemay Two Structure Plan Amendment & Rezoning Neighborhood Livability & Social Health 1.1 Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. CITY COUNCIL AGENDA PLANNING - PUBLIC 6 MONTH CALENDAR Agenda items containing action on current Council priorities as adopted by Resolution 2021-077 are shaded light orange NOTE: This document is posted every Monday and Thursday. Changes made between postings will not be reflected until the next posting. July 18, 2023 Council Meeting 7/13/2023 6-Month Planning Page 1 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome PDT Services Ordinance-1st Reading Designating the Emma Malaby Grocery Property, 313 North Meldrum Street, as a Fort Collins Landmark High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. PDT Services Ordinance-1st Reading Adopting updates regulating parking of electric scooters and shared micromobility.Transportation & Mobility 6.2 Support an efficient, reliable transportation system for all modes of travel, enhance high- priority intersection operations, and reduce Vehicle Miles Traveled (VMT). Sustainability Services Ordinance-1st Reading Authorizing Discretionary Affordable Housing Fee Credits with ARPA Funding Neighborhood Livability & Social Health 1.1 Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. Utility Services Ordinance-1st Reading Appropriating Funds for Implementation of New Utility Customer Portal and Billing System High Performing Government 7.6 Optimize technology, data analysis and process improvements to innovate, guide decisions and enhance service delivery. City Clerk's Office Resolution Making an Appointment to the Northern Colorado Regional Airport Commission High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. City Clerk's Office Resolution Directing an Intergovernmental Agreement with Larimer County and Certification of Ballot Questions for the Municipal Election to be Conducted by Larimer County in Coordination with the November 7, 2023, Coordinated Election High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Community Services Resolution Approving an Intergovernmental Agreement with Larimer County for Funding the Colorado Front Range Trail-Poudre River Trail Segment, Relating to Great Outdoors Colorado (GOCO) Grant Reimbursement Funds Culture & Recreation 2.5 Ensure safety and access to and within City parks, natural areas, paved trails, and cultural and recreation facilities for visitors and employees. Utility Services Resolution Approving an Exception to the Use of a Competitive Process for Purchase of Biosolids Dewatering Polymer for the Drake Water Reclamation Facility High Performing Government 7.7 Address current and long- term projected gap between available revenue and resources, and what is required to meet service levels set by adopted plans. Financial Services July 31, 2023 Work Session PDT Services Neighborhood Livability & Social Health 1.1 Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. Land Use Code Changes Extended Discussion July 25, 2023 Work Session Staff Report: Municipal Court & Municipal Prosecution Team Sustainable Funding 7/13/2023 6-Month Planning Page 2 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome August 1, 2023 Regular Meeting Internal & Employee Services High Performing Government 7.3 Sustainability Services Economic Health 3.2 Work with key partners to grow diverse employment opportunities in the community. City Clerk's Office High Performing Government 7.2 Maintain the public trust through a high performing Council, organizational transparency, legal and ethical behavior, and regulatory compliance Proclamation FoCo Comic Con City Clerk's Office Motion Approval of Minutes City Manager's Office Ordinance-1st Reading Appropriation of additional funds to continue the encampment cleanup pilot program Safe Community 5.7 Reduce incidents of, and impacts from, disruptive and unwanted behaviors through working closely with the community’s human service providers to offer creative approaches that balance compassion and consequences. City Manager's Office Ordinance-1st Reading Transfer of Capital Expansion Fees for Fire to PFA for Purchase of Office Building High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Financial Services Ordinance-1st Reading Items Relating to the Issuance of Bonds for the Electric and Telecommunications Fund Economic Health 3.5 Invest in and maintain utility infrastructure and services while ensuring predictable utility rates. PDT Services Ordinance-1st Reading Restorative Justice Grant Appropriation High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Police Services Ordinance-1st Reading Sound Mitigation Project for Northern Colorado Law Enforcement Training Center PDT Services Appeal Two Appeals Relating to the Ziegler-Corbett Overall Development Ballot Referral final regular meeting August 22, 2023 Review of Recommendations from the Ad Hoc Committee on Boards and Commissions Cancelled due to Neighborhood Night Out Community Report: Poudre Libraries Annual Report August 8, 2023 Work Session Community/Staff Report: 2023 Community Survey Results Review Economic Health Strategic Plan Part 2 August 15, 2023 Council Meeting 7/13/2023 6-Month Planning Page 3 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome PDT Services Transportation & Mobility 6.1 Improve safety for all modes and users of the transportation system to ultimately achieve a system with no fatalities or serious injuries. PDT Services Neighborhood Livability & Social Health 1.1 Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. Aug. 29, 2023 FIFTH TUESDAY - NO MEETING SCHEDULED Proclamation National Preparedness Month Proclamation Poudre Landmark Foundation 39th Annual Historic Homes Tour City Clerk's Office Motion Approval of Minutes City Clerk's Office Ordinance-1st Reading Considering Recommendations from the Ad Hoc Committee on Boards and Commissions High Performing Government 7.2 Maintain the public trust through a high performing Council, organizational transparency, legal and ethical behavior, and regulatory compliance PDT Services Ordinance-1st Reading Amending the Land Use Code to update reverse setback that address the distance at which new development can build from existing oil and gas facilities. Neighborhood Livability & Social Health 1.6 Transform regulations and revise procedures to increase clarity and predictability to ensure new development advances adopted City plans and policies. PDT Services Ordinance-1st Reading Approving Section 3.13 of the Land Use Code Establishing a Process for Water Adequacy Determination Environmental Health 4.4 Provide a resilient, reliable, and high-quality water supply. Sustainability Services Neighborhood Livability & Social Health 1.2 Collaborate to leverage community partners’ expertise in addressing priority PDT Services Proclamation City Clerk's Motion Approval of Minutes September 5, 2023 Council Meeting Sept. 12, 2023 Work Session Overview of Homelessness Response System and Community Report: Northern Colorado Continuum of Care Oil and Gas Operational Standards Work Session Land Use Code Changes Extended Discussion Sept. 19, 2023 Council Meeting Transportation Capital Project Prioritization Study 7/13/2023 6-Month Planning Page 4 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome Financial Services Ordinance-1st Reading 2023 Annual Adjustment Ordinance High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Financial Services Ordinance-1st Reading Authorizing the Issuance of Bonds in the Stormwater Utility Fund Economic Health 3.5 Invest in and maintain utility infrastructure and services while ensuring predictable utility rates. PDT Services Ordinance-1st Reading East Mulberry Plan Adoption Neighborhood Livability & Social Health 1.7 Advance planning efforts in the Growth Management Area, including holistic considerations for potential annexations. PDT Services Ordinance-1st Reading Mobile Home Park Livability Municipal Code Changes Neighborhood Livability & Social Health 1.8 Preserve and enhance mobile home parks as a source of affordable housing and create a safe and equitable environment for residents City Clerk's Office Resolution Repealing and Replacing Resolution 2003-008 Adopting a Policy for the use, management, and retention of Electronic Mail by the Mayor and City Council Sustainability Services Resolution Adoption of Economic Health Strategic Plan, including a Circular Economy Strategic Plan Economic Health 3.2 Work with key partners to grow diverse employment opportunities in the community. Proclamation Public Power Week (October 1-7, 2023) Customer Service Week (October 2-6, 2023) City Clerk's Office Motion Approval of Minutes Utility Services Environmental Health 4.4 Provide a resilient, reliable, and high-quality water supply. Proclamation Community/Staff Report: None scheduled Revision Cycle 2024 Budget Work Session October 3, 2023 Council Meeting Oct. 10, 2023 Work Session Community Report: Larimer County Public Health Department Update Landscape Standards, Xeriscape, and Trees Policy Update Discussion October 17, 2023 Council Meeting Sept. 26 Work Session 7/13/2023 6-Month Planning Page 5 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome City Clerk's Office Motion Approval of Minutes Financial Services Ordinance-1st Reading Annual Appropriation Ordinance (2nd reading required by 11-30)High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Financial Services Ordinance-1st Reading Adopting 2024 Budget and Appropriating the Fort Collins Share of the 2024 FY Operating and Capital Improvements Funds for the Northern Colorado Regional Airport High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Financial Services Ordinance-1st Reading Annual Appropriation Ordinance for the Fort Collins DDA High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Financial Services Ordinance-1st Reading GID No. 1 Special Meeting to Determine and Fix Mill Levy and Appropriation (Note: This meeting is a separate meeting to follow the Regular Council Meeting.) High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. Financial Services Ordinance-1st Reading Skyview GID No. 15 Special Meeting to Determine and Fix Mill Levy and Appropriation (Note: This meeting is a separate meeting to follow the GID No. 1 Meeting.) High Performing Government 7.1 Provide world-class municipal services, while recognizing the importance of multi- sector relationships and partnerships at all levels. PDT Services Transportation & Mobility 6.6 Manage parking supply and demand based on time and location in a sustainable manner. PDT Services Transportation & Mobility 6.2 Support an efficient, reliable transportation system for all modes of travel, enhance high- priority intersection operations, and reduce Vehicle Miles Traveled (VMT). Oct. 31, 2023 FIFTH TUESDAY - NO MEETING SCHEDULED Nov. 7, 2023 Council Meeting TO BE CANCELLED Advancing Transit Initiatives Update Downtown Parking System Update - Current activities, financial & maintenance trends, and seeking input on future policy/operational improvements Oct. 24, 2023 Work Session Community Report: 8th District Attorney Report 7/13/2023 6-Month Planning Page 6 THIS DOCUMENT INCLUDES ALL ITEMS PLANNED FOR COUNCIL MEETINGS AND WORK SESSIONS. Date Service Area Type Agenda Item Strategic Outcome City Manager's Office Neighborhood Livability & Social Health 1.4 Advance equity for all with an emphasis on racial justice to remove systemic barriers so that persons of all identities, including race, ethnicity, religion, gender and gender identity age, , class, sexual identity, mental and physical abilities can fully participate in City services and experience equitable community outcomes. Proclamation City Clerk's Motion Approval of Minutes Utility Services Ordinance-1st Reading Amending City Code with Standards for Water-Wise Landscape, Irrigation Designs, and Practices Environmental Health 4.4 Proclamation Human Relations Commission Awards City Clerk's Office Motion Approval of Minutes Proclamation City Clerk's Office Motion Approval of Minutes Nov. 28, 2023 Work Session Adjourned Meeting: Annual reviews for Council direct reports Nov. 14, 2023 Work Session Staff Report: Equity Office update on Native American work and Land Acknowledgement November 21, 2023 Council Meeting December 5, 2023 Council Meeting December 12, 2023 Work Session HOLD: Council End of Term Reports December 19, 2023 Council Meeting December 26, 2023 - 2023 Work Session 7/13/2023 6-Month Planning Page 7 Date Agenda Item Strategic Outcome no date Occupancy Regulations Ordinance to Change Impacted Codes and Request for Budget Appropriation for Implementation Neighborhood Livability & Social Health 1.1 Increase housing supply and choice and address inequities in housing to ensure that everyone has healthy, stable housing they can afford. October Proclamation National Disability Employment Awareness Month Date Agenda Item Strategic Outcome no date Annual Wastewater Utility Update Environmental Health 4.6 Sustain and improve the health of the Cache la Poudre River and all watersheds within Fort Collins no date Land Conservation Update: Providing Information About Several Natural Areas Acquisitions over the last 6 months. Environmental Health 4.7 Expand the Natural Areas land portfolio while simultaneously protecting existing lands and improving equitable access to nature. no date Airport Governance Transportation & Mobility 6.4 Support and invest in regional transportation connections. no date Water Supply Requirement and Excess Water Use Fee Increase Environmental Health 4.4 Provide a resilient, reliable, and high- quality water supply. REGULAR MEETING ITEMS WORK SESSION ITEMS UNSCHEDULED/UPCOMING ITEMS AGENDA ITEM SUMMARY Water Commission July 20, 2023 STAFF Lance Smith, Senior Director of Finance Heather McDowell, Special Projects Manager SUBJECT Oak Street Stormwater Improvements Project – Status and Financing EXECUTIVE SUMMARY The Oak Street Stormwater Improvement Project is a priority stormwater project in the Utility Capital Improvement Plan (CIP) because it will significantly contribute to resolving the urban flooding and stormwater quality issues in downtown Fort Collins. The Oak Street project is one of several projects identified as part of the Downtown Stormwater Improvement Program (DSIP). The DSIP was recently developed (2017-2019) as a basin-wide evaluation of existing stormwater systems and is the development of a comprehensive strategy to mitigate flood risk and damages in the Old Town Basin. The Oak Street project supports Strategic Objective SAFE 5.5 to address flooding risk for the protection of people, property, and the environment. The Oak Street project design process has been ongoing since late 2020. The final design is now complete, and construction of the project is anticipated to begin in summer of 2024. Construction will need to be funded through debt issuance which is a process that can take several months to complete. In addition, a Request for Proposal (RFP) for a construction contractor is estimated to be posted in early August 2023 and is also a several month-long process. Procuring a qualified contractor will happen concurrently with the debt issuance process so that once the funds are appropriated for the project, the construction contract can be finalized, and the contractor can begin pre-construction activities at the beginning of 2024. It is estimated that the contractor will need approximately 6 months to procure materials, subcontractors and permits prior to mobilizing for construction. The estimated debt issuance for this project is $38.8M. Current project costs are: Design (actual) = $2.20M Construction (estimated in 2024 dollars) = $39.5M Total = $41.7M Appropriated Funds (to-date) = $2.90M Estimated Debt Issuance = $38.8M The debt ordinance is scheduled to be brought to City Council on September 19, 2023, and if approved, the following appropriation ordinance will be scheduled on October 17, 2023. This will allow funds to be available and a construction contract to be finalized in December 2023. SUGGESTED MOTION LANGUAGE I move that the Water Commission recommends City Council approve the appropriation of funds and debt issuance to support the construction of the Oak Street Stormwater Improvements Project. STAFF RECOMMENDATION Staff recommends supporting this project and debt issuance to fund construction. BACKGROUND / DISCUSSION Downtown Fort Collins (the Old Town basin) is especially vulnerable to damages attributable to urban flooding. In the heart of Fort Collins, the basin encompasses the Old Town business district and surrounding neighborhoods. Some areas of downtown were established in the 1800s when little thought was given to storm drainage or the damages associated with urbanized flooding. As the basin was developed, urbanization and encroachment altered or removed the natural drainageways that existed prior to development. Most of the flooding within the Old Town basin is caused by excess rainfall that falls directly on the basin and overwhelms the existing storm sewer infrastructure. Once the storm sewers reach their capacity, excess runoff is conveyed within the streets. Some of these streets have excessively high crowns that create areas of ponding and standing water upstream of them. Flow and ponding depths in these streets can quickly reach 2-4 feet, exceeding curb heights and impacting adjacent homes and business. A recent (2019) study completed by ICON Engineering on behalf of the Utilities estimated nearly 550 structures would be damaged with an estimated damage cost of $83M to $92M as a result of the 100-year storm. Of these damaged structures, approximately half of these structures contain finished or partially finished basements that are particularly vulnerable to flood risk and pose a safety risk for people that may occupy these basements. This same study noted the repetitive nature of the flood risk with an estimated cost to the community of $151M to $165M over the next 50-years if no improvements are made. In addition, these conditions create economic, social, and environmental impacts such as public safety, business closures, traffic disruptions, and sewer overflows. As noted on the Fort Collins website, street flooding is a common occurrence within the Old Town basin. It has been documented that the Old Town basin has flooded in recent years during minor storm events and caused damage to both commercial and residential properties. Flooding has been documented within the basin in 1904, 1951, 1961, 1983, 1988, 1992, 1997, 2007, 2009 and most recently in 2018. During the storm in May 2018, the City received intense hail and rainfall. The rain gauge at the City Park Golf Course recorded 2.17 inches of rainfall in a 2-hour duration. Ponding at several intersections occurred, with excess of 2-feet of ponding at the Mulberry Street and College Avenue intersection. It was estimated that this event resulted in a runoff event between the 2- year and 10-year design storm. The Oak Street project is the first of several other stormwater improvement projects identified in the DSIP. The project will provide stormwater infrastructure including a combination of grey and green infrastructure to reduce flooding impacts along the Oak Street corridor and adjacent blocks. Large diameter storm pipes ranging in size from 48” to 78” will extend from the previously constructed Oak Street Outfall, starting at Mason Street and extending to Jackson Street near City Park. There will be approximately 8,500 linear feet of new stormwater mains along Oak Street and cross streets that extend north to Mountain Avenue and/or south to Olive Street. Green infrastructure includes water quality ponds, or “rain gardens” in three locations along the Oak Street corridor to filter street runoff. The DSIP outlines 5 separate stormwater projects that will work together to eliminate the floodplain in downtown Fort Collins. DSIP work includes hydrologic and hydraulic modeling and flood hazard mapping to show how the floodplain will be reduced with the installation of the large diameter pipelines. For the Oak Street project, this work is still ongoing and will be completed by the end of 2024, but initial analysis indicates floodplain reduction east of Shields and along the Mountain and Oak Street corridors. Floodplain reduction south of Oak Street and north of Mountain Avenue will more likely occur with the implementation of future DSIP projects such as the Maple Street and Magnolia Street projects. Additional objectives for the Oak Street project include providing streetscape enhancements in key locations along Oak Street that address multi-modal transportation needs, safety for the traveling public and locations for installation of the rain gardens. As part of the Water and Wastewater Replacement Program certain water and sewer mains in the area will be replaced, and the Streets Maintenance Program is also doing work in conjunction with this project. OUTREACH Public engagement and outreach efforts have been ongoing since the beginning of the DSIP work in 2017 to gain support for the project and raise awareness of the flood risks in downtown and the need for the proposed improvements. DSIP efforts were originally funded during the 2017/2018 BFO cycle to initiate data collection, alternatives analysis and conceptual designs for needed stormwater infrastructure. This work was presented to City Council in December of 2019 where the overall DSIP plan was outlined for Council. Since that time, outreach efforts have been ongoing and have sought public input on key design concepts. There have been two design workshops with neighboring businesses and residents, a walking tour, and door-to-door outreach. There are two websites, an Oak Street project site ourcity.fcgov.com/oak-street-workshop, and a DSIP site fcgov.com/utilities/downtown- stormwater-improvement-plan/, social media presence and a dedicated phone number for the project. The project has also been presented to several boards and commissions including City Council, Water Commission, the Executive Leadership Team, Chamber of Commerce, Downtown Development Authority, and the Arthur Ditch Board. In addition to external engagement, the design team has coordinated and sought input from over 25 different City departments or groups to ensure their input and requirements are incorporated into the final set of documents. CITY FINANCIAL IMPACTS The financial impacts of this project were taken into account with the most recent rate and debt issuance forecasts provided to this Commission and the full City Council ahead of the 2023-24 Biennial Budget. A specific budget offer (BFO Offer 4.2) was made and adopted with the 2023 budget appropriation for the anticipated debt service costs associated with a $40M debt issuance for this project. The debt issuance needed to fund this project is not expected to have a significant negative impact on the financial health of the Stormwater Enterprise Fund. The financial impact to our customers associated with this capital investment is reflected in the most recent 10-year rate forecast and the 3.0% rate increase for monthly stormwater fees approved for 2023. While the 3.0% rate increase will not fully fund the anticipated debt service from this issuance, there exists sufficient operating margin to meet the additional funds needed for debt service. In considering whether a capital project is to be funded from existing reserves or through a debt issuance, the use of current available reserves within the next 3 years is analyzed along with the anticipated debt coverage associated with the additional debt. The table below shows the inadequacy of the reserves to fund this project directly from reserves. Based on preliminary market analysis the debt service associated with a 20 year issuance of $40.0M is expected to be between $3.0M and $3.2M. The debt coverage ratio is expected to be 3.3 which is well above the bond covenant requirement of 1.15. The debt issuance associated with this project will be presented to the Council Finance Committee in August before going to the full City Council for First Reading on September 19th. ATTACHMENTS Attachment 1 – Oak Street – WC – 2023-07-23.pptx (and pdf) Oak Street Stormwater Improvements Project July 2023 Heather McDowell, PE Project Manager Project Purpose 2 The Oak Street Stormwater Improvements Project has been identified as a top priority stormwater project for the City because it will significantly contribute to resolving the urban flooding issues for downtown Fort Collins neighborhoods and businesses. Project Goals 3 Goals of the Oak Street Stormwater Project are: To Reduce Flooding in Downtown Fort Collins Project Goals 4 To Improve Water Quality to the River and Enhance Streetscapes Influent to Udall Proposed Street Improvements Rain Gardens (Water Quality Features) Project Goals Presentations and Outreach: City Council, Water Commission, ELT, Chamber of Commerce, DDA, Arthur Ditch Board, Otter Box / Blue Ocean, Key Bank, CSU, Farmer’s Market Events: 2 Design Workshops (June 2021, April 2022), Camp Sol Online: Website, with email signup for updates, DSIP Video, Facebook Twitter, Dedicated Phone Number for the Public https://ourcity.fcgov.com/oak-street-workshop https://www.fcgov.com/utilities/oak-street- stormwater-improvements-project To Engage the Community Internal Coordination and City Partners: Engineering, Planning, Streets, Traffic Ops, Parks, Park Planning, Forestry, Customer Connections, FC Moves, APP, Light & Power, Broadband, Water Utility Field Ops, Stormwater Masterplanning & Floodplain Admin, Key Accounts, ERA, Historic Preservation +25 Departments coordinated with and +100 individuals across the City have been involved in this project in some capacity since 2020 5 6Work To -Date Data Collection & History •Aerial Imagery (with drone) •Detailed Ground Survey and Utility Locates along 20 blocks in downtown •Interviewing residents •SS and SW manhole investigations •>200 Utility Potholes •Geotech Drilling (4 bores, 7 wells) •Groundwater Monitoring & Testing Design & Modeling •100% Design as of July 1st! •Coordination with W/WW Replacement Program, SMP Program, Broadband installs •SWMM Modeling and Floodplain Impacts •Pilot Study using 2D and 1D softwares Risk Identification •Tunneling locations and extents •Utility Crossings and Deep Excavation •Subsurface: Soil and/or Groundwater concerns •Weather and Construction in the Floodplain •Impacts to downtown businesses and residents including public safety Cost Estimating •Project Costs estimated from 60% Cost Estimate Construction RFP •Post RFP in August •Contractor on board by end of 2023 Oak Street Outfall Construction 2001 7Project Costs Item Details Cost Design and Consulting Fees Consultant Design Team, Field Work & Data Collection, Permitting, Cost Estimating, Public Outreach $2.20M Estimated Construction Costs Construction, Permitting, Fees, Easements, Misc Project Support, Public Outreach $39.50M Total Overall $41.70M Appropriated Funds To-Date From budget cycles 2019-2021 $2.92M Anticipated Debt Service $38.78M 8Project Financing Timeline 9 Conceptual (30%) Design & Outreach Jan 2021 - July 2021 Preliminary (60%) Design & Cost Confirm Aug 2021–Feb 2022 Budget Process Apr 2022 – Nov 2022 Final Design June 2022 - July 2023 Design Construction RFP & Contract (July 2023 – Dec 2023) Outreach Info to Public on Construction Timeline (Nov 2023 – May 2024) Pre-Construction Permits, Subs, Materials (Jan 2024 - June 2024) Construction 24-30 months estimated(July 2024– Dec 2026) Construction Financing Council Finance Committee Aug 2023 Debt Ordinance to Council Sept/Oct 2023 Appropriation Ordinance to Council Oct/Nov 2023 Appropriation of Funds Dec 2023 Suggested Motion 10 I move that the Water Commission recommends City Council approve the appropriation of funds and issuance of debt to support the construction of the Oak Street Stormwater improvements Project. Q&A 11 Questions? Thank You 12 Heather McDowell, P.E. Project Manager – Capital Projects Fort Collins Utilities (970) 416-8057 hmcdowell@fcgov.com Lance Smith Senior Director – Utilities Finance Fort Collins Utilities (970) 221-6524 lasmith@fcgov.com CITY OF FORT COLLINS WATER COMMISSION July 20, 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 Light & Power, Water, Wastewater and Stormwater enterprise funds’ available reserves. The use of these reserves is necessary to implement a modern Utility Customer Information System – Customer Self Service Portal (CIS-CX) Solution. This appropriation request is the second, and final, such request related to the new CIS-CX. The first request for $4.25M was made in March as the City was assessing vendor proposals. Those funds were appropriated earlier so that the City could begin the process of temporarily increasing staffing for the implementation while contract review and negotiations were being finalized. The City has now identified the Vendor of Choice, reviewed the functional requirements in detail with that vendor and negotiated terms of the contract sufficient to determine the amount of investment needed to successfully deploy a new CIS-CX. This appropriation request of $9,700,000, if passed by the full City Council, will provide the additional funding needed for all costs associated directly with the software deployment, software testing, training, and the organizational change management associated with moving onto a modern CIS-CX. The total amount being requested for appropriation here is: Software as a Service Implementation $3,250,000 Software Licensing through Implementation $2,400,000 Organizational Change Management $1,500,000 Testing Protocol Development and Testing $900,000 Training Development and Initial Training $900,000 Business Process Analysis and Alignment $750,000 Total $9,700,000 With this appropriation, this CIS-CX implementation will begin in October of this year and be fully operational by the end of 2025. 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 In March the initial request for funds to move ahead with the selection, implementation and deployment of a modern Utility Customer Information System – Customer Self Service Portal (CIS-CX) Solution was brought to this Committee for consideration (See Attachment 1). Following the support of this Committee at that meeting, an appropriation ordinance for $4,250,000 was adopted by the City Council. Since that time, the following progress has been made on this effort: • Following the 5 weeks of product demonstrations, the Core team deliberated before the Vendor of Choice was selected and notified; • Funding was secured through Ordinance No. 36, 2023 which allowed legal review of the proposed service contract to begin, continued pre-project management and to begin the process to temporarily backfill critical existing positions needed for this implementation; • Negotiations have been conducted on the City’s extensive contract requirements with the Vendor of Choice and refinements made to the full implementation costs; • Project staffing requirements and the project timeline have been refined. At that time it was explained that a second appropriation would be necessary before the capital investment is fully funded and the service contract could be signed. Costs associated with the full scope of the solution including data migration, software interfaces, business process mapping, organizational change management, testing and training, as well as the direct implementation of the selected CIS-CX, have been defined, discussed and negotiated by the outside project management consultants, the Vendor of Choice and Fort Collins Utilities. The funds being requested for the second, and final, appropriation associated with this software implementation will be utilized as follows: Software as a Service Implementation $3,250,000 Software Licensing through Implementation $2,400,000 Organizational Change Management (OCM) $1,500,000 Testing Protocol Development and Management $900,000 Training Development and Initial Training $900,000 Business Process Analysis and Alignment $750,000 Total $9,700,000 Software as a Service Implementation - $3,250,000 All of the Vendor of Choice’s direct costs associated with the implementation itself are included here. The chosen solution is a hosted solution, meaning that it will reside on software servers owned and maintained by the Vendor of Choice. A dedicated implementation is expected to provide over 22,000 hours toward this implementation during the 24-month implementation schedule. Software Licensing through Implementation - $2,400,000 Because this is a hosted software solution, the Vendor of Choice will begin realizing most direct costs associated with having a dedicated server at the beginning of the implementation. As such, monthly subscription fees will begin with the implementation itself, rather than at the time of going into production. Subscription fees will increase over time due to customer growth over a certain number and with modest, annual inflationary adjustments per contractual terms. Organizational Change Management - $1,500,000 The current utility billing system will have been in place for over 20 years before this 24-month implementation is completed. Software capabilities have increased tremendously over the past 20 years which is one of the primary reasons for this modernization. This change will require strategic change management to be a successful transformation of the utility customer experience. Outside change management consultants will work together with internal change agents to ensure the success of this implementation while allowing employees to adapt and embrace this change. Change management will be approached from both an organizational perspective as well as a more direct project perspective. From an organizational perspective outside change management consultants will work with Utility staff and leadership to mature the OCM capability within the organization. More specifically, focusing on how the new CIS-CX solution will be a major change itself, change management strategies will be developed and deployed to ensure the success change to this transformational application. Testing Protocol Development and Management - $900,000 Testing is critical to any software upgrade, especially those that are intended to be seamless and consistent with previous software. This implementation will require rigorous functional testing, system integration testing, operational readiness testing, stress testing, and regression and user acceptance testing. Testing scripts will have to be developed consistent with current and anticipated rate structures and business processes. Software as a Service (SaaS) is becoming more and more common with modern utility billing systems. There are several advantages to SaaS over traditional utility-hosted billing systems including having access to the latest releases of the software solution. However, in order to most efficiently manage all SaaS clients, it is necessary for software vendors to minimize the number of different release configurations clients are running at any given time. This is done through required software releases to clients throughout the year. Because of this, testing is done not just during the initial implementation but also throughout the life of the solution with new releases. Training Development and Initial Training - $900,000 Any new application requires some training but a software application that is this critical to Utilities’ success requires extensive training to ensure that employees understand and are confident and capable of utilizing the new CIS-CX. A Training Manager will help the City conduct a training needs assessment before developing training strategies, course curriculums and end user training materials specific to the job duties of each end user. All employees who will be utilizing the new CIS-CX will be trained prior to using the solution in their capacity. Business Process Analysis and Alignment - $750,000 The new CIS-CX will be capable of supporting current rate structures and customer services and through regular updates will adapt as those change in the future. In order to understand how changes to any existing business processes may affect customers, it is necessary to understand all business processes that are part of the Meter to Cash lifecycle of each utility service provided. All existing business processes with touch points to the Meter to Cash lifecycle will be documented in an “As Is” state and then refined into a “To Be” state through workshops with subject matter experts and end users. These documented business processes will then serve as the basis for developing the necessary testing, training and future business process improvements. Financial Considerations 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 $4,850,000 Water $2,425,000 Wastewater $1,212,500 Stormwater $1,212,500 $9,700,000 The total expected cost of implementing a modern, SaaS customer billing and portal will not exceed the combination of this and the previous appropriation requests: First Appropriation (Ordinance No. 36, 2023) $4,250,000 Second Appropriation $9,700,000 Total Requested Appropriations $13,950,000 Enterprise Fund Reserve Balances The funds being requested herein will need to come from available reserves of each utility. These funds are above and beyond funds set aside within the reserves to meet minimum fund balance requirements and any previous appropriations made but not yet spent. As the table below shows, each enterprise fund has sufficient available reserves for both anticipated appropriations related to modernizing the CIS- CX solution. STAFF RECOMMENDATION Staff recommends supporting this appropriation. SUGGESTED MOTION I move that the Water Commission supports bringing an appropriation ordinance forward for the consideration of the full City Council to support the licensing and full implementation of the modernization of the Utilities Customer Information System – Customer Self Service Portal. ATTACHMENTS: Attachment 1 – PowerPoint presentation ($ are in millions)Light & Power Water Wastewater Stormwater Available Reserves EOY 2022 $29.0 $45.1 $19.5 $15.0 LESS 2023-24 BFO Investments ($4.7)($19.1)($7.2)($1.6) LESS Initial CIS-CX Appropriation ($2.1)($1.1)($0.5)($0.5) Estimated Available Reserves $22.2 $24.9 $11.8 $12.9 Amount Being Requested ($4.9)($2.4)($1.2)($1.2) Remaing Available Reserves $17.3 $22.5 $10.6 $11.7 Utilities Billing System Appropriation 07/20/2023 Lance Smith Senior Director of Finance for Utilities 2Customer Information System – Customer Self-Service Portal What: A modern customer portal and billing system on a hosted platform Why: Replacing our 22-year-old billing system is essential to providing Fort Collins Utilities customers the best and safest best customer experience to interact with their community owned utility. Our priority is to provide accurate billing, convenient billing solutions, and comprehensive real time data that enhances our customer's understanding of how they use energy and water and how much they cost. When: October 2023 – 2025 At what cost: 1st Appropriation $4,250,000 2nd Appropriation $9,700,000 Total Solution Implementation $13,950,000 Ongoing Annual Subscription Fees $1,250,000 / yr. 3Use of Funds From the First Appropriation Request 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 review of the Vendor of Choice’s agreement and functional requirements are met Contractual Staffing •Allow existing staff to focus on ensuring the new solution will meet business requirements 4Additional Appropriation Requested Software as a Service Implementation $3,250,000 Software Licensing through Implementation $2,400,000 Organizational Change Management (OCM) $1,500,000 Testing Protocol Development and Management $900,000 Training Development and Initial Training $900,000 Business Process Analysis and Alignment $750,000 Total $9,700,000 5Use of Funds From the Second Appropriation Request Software as a Service (SaaS) •Dedicated host platform created and subscribed software modules loaded •Software interfaces established and customer data transferred Software Licensing •Software subscription fees are paid monthly Organizational Change Management •Outside certified Change Management Consultants will partner with internal Change Agents to ensure a successful implementation and engaged end users •Increased organizational change management capabilities Testing Protocol Development and Management •Testing protocols will be developed and executed throughout implementation and future releases Training Development and Initial Training •Training strategies and materials will be developed and deployed following a needs assessment Business Process Analysis and Alignment •All business processes in the Meter to Cash lifecycle will be documented and optimized 6Available Reserves ($ are in millions)Light & Power Water Wastewater Stormwater Available Reserves EOY 2022 $29.0 $45.1 $19.5 $15.0 LESS 2023-24 BFO Investments ($4.7)($19.1)($7.2)($1.6) LESS Initial CIS-CX Appropriation ($2.1)($1.1)($0.5)($0.5) Estimated Available Reserves $22.2 $24.9 $11.8 $12.9 Amount Being Requested ($4.9)($2.4)($1.2)($1.2) Remaing Available Reserves $17.3 $22.5 $10.6 $11.7 7Suggested Motion I move that the Water Commission supports bringing an appropriation ordinance forward for the consideration of the full City Council to support the licensing and full implementation of the modernization of the Utilities Customer Information System – Customer Self Service Portal