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HomeMy WebLinkAbout03/20/2025 - Water Commission - AGENDA - Regular MeetingWATER COMMISSION REGULAR MEETING March 20, 2025 03/20/2025 Agenda (revised 03-13-2025) Page 1 of 3 Participate online via Microsoft Teams or in person at 222 Laporte Ave., Colorado River Community Room, 1st Floor Microsoft Teams – See Link Below 1. CALL TO ORDER (5:30 PM) 2. ROLL CALL 3. AGENDA REVIEW 4. PUBLIC PARTICIPATION (3 minutes per individual) 5. APPROVAL OF MINUTES: Feb. 20, 2025 Microsoft Teams Need help? Join the meeting now Meeting ID: 225 710 197 000 Passcode: L27tV3cd Online Public Participation: The meeting will be available to join beginning at 5:00 p.m., March 20, 2025.Participants should try to sign in prior to the 5:30 p.m. meeting start time, if possible. For public comments, the Chair will ask participants to click the “Raise Hand” button to indicate you would like to speak at that time. Staff will moderate the online Teams session to ensure all participants have an opportunity to address the Water Commission. To participate: 1. Use a laptop, computer, or internet-enabled smartphone. (Using earphones with a microphone will greatly improve your audio). 2. You need to have access to the internet. 3. Keep yourself on muted status. Masks Strongly Recommended in Indoor Public Spaces While there are currently no public health orders in place, Larimer County Public Health officials strongly recommend that well-fitting, high-quality masks are worn in crowded indoor spaces. For more information, please visit fcgov.com/covid WATER COMMISSION REGULAR MEETING March 20, 2025 03/20/2025 Agenda (revised 03-13-2025) Page 2 of 3 6. UNFINISHED BUSINESS None 7. NEW BUSINESS a. Staff Reports i. Financial Monthly Report (Meeting packet only/No presentation/Staff available for questions) (5 minutes) Joe Wimmer, Utilities Finance Director ii. Memo: Items Relating to Code Updates for Water Utility Fees (Meeting packet only/No presentation/Staff available for questions) (5 minutes) Randy Reuscher, Lead Analyst, Utility Rates Two minor code updates on consent calendar for April 1 City Council meeting. iii. Water Efficiency Plan (Discussion and feedback only/No action requested) (Presentation: 15 minutes, Discussion: 15 minutes) Alice Conovitz, Water Conservation Specialist b. Regular Items i. Oak Street Stormwater Project – Additional Appropriation (Presentation: 20 minutes, Discussion & Action: 10 minutes) Matt Fater, Director, Civil Engineering Heather McDowell, Special Projects Manager Staff will provide an update on the construction of the Oak Street Stormwater Improvements Project as well as request a recommendation to City Council regarding a supplemental budget appropriation. 8. COMMISSIONER REPORTS (Committees, event attendance, etc.) WATER COMMISSION REGULAR MEETING March 20, 2025 03/20/2025 Agenda (revised 03-13-2025) Page 3 of 3 9. OTHER BUSINESS (Commissioner concerns, announcements) a. Recognition of Outgoing Commissioners Eldridge and Primsky Gratitude and thanks for their contributions for terms ending March 31. b. Reappointment and New Commissioners i. Commissioner Herman has been reappointed. ii. Commissioners Laura Chartrand and Carson Madryga will join the Water Commission in April. c. Officer Election in May Chairperson Radin will ask commissioners to consider nominating themselves or others for Chairperson and Vice Chair at the May 15 regular meeting. d. 2025 Tours for Water Commissioners Chairperson Radin will ask commissioners of any interest in touring projects or facilities in late summer or early fall. Possible tours: i. Water Quality Lab & Pollution Control Lab ii. Meadow Springs Ranch e. Work Session: April 3 i. Director of Water Field Operations (WFO) Andrew Gingerich will present an update on WFO projects, and seeks commissioners’ feedback on any related topics of interest they would like to see included in the presentation and discussion. ii. Senior Director of Integrated Water Sciences and Planning Jill Oropeza will provide a recap of One Water Strategic Planning- Phase I and a look ahead at Phase 2. 10. ADJOURNMENT (7:30 PM) Page 1 of 5 DRAFT Unapproved MINUTES Water Commission DRAFT unapproved MINUTES REGULAR MEETING Thursday, February 20, 2025 – 5:30 PM 222 Laporte Ave., Fort Collins, CO 80521 The Water Commission advises the City Council regarding water, wastewater and stormwater policy issues such as water rights, planning, acquisition and management, conservation and public education, floodplain regulations, storm drainage and development design criteria. Read more: https://www.fcgov.com/cityclerk/boards/water 1. CALL TO ORDER (5:35 PM) 2. ROLL CALL a. Board Members Present: Chairperson Jordan Radin, Vice Chair Tyler Eldridge; Commissioners Richard Kahn, Paul Herman, Nick Martin, Nicole Ng, Greg Steed. (Vice Chair Eldridge and Commissioner Steed attended remotely via Teams and arrived after minutes approval due to technical difficulties.) b. Board Members Absent: James Bishop, John Primsky c. Staff Members Present: Jill Oropeza, Nicole Poncelet-Johnson, Matt Fater, Jeremy Woolf, Julia Feder, Gregg Stonecipher, Leslie Hill d. Guests: Rob Graves, Lori Graves 3. AGENDA REVIEW 4. COMMUNITY MEMBER PARTICIPATION: None 5. APPROVAL OF MINUTES: Nov. 21, 2024 • Commissioner Herman moved to approve the minutes as presented • Commissioner Ng seconded the motion • Vote on the motion: passed unanimously 5-0 6. UNFINISHED BUSINESS: None 7. NEW BUSINESS a. STAFF REPORTS (See https://www.fcgov.com/cityclerk/boards/water for meeting documents including presentations) i. Financial Monthly Report. A commissioner inquired about operating revenue compared to budget. Staff listed the following reasons: warm and dry weather, increased demand, and a rare 90-degree day in October. Page 2 of 5 DRAFT Unapproved MINUTES ii. Dec. 19 Memo to Council: “2024 Fall Water Quality Update – Upper Cache la Poudre Watershed.” Commissioners inquired whether there were any issues of concern mentioned by staff in the memo or report: there were none. iii. Draft 2025 Natural Areas Strategic Framework Natural Areas Environmental Planning Manager Julia Feder presented the framework, which has been in the works for a year and a half and is in the revise plan phase, with a draft plan available for public comment. Key considerations voiced by many community members: “Protecting water bodies and water quality are highly valued.” The framework provides grounding direction for the department’s Conservation and Stewardship Planning process and serves as an update to the 2014 Natural Areas Master Plan. It aims to define a 10- year vision and department values, in addition to updating existing goals. Ms. Feder informed the Water Commission that the draft document is now available for public review at https://ourcity.fcgov.com/natural- areas-strategic-framework, and requested comments through the online questionnaire or their staff liaison. Staff will revise the draft plan according to public comments in April and will return to Water Commission on May 15 for a recommendation to City Council per the commission’s request. The updated plan is scheduled for adoption by Council on June 17. Discussion Highlights: Commissioners commented on or inquired about various related topics including what appears to be competing goals (balancing public access vs. strengthening habitats, to which Ms. Feder replied by explaining staff uses various assessment tools for prioritizing ecological stewardship), whether the draft plan will affect existing projects (Yes: now is a good time in various large projects for staff to apply the framework; for example, the Arapaho Bend project is in early stages of using Budgeting for Outcomes funding toward conceptual planning -- 60 to 90 percent design -- over the next two years); whether Natural Areas staff works in partnership with Water Utilities staff on projects involving bodies of water, particularly those that act as ditches to move water from one area to another (Ms. Feder replied the Water Utilities staff are among their closest working partners within the City – particularly Stormwater Engineering and Development Review division, stream rehabilitation program, and Water Quality Services division – to discuss common goals and leverage City dollars in the most strategic way). iv. One Water Utilities Biannual Update One Water Executive Director Nicole Poncelet-Johnson presented the first of two updates this year. Presentation covered (a) Utilities’ Customer Service & Administration (CS&A) reorganization, (b) Key Projects Update, and (c) 2025 One Water Goals. Page 3 of 5 DRAFT Unapproved MINUTES (a) CS&A has disbanded and groups have been reassigned to City Finance, City Communications & Public Involvement Office (CPIO), Light & Power, and One Water. Water Conservation division is now reporting to Integrated Water Sciences & Planning within One Water. The Engineering and Capital Projects team are recipients of (1) an external stakeholder engagement specialist and (2) an asset management data scientist. Utilities is paying for positions regardless of where they landed, to support Utilities-related work. (b) 2025 One Water Goals: see complete list in presentation within agenda meeting packet. Highlights: sustain river and healthy watersheds while delivering high-quality water; establish enterprise project management office; Halligan Water Supply Project; complete One Water Laboratory land acquisition and funding strategy, and initiate design; leverage Water Commission’s expertise; improve water district partnerships; workforce and talent funnel development. Discussion Highlights: Commissioners commented that they would like to work with staff to align the Water Commission Annual Work Plan with these goals and serve as a resource to staff. 8. BOARD MEMBER REPORTS: None 9. OTHER BUSINESS a. Commissioner question: Consider revising regular meeting frequency given cancellation rate i. Discussion Highlights: A commissioner proposed fewer regular meetings and work sessions given the number of cancellations over the past year. Discussion included various ideas to address this issue, such as reviewing agendas further in advance (60 days) to fill the agenda with meaningful topics or cancel, while also maintaining flexibility for agenda items that may come up on short notice that are related to (a) staff requests for the Water Commission recommendations to Council ahead of Council approval or adoption, and (b) the Water Commission’s role as a quasi-judicial body for floodplain variance request hearings. b. Commissioner question: In light of California wildfires, what is Fort Collins Utilities’ readiness to provide adequate water supply for responding to urban wildfires? i. Discussion Highlights: Ms. Oropeza and Ms. Poncelet-Johnson explained that such urban wildfires are wind-driven events that no urban water system, on that scale, has the ability to fight. Most water distribution systems are designed to fight a house fire, not multiple blocks. That said, there is a broader conversation needed. Ms. Oropeza Page 4 of 5 DRAFT Unapproved MINUTES shared that opportunities exist within the water system to address operational readiness, standard operating procedures, and additional measures, such as partnership with colleagues in other City departments who work on such issues as vegetation management and emergency preparedness; that process is kicking off within the next several months. Commissioners and staff mentioned related topics such as building codes, water supply, Poudre Fire Authority, design, infrastructure, and partnering with local water districts to help provide water to a certain area in the case of such large-scale urban emergencies. In the case of the Southern California wildfires, the wind decreased, and additional fire fighters came on the scene, contributing to their ability to contain the fires. Water Treatment Facility Plant Director Gregg Stonecipher shared that there are high-level, policy, philosophical, and mission-oriented questions that staff need to answer. Public health is engrained in every water utility employee as the primary mission. At the same time, water utilities in the state were founded on the mission of fire protection. Mr. Stonecipher posed the question: at what point do community members not care whether the water is safe to drink as long as we prevent their houses from burning down? Senior Director of Integrated Water Operations Jeremy Woolf pointed out that in the recent Los Angeles-area wildfires they lost power to pumps and water distribution system. City of Fort Collins’ Water Treatment Facility is supplied by two different circuits from one substation providing redundant power to the Water Treatment Facility, plus the electrical distribution system is underground, which provides additional logistical advantage and resiliency. Staff has had preliminary discussions about (a) volume of water in storage tanks and how they’re operated at different times during the year, as well as (b) ideas for the water system’s future that would require investment and time. Mr. Stonecipher added that one huge advance of the City’s water distribution system is that it's gravity-fed; a loss of power doesn’t necessarily mean a loss of water pressure for most of the system. c. Staff recommends Water Commission reschedule the June 19 regular meeting to June 26 due to Juneteenth holiday (City offices will be closed). Discussion Highlights: Commissioners agreed to the recommendation. d. Staff recommends Water Commission consider as the date approaches: reschedule Dec 18 regular meeting to Dec 4 work session due to its proximity to the holiday. Discussion Highlights: Commissioners agreed to the recommendation. Page 5 of 5 DRAFT Unapproved MINUTES e. 2025 Work Sessions (1st Thursdays of even-numbered months) will be located at Utilities Service Center, 700 Wood St., unless otherwise noted> Discussion Highlights: Commissioners acknowledged the announcement. f. Water Resources Archive at Colorado State University • Patricia J. Rettig, Water Resources Archive at CSU, shared links to the City of Fort Collins Water Board meeting documents and papers of former chairperson Norm Evans (meeting agendas, minutes, reports, correspondence, his notes, and reports from other municipal water systems that he collected) • Papers of Norman A. Evans (full collection)(1906-2014) • Fort Collins Water Board section (1954-2014) Discussion Highlights: Commissioners acknowledged the resources. g. Reminder: Council Code of Conduct instructs Boards and Commissions members to identify themselves and clarify whether they are speaking personally or as a representative when providing public comment • Link to code • The code is listed on the City Clerk’s website Discussion Highlights: Commissioners acknowledged the announcement. h. Reminder: Respectful Workplace Policy applies to all City employees, Boards and Commissions, and City Council • Link to policy • The policy is on the City’s website under Legal Disclaimers > Notice of Non-Discrimination Discussion Highlights: Commissioners acknowledged the announcement. 10. INTRODUCTION OF 2025 STAFF LIAISON: Senior Director of Integrated Water Sciences and Planning Jill Oropeza introduced herself and shared that she’s glad to serve in this role. She mentioned Business Support III Katherine Martinez, out due to illness, as the other half of the commission support duo this year. 11. ADJOURNMENT (7:00 PM) Minutes to be approved by the Chair and a vote of the Water Commission on 03/20/2025 Signature: Water Wastewater Stormwater $33,505,000 $37,491,702 Budget Actual Operating Revenues $28,500,172 $27,073,002 Budget Actual Operating Expenses $24,670,000 $25,603,587 Budget Actual Operating Revenues $17,948,126 $16,589,089 Budget Actual Operating Expenses $18,960,000 $23,181,598 Budget Actual Operating Revenues $10,852,327 $9,698,549 Budget Actual Operating Expenses Water Fund Revenue in thousands Percent of Year 100.0% December Year to Date Actual Over/ (Under)Budget Actual Over/ (Under) Inc/(Dec) % Bud Recvd % Act Recvd 2024 2024 Bud 2024 2024 2024 Bud 2023 2024 2023 Residential Water Sales $ 1,205 * $ 78 $ 18,210 $ 18,925 $ 715 (A)$ 2,477 104% 115% Com/Indl Water Sales 571 * (42) 9,970 10,681 711 (B)1,280 107% 114% Excess Water Use Surcharge 141 * (29) 630 1,839 1,209 898 292% 195% District Water Sales 360 * 172 2,060 2,970 910 (C)508 144% 121% Other Water Sales 36 * 13 825 1,134 309 591 137% 209% PILOTs 115 0 1,810 1,941 131 232 107% 114% Operating Revenue 2,428 192 33,505 37,492 3,987 5,986 112% 119% Interest Revenue 288 196 1,105 2,527 1,423 (D)542 229% 127% Development Fees/PIFs/Contributions 179 45 1,615 2,614 999 (E)1,306 162% 200% Financing Sources 361 361 0 367 367 212 236% Other Misc.110 (87) 420 479 59 (F)144 114% 143% Total Lapsing Revenue**3,366 706 36,645 43,479 6,834 8,191 119%123% Non-lapsing Revenue 15 66 (4) TOTAL**$ 3,382 $ 43,545 $ 8,187 Variance Analysis: (A) (B) (C) (D)Per Treasury: higher than budgeted income due to being able to take advantage of the higher bond yields the market has been producing. (E) (F) * ** Overly conservative budget estimate for FCLWD (corrected in 2025-26 budget) as well as additional revenue due to temporarily providing water during the Soldier Canyon plant shut down. Residential Water Sales were 3.9% over budget and 15.1% more than 2023. Note: Water rate increase of 4.0% for 2024, as budgeted. Commercial/Industrial Water sales were 7.1% over budget and 13.6% more than 2023. December billed revenue is for November and early December. Excludes transfers and unrealized gain/loss on value. Repair Charges $175 (received settlement for AB Transmission Main that was struck). Contribution in Aid of Construction $474 (FCLWD and NWCWD payment for 2014 Pleasant Valley Pipeline Munroe Turnout Screen and Sedimentation Basin), Water Rights $372 (mainly a large senior living complex in February), and Plant Investment Fees $73 (would have been under if not for Accounting recognition of $496 from unearned revenue related to 2019 FCLWD loan prepayment). Water Fund 2024 Department Expense In thousands `Percent of Year 100.0% December Year to Date Actual (Over)/ Under YTD Bdgt Actual (Over)/ Under (Inc)/Dec Actual + PO's Spent & Committed 2024 2024 Bud 2024 2024 2024 Bud 2023 2024 by PO's Water Treatment $ 749 $ (88) $ 6,557 $ 6,534 $ 23 $ (353) $ 6,576 100% Water Resources 143 (53) 3,548 3,344 203 (37) $ 3,344 94% Water Quality Lab 131 1 1,294 1,306 (13)(A)(84) $ 1,306 101% Subtotal WR&T $ 1,023 $ (139) $ 11,399 $ 11,185 $ 214 $ (473) $ 11,226 98% Transmission & Distribution 452 15 3,844 3,878 (34)(B)133 $ 3,902 102% Water Meters O&M 112 (34) 1,348 1,109 238 (C)(205) $ 1,109 82% Engineering 49 44 941 438 503 (D)146 $ 438 47% Subtotal WEFS 612 26 6,133 5,425 708 75 $ 5,450 89% Water Conservation 143 (10) 1,327 1,063 264 (E)24 $ 1,063 80% PILOTs 115 0 1,810 1,941 (131)(F)(231) $ 1,941 107% Admin Services - CS&A 439 (0) 5,270 5,270 (0) (391) $ 5,270 100% Other Payments & Transfers 200 492 2,561 2,188 373 (G)24 $ 2,188 85% Subtotal Operating Expenses $ 2,532 $ 368 $ 28,500 $ 27,073 0 $ 1,427 $ (973) $ 27,139 95% Debt Service 0 0 0 0 0 0 $ 0 Minor Capital 76 607 1,924 869 1,054 (H)(52) $ 934 49% Total Lapsing $ 2,608 $ 975 $ 30,424 $ 27,942 $ 2,482 $ (1,025) $ 28,073 92% Non-lapsing Expenses 3,353 14,197 (1,752) TOTAL $ 5,961 $ 42,139 $ (2,777) Variance Analysis: (A) (B) (C) (D) (E) (F) (G) (H) Personnel ($47) (position budgeted 100% at PCL but should have been 50/50 PCL/WQL and no vacancies), offset by Federal Gov't Services $19 (haven't received Q4 USGS invoice, pursuit underway). $185 related to BFO offer 4.40 for Meter Crawlspace Conversions due to contractor for meter box installations awarded in early May and delays in getting mailing addresses, under budget by year-end and $147 encumbered and working toward extending the work order completion date to utilize the PO carryforward process and continue work in 2025) and other small underspends. Street & Bridge Maint. ($108) and Traffic Control ($76) (95 water main breaks 4 year average is 98, overages due to repairs after planned work and increased costs for asphalt patching (up 30%) and concrete repairs from Streets (Streets labor up 8-10%, equipment costs up, etc.)), Clothing Supplies ($17) (clothing allowance doubled this year due to inflation and comparing clothing spend in other water operations), Building Maintenance ($12) (number of office upgrades, furniture, etc.), Food & Meals ($16) (increased frequency of crew appreciation lunches and team sit-downs and increased cost), Vehicle Repair ($11) (had to replace transmissions on backhoe and loader), offset by Personnel $100 (vacancies, conservatively budgeted Allocations Out offset by Hourlies, Standby Pay, and Termination Pay), Solid Waste Services $31 (recycled soil to county sites instead of hauling to landfill, avoiding landfill fees), Motor Fuel, Oil, and Grease $29 (conservatively budgeted per Ops Services, historically underspent), Tools & Related Supplies $24 (intentionally underspent by delaying purchases to help offset overages), and Other Professional & Technical $27 (reactionary item). Consulting $121 (CIS project paying for MyWater/Watersmart), High Efficiency Rebate $65, Urinal & Toilet Rebates $40 (spending depends on projects and is highly variable, but are expecting a large multi-family invoice to come in Dec), Personnel $15 (Primarily in hourly labor offset by Regular labor and Assumed Vacancy Factor (no vacancies)), Water Efficient Landscape Rebates $47 (still approving project costs for participants), and Conservation Incentives $10 (Natural Areas paying for Garden in a Box intended to use this for XIP minor amendments), offset by Grants ($24) (revised programming, overage offset in Water Efficient Landscapes), and City & Community Programs ($17). Water Treatment: Consulting $161 (might spend down depending on timing, e.g. Asset Risk & Resiliency Assessment), Water Filter Material $134 (media replacement performed as part of capital project and 25-26 BFO offer reduced), Security Equipment $51, Construction Contracts $44, Other Capital Outlay $38, Mechanical & Heavy Equipment $26, and Engineering Services $16, Computer Hardware $15, and Lab Supplies $12, offset by Building Improvements ($21), Building Maintenance Services ($17) (for annual inspections and repairs to existing roofs), and Machinery & Equipment Parts ($11). Transmission & Distribution: Mechanical & Heavy Equipment $630 (awaiting delivery and upfitting for 2 dump trucks delay related to clean energy grant agreement - carrying forward $419; $62 as vehicle swap hadn't posted at time of report) and Motor Vehicles ($49) (purchased an extra F150 that wasn't budgeted for and want to take advantage of $8 grant match). Consulting $277 ($200 dedicated to BFO offer 4.5 Large Valve Maintenance, which is on hold until Purchasing Policies around emergency repairs are figured out; considering reappropriation), Personnel $165 (vacancies), Other Professional & Technical $18, and Software Maint. & Support $15. Contingency $500 offset by Legal Services ($88) (related to Open International lawsuit) and Building Maintenance Services ($47) (unanticipated repairs to 701 Wood St). PILOTs (Payment In Lieu Of Taxes) are 6% of operating revenues that are paid to the General Fund. Revenue is over budget thus this expense is as well. Wastewater Fund Revenue in thousands Percent of Year 100.0% December Year to Date Actual Over/ (Under)Budget Actual Over/ (Under) Inc/(Dec) % Bud Recvd % Act Recvd 2024 2024 Bud 2024 2024 2024 Bud 2023 2024 2023 Residential WW Sales $ 1,451 * $ 68 $ 16,860 $ 17,092 $ 232 (A)$ 529 101% 103% Com/Indl WW Sales 446 * 39 5,790 6,210 420 (B)334 107% 106% District WW Sales 37 * 2 420 450 30 23 107% 105% Other WW Sales 34 * 18 210 429 219 (C)33 204% 108% PILOTs 116 8 1,390 1,424 34 51 102% 104% Operating Revenue 2,084 135 24,670 25,604 934 971 104% 104% Interest Revenue 163 114 582 1,505 923 (D)351 259% 130% Development Fees/PIFs/Contributions 175 97 935 867 (68)(E)210 93% 132% Financing Sources 62 62 0 139 139 139 Other Misc.40 (375) 489 159 (331)(F)8 32% 105% Total Lapsing Revenue**2,523 33 26,676 28,273 1,597 1,678 106%106% Non-lapsing Revenue 0 0 (4) TOTAL**$ 2,523 $ 28,273 $ 1,674 Variance Analysis: (A) (B) (C)Septage Treatment Charge $216. (D) (E)Plant Investment Fees ($93). (F) * ** Residential sales were 1.4% over budget and 3.2% more than YTD 2023. Commercial/Industrial sales were 7.2% over budget and 5.7% more than YTD 2023. Excludes transfers and unrealized gain/loss on value. Per Treasury we should have higher than budgeted income due to being able to take advantage of the higher bond yields the market has been producing. Ordiance 179 created budget for unanticipated revenue. December billed revenue is for November and early December. Note: Wastewater rate increase of 4.0% for 2024, as budgeted. Wastewater Fund 2024 Department Expense In thousands Percent of Year 100.0% Excludes depreciation and transfers December Year to Date Actual (Over)/ Under YTD Bdgt Actual (Over)/ Under YTD (Inc)/Dec Actual + PO's % Bud Spent & Committed 2024 2024 Bud 2024 2024 2024 Bud 2023 2024 by PO's Water Reclamation & Biosolids $ 735 $ (20) $ 7,120 $ 6,571 $ 549 (A)$ (148) $ 6,571 92% Pollution Control Lab 138 (3) 1,386 1,247 139 (43) 1,247 90% Subtotal WR&T 872 (23) 8,506 7,818 688 (191) 7,818 92% Trunk & Collection 225 (24) 2,064 1,976 88 (167) 1,976 96% Engineering 54 5 661 457 204 (B)21 457 69% Subtotal WEFS 279 (19) 2,725 2,433 293 (146) 2,433 89% PILOTs 114 (4) 1,390 1,422 (32) (49) 1,422 102% Admin Services - CS&A 257 0 3,085 3,085 0 (226) 3,085 100% Other Payments & Transfers 196 492 2,242 1,831 410 (176) 1,831 82% Subtotal Operating Expenses $ 1,718 $ 447 $ 17,948 $ 16,589 $ 1,359 $ (789) $ 16,589 92% Debt Service 0 2,099 2,287 2,287 0 $ (166) 2,287 100% Minor Capital 442 (66) 1,327 841 486 (C)$ 243 841 63% Total Lapsing $ 2,161 $ 2,479 $ 21,563 $ 19,718 $ 1,845 $ (711) $ 19,718 60% Non-lapsing Expenses 1,391 7,722 (1,413) TOTAL $ 3,551 $ 27,440 $ (2,124) -$ 0 Variance Analysis: (A) (B) (C) Under budget in Personnel $127 (Vacancies), Consulting Services $192 (POs for ongoing projects have been carried forward into 2025), Machinery & Equipment Parts $100, Other Prof & Tech Services $82 (Change in requirements are delaying work. POs carried forward into 2025), Land Maintenance Services $30, Software Maint & Support Serv $24, Conference and Travel $22, Legal Services $11 (No ongoing cases.), and Education & Training Services $10. Offset by Laboratory Supplies ($16) (More supplies needed than expected), Vehicle Repair services ($22) (High mileage work truck needed repairs), Electricity ($34) (Warmer weather than anticipated, construction projects underway and rate increases), Chemical Supplies ($68) (Other Chemical Supplies $115, Sodium Hypochlorite ($1), Ferric Chloride ($5), Magnesium Chloride ($42), Carbon ($31), Polymer ($36), Magnesium Chloride ($42), Magnesium Hydroxide ($67). Under budget in Personnel $56 (Vacancies), Consulting Services $89 (POs carried forward into 2025), Other Prof & Tech Services $23, and Software Maint & Support Serv $10. Trunk & Collection $751: Mechanical & Heavy Equipment $808 (POs carried forward into 2025. Awaiting JE to process for internal purchase of large vehicle). Offset by Motor Vehicles and Accessories ($57), Water Reclamation & Biosolids $57: Motor Vehicles and Accessories $165(Used to offset overage in Plant & Garage Equipment.), Other Equipment $20, and Security Equipment $13. Offset by Mechanical & Heavy Equipment ($17), Plant & Garage Equipment ($124) (Purchased miscellaneous replacement parts for equipment. Offset by underspend in Motor Vehicles and Accessories.), Pollution Control Lab: $10 Other Equipment (Used for unexpected repairs. Needs did not exceed the budget). Stormwater Fund Revenue in thousands Percent of Year 100.0% December Year to Date Actual Over/ (Under)Budget Actual Over/ (Under) Inc/(Dec) % Bud Recvd % Act Recvd 2024 2024 Bud 2024 2024 2024 Bud 2023 2024 2023 Single Family Residential SW Services $ 748 * $ 20 $ 8,560 $ 8,834 $ 274 (A)$ 251 103% 103% Non-single Family SW Services 908 * 55 10,400 10,769 369 (B)309 104% 103% Operating Revenue 1,656 74 18,960 19,602 642 561 103% 103% Interest Revenue 261 229 374 2,450 2,076 (C)1,223 655% 200% Development Fees/PIFs/Contributions 154 79 900 1,049 149 (D)51 117% 105% Financing Sources 0 0 0 0 0 0 Other Misc.15 (236) 266 80 (186)(E)(13) 30% 86% Total Lapsing Revenue**2,086 147 20,501 23,182 2,681 1,822 113%109% Non-lapsing Revenue 0 0 0 TOTAL**$ 2,086 $ 23,182 $ 1,822 Variance Analysis: Note: Stormwater rate increase of 3.0% for 2024, as budgeted. (A) (B) (C) (D) (E) * ** Per Treasury we should have higher than budgeted income due to being able to take advantage of the higher bond yields the market has been producing. Non-Single Family fees were 3.5% over budget and are 3.0% greater than 2023. Single Family Residential fees were 3.2% over budget and are 2.9% greater than 2023. Excludes transfers and unrealized gain/loss on value. December billed revenue is for November and early December. Stormwater Development Fee $128, Erosion Control Inspection $31. Offset by Development Review Charges ($13) Ordiance 179 created budget for unanticipated revenue. Stormwater Fund 2024 Department Expense In thousands Percent of Year 100.0% Excludes depreciation and transfers December Year to Date Actual (Over)/ Under Budget Actual (Over)/ Under (Inc)/Dec Actual + PO's % Bud Spent & Committed 2024 2024 Bud 2024 2024 2024 Bud 2023 2024 by PO's Drainage and Detention $ 257 $ (53) $ 2,694 $ 2,641 $ 53 (A)$ (178) $ 2,641 98% Engineering 177 (14) 1,965 1,718 246 (B)(123) 1,718 87% Stormwater Quality Programs 45 11 705 522 183 (C)1 522 74% Admin Services - CS&A 307 (0) 3,680 3,680 (0) (257) 3,680 100% Other Payments & Transfers 107 753 1,808 1,138 671 (D)487 1,138 63% Subtotal Operating Expenses $ 894 $ 698 $ 10,852 $ 9,699 $ 1,154 $ (70) $ 9,699 89% Debt Service 1,941 99 3,125 3,026 99 (2,361) 3,026 97% Minor Capital 22 29 1,634 1,173 461 (E)(942) 1,173 72% Total Lapsing $ 2,856 $ 826 $ 15,612 $ 13,897 $ 1,714 $ (3,374) $ 13,897 89% Non-lapsing Expenses 4,661 14,887 (10,363) TOTAL $ 7,517 $ 28,784 $ (13,737) Variance Analysis: (A) (B) (C) (D) (E) Under budget in Personnel $127 (Vacancies), Street & Bridge Maintenance $67 (Reactionary to needs), Solid Waste Services $37(Based on waste quantities to landfill), Consulting Services $30 (Reactionary to needs), Motor Fuel, and Oil & Grease $16 (Reactionary to vehicle/equipment use and fuel prices). Offset by Leased Equip Rental Services ($10) (Leased a large Vac Truck unexpectedly for production needs), Clothing Supplies ($10) (Employee allowances increased in 2024), Health & Safety Supplies ($11) (Higher than anticipated needs), Conference and Travel ($11) (Reactionary to training needs and opportunities. Partially offset by an underspend in Education & Training Services of $6 at YE), Tools & Related Services ($13) (Higher than expected needs), Sewer Pipe & Accessories ($31) (Replaced a large gear actuator for flood control and other reactionary items), Maintenance Contracts ($59), and Land Maintenance ($79) (Large tree project). Drainage & Detention Min Cap $461: Mechanical & Heavy Equipment $86 (Being used to offset overage in Motor Vehicles and Accessories). Offset by Motor Vehicles and Accessories ($255) (Purchase of a vactor truck. Overage is offset by Mechanical & heavy Equipment) Under budget in Consulting $155 (Used as needed), Personnel $99 (Vacancies earlier in the year), Conference and Travel $15, and Software Main & Support Serv $11. Offset by Easements ($48) (services provided by City Real Estate Services). Under budget in Disposal of Hazmat $93, Consulting Services $54, Educational Programs $26 (Due to new Comms staff), and Other Prof & Tech Services $14. Under budget in Disposal of Hazmat $75 (primarily timing, but likely under at YE), Consulting Services $57, Educational Programs $25 (due to new Comms staff, under by YE), and Other Prof & Tech Services $14. Utilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.221.6748 rreuscher@fcgov.com fcgov.com/utilitiesUtilities MEMORANDUM Date: To: Through: From: March 14, 2025 Water Commission Staff Liaison Jill Oropeza, Senior Director, Integrated Water Sciences & Planning Randy Reuscher, Lead Analyst, Utility Rates Heidi Hansen, Water Utilities Development Review Manager BOTTOM LINE BACKGROUND Plant Investment Fee (SPIF) are key components of the City’s water utility fees, ensuring that Docusign Envelope ID: 364F01F2-5277-4FF6-8D6A-8B63CB203730 Duplex Service Splitting – There are roughly two dozen known duplexes in the Fort Collins Utilities service area served by one water meter, but with separate dwelling unit owners, many of which were constructed in the 1970’s. Currently, duplexes served by a single water line are required to pay the difference in WPIF, SPIF, and WSR fees when converting from a single meter to two separate meters. This ordinance allows the Utilities Executive Director to waive these fees when engineering and plumbing conditions support the split without additional system impact. Having separate meters in place will allow for the monthly billing for each dwelling unit to be billed separately to each customer. This will also provide separate winter quarter average (WQA) calculations for each dwelling and allow wastewater services to be billed separately for these customers. Revised WSR Calculation for Large Lots – The current WSR calculation method for residential large lots assumes outdoor irrigation of the entire lot based on 10 gallons per sq ft. In these cases, where the property is currently served by well water, this estimate makes it prohibitively expensive to connect large single-family residential properties to City water. Given the size of these lots, these customers generally do not irrigate the full parcel area. The new proposed calculation will cap the 10 gallons per sq ft assumption at ½ acre. Any area beyond 1/2 acre will require a hydrozone-based approach for the remaining area. This will more closely align WSR fees with their actual expected water use and allow more customers to convert from well water, where their well has either failed or they are challenged with lead or similar issues, to connect to City water. These changes support equitable fee structures while maintaining responsible water resource management. The waiver of development fees is expected to have minimal impact on the Water Fund, given the number of eligible duplexes within the Fort Collins Utilities service territory is estimated to be only a few dozen customers. It is estimated that each duplex conversion to two water meters would save a customer ~$1,300 in the proposed fee waiver, depending Docusign Envelope ID: 364F01F2-5277-4FF6-8D6A-8B63CB203730 on lot size, which equates to roughly $32,500 less in revenue for the Water Fund if all eligible duplexes applied to split, although the requests are expected to be minimal from year-to-year. Revising the WSR calculation for residential large lots could potentially have a significant financial benefit for a particular parcel, but the number of large lots within the Fort Collins water service territory is estimated to be low. Additionally, the number of residential large lots that may want to connect to the Fort Collins Utilities water service because of an existing water well would be minimal, maybe only 1 or 2 customers every few years. The current requirement has been cost prohibitive for these customers to connect to City services; therefore, the proposed change could increase development fee revenue for the Water Fund as a whole. The amount would be highly dependent on the size of the lot. CC: Nicole Poncelet-Johnson, Utilities One Water Executive Director Docusign Envelope ID: 364F01F2-5277-4FF6-8D6A-8B63CB203730 Utilities 222 Laporte Ave. PO Box 580, Fort Collins, CO 80522 970-416-4306 aconovitz@fcgov.com Page 1 of 11 MEMORANDUM Date: March 12, 2025 To: Water Commission Through: Jill Oropeza, Staff Liaison and Senior Director of Integrated Water Sciences and Planning From: Alice Conovitz, Water Conservation Analyst Mariel Miller, Water Conservation Manager Subject: 2025 Fort Collins Utilities Water Efficiency Plan Update BOTTOM LINE The purpose of this item is to provide an overview on progress made on the state-mandated Fort Collins Utilities (Utilities) Water Efficiency Plan (WEP). Staff last met with Water Commission on this topic on April 6 and May 18, 2023, at the outset of the update process. Since that time, staff conducted extensive engagement and analyses and used these to develop proposed new water conservation goals and strategies. Staff are seeking Water Commission’s input prior to sharing the draft WEP for public comment in spring 2025 and seeking City Council approval of the final WEP in summer 2025. This memo also provides a summary of engagement tactics and results, an equity evaluation, the conservation strategy prioritization process, as well as background on water use and Utilities’ broader efforts to manage water supply and demand. Specific questions to be discussed: 1. Does Water Commission have feedback or questions related to the proposed conservation goals? 2. What else does Water Commission need to know prior to staff seeking their recommendation to Council to approve the updated WEP? BACKGROUND Water is an essential resource for all of us. The City of Fort Collins and Utilities have a strong Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 2 of 11 commitment to ensure its efficient use as a key tool to minimize risk of future shortages1. Utilities is updating its 2015 WEP2. The updated plan will:  Meet Colorado Water Conservation Board (CWCB) requirements  Set new conservation goals to (1) reduce the amount of treated water we use within the Utilities water service area and to (2) build resilience of City-owned public landscapes  Guide water use for Utilities customers and the City organization  Inform planning decisions and better resource allocation The WEP applies mainly to treated water use in Utilities’ water service area, which encompasses about 60% of the city geographic area and about 80% of the population. By updating our water conservation3 goals and strategies, we aim to continue long-term reductions in water demand through a variety of levers available to manage water use: behavioral, regulatory, infrastructure, and economic. Successful demand management and increased landscape resiliency provides reduced risk and gives customers the opportunity to benefit from less water use that leads to lower water bills. Developing more equitable opportunities for program participation and support provides greater community outcomes while improving overall resilience. The 2025 WEP update will outline a new roadmap for increased water demand management that considers equitable outcomes, integrates land use planning, and is based on quantitative analysis of potential water savings from individual strategies. The WEP sets a 15-year planning horizon with a 2040 goal. However, the CWCB requires WEP updates every seven years, which is an opportunity to evaluate conservation goals and strategies, demand and climate conditions, and community values. Alignment and Connection to Overall Water Supply Planning The WEP aligns with the City of Fort Collins’ Strategic Objective ENV 2, “Sustain the health of the Cache la Poudre River and regional watersheds while delivering a resilient, economically responsible and high-quality water supply for all Fort Collins residents.” It also aligns with the water utility’s mission statement, “We are a One Water Utility, providing exceptional water 1 The Water Supply Vulnerability Study (WSVS) identified high water demands as a significant vulnerability, noting that it is important to implement conservation and efficiency efforts and track demand trends. The WSVS is available online at fcgov.com/utilities/img/site_specific/uploads/wsvs-final-report.pdf. 2 Available online at fcgov.com/WEP. 3 Utilities’ Water Conservation department focuses on water demand management through a variety of behavior-based conservation practices and technology-based efficiency measures that extend water supplies either directly through water savings or through substituting alternative supplies such as reuse. For simplicity and consistency with our department name, the term “conservation” is used throughout this memorandum to refer to both behavioral and technology-based demand management. Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 3 of 11 services for our community through integrated, resilient, and equitable practices and systems.” Other City and state policies and plans that align include City Council Priority 7, the Water Supply and Demand Management Policy, Our Climate Future (Big Move #3), and the Colorado Water Plan. Utilities uses a multi-faceted approach to balance supply and demand to ensure a reliable water supply now and in the future, including storage, a diverse portfolio of water rights, and conservation. The conservation goals and strategies outlined in the WEP are critical tools used to manage variable water demands from diverse water users. Historically, during average and wet precipitation years, Utilities’ water rights provide more water than customers use. During extended hot and dry periods, current supplies may not meet demands while also maintaining a stored reserve of water for emergencies. Furthermore, we anticipate a future where climate impacts and population growth increase demands and put pressure on Utilities to restrict water use. Collaboration with Other Water Providers Certain areas within city limits are served by neighboring water providers. Other water providers have their own WEPs that describe goals and strategies for their service areas; however, Utilities values these partnerships and continues to look for ways to collaborate. To-date staff have met with East Larimer County and Fort Collins-Loveland Water Districts to discuss the WEP. Staff will incorporate information about regional partnership opportunities in the WEP and plan to pursue partnership opportunities in the future. Water Use and Demand Management Overview Utilities currently provides water to approximately 32,900 residential and 2,900 commercial customer accounts. The 2024 estimated residential population served was 139,300. On average, residential customers use about 60% of the treated water delivered each year and commercial customers use about 40%. Commercial customers include large irrigation-only accounts and landscapes maintained by homeowner associations. Each year, indoor water use accounts for about 57% of total treated water used, while outdoor and seasonal uses are about 43% of the annual total on average. The 2023 Water Conservation Annual Report (Attachment 1) summarizes treated water demands by sector and savings from conservation programs. Since 2000, population has grown by 28% while water use within Utilities’ water service area has decreased by 42% per capita. However, that rate slowed in recent years. From 2020 to 2023, average per-person water use was 135 gallons per capita per day (GPCD), 4% above the current 2015 WEP goal of 130 GPCD by 2030. Utilities met this goal once, during the high- precipitation year of 2023, with 122 GPCD. Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 4 of 11 Utilities water conservation programs lowered overall annual water demand by 155 million gallons (475 acre-feet) on average from 2020 to 2024 (Figure 1). This is about 2.3% of Utilities’ average treated water demand for the same five-year period (6.63 billion gallons or 20,350 acre- feet4). A portion of estimated annual savings will persist, such as savings from efficient toilet and landscape installations. Many other conservation strategies, such as educational campaigns and external influences, like weather, also generate water savings but are challenging to quantify and not included in annual water savings totals. Figure 1. Annual water demand and tracked conservation program savings for Utilities customers (ex cludes wholesale and unique large contractual deliveries). Demand is expected to increase due to rising temperatures and residential and commercial growth. Figure 2 presents historical residential and commercial customer demand, including non-revenue losses from treatment and distribution, with a range of projected future demands based on modeled growth and climate scenarios. Although a specific future demand cannot be predicted with certainty, implementing active water conservation strategies can lower the projected future demands. 4 Demands presented in this memorandum include distribution system losses and exclude wholesale and unique large contractual deliveries, which are not a primary focus of conservation activities. 1.9%*2.3%2.5% 2.1% 2.5% 0 6,000 12,000 18,000 24,000 0 2,000 4,000 6,000 8,000 2020 2021 2022 2023 2024 Ac r e -Fe e t Mi l l i o n G a l l o n s Treated Water Demand Measured Conservation Savings * This chart shows the 2020 efficiency program savings of 130. In that year, an additional 105 MG reduction resulted from 30 days of mandatory restrictions due to an infrastructure project & wildfire. Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 5 of 11 Figure 2. Historical and projected water use for Utilities customers (excludes wholesale and unique large contractual deliveries) WEP Update Process The CWCB requires water providers to prepare WEPs to outline how they plan to enhance water conservation and efficiency to combat increasing competition and demand for water. Utilities received grant funding ($160,000) from the CWCB and a one-time budget enhancement offer ($145,000) to fund consultant support with engagement and analysis. The Water Conservation department began work in January 2023 and targets completion by summer 2025. The updated 2025 WEP will replace the 2015 WEP. The 2025 WEP will modernize previous versions by setting new service area and City conservation goals and strategies based on recent community and staff engagement, an equity evaluation, and updated analysis of water use and potential conservation savings. The updated WEP will also identify opportunities to use less water at City facilities and improve landscape resilience on the City’s public parks, streetscapes, and open spaces. Engagement Community and staff input are vital to shaping the updated WEP and associated conservation goals and strategies. Our engagement strategy drew on the One Water integrated and 12,000 16,000 20,000 24,000 28,000 32,000 4,000 6,000 8,000 10,000 20 0 0 20 0 5 20 1 0 20 1 5 20 2 0 20 2 5 20 3 0 20 3 5 20 4 0 Ac r e -Fe e t Mi l l i o n G a l l o n s Fort Collins Utilities Customer Water Use (Actual & Projected) 20-yr average Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 6 of 11 collaborative planning approach, with tactics to both broadly engage the whole community while focusing resources on connecting with disproportionally impacted communities5. It all culminated to develop inclusive and community-driven water conservation goals and strategies. From 2023 through June 2024, engagement captured over 5,000 touchpoints via: a survey (1,319 responses), Our City web page, advertisements, in-person meetings hosted by compensated community consultants, focus groups and meetings with targeted water users including City departments, HOAs, and small businesses, meetings with community members who identify with one or more disproportionately impacted groups, consultant-led one-on-one interviews, and input from the City’s Climate Equity Committee6. Staff sought to reduce barriers to participation in engagement through collaborating with community consultants, providing Spanish translations, hard copies of the survey, tabling in public spaces, hosting meetings outside typical working hours, and providing food, childcare, and conservation giveaways at meetings. Staff organized engagement results into themes to guide conservation goal and strategy development.  Community values that inform conservation goals:  Concerns about water scarcity and providing for future generations  Willingness to take action, but want everyone to share in that responsibility  Support for landscape changes away from turf grass The community generally supported strategies that showed impact by lowering demand at multiple water use levels: individuals, highest users, and City properties. The characteristics of these conservation strategies are as follows:  Support upgrades to water-efficient fixtures for both indoor (e.g., plumbing) and outdoor (e.g., irrigation) uses by making them free or inexpensive  Reduce existing turf and encourage water-efficient landscapes  Support customers with leak issues and by installing efficient equipment  Use regulations to manage some water uses, including new growth, non-functional outdoor spaces, commercial users, and the highest water users 5 The WEP update identified disproportionately impacted community groups based on the 14 historically underrepresented groups identified in Our Climate Future, as well as additional groups, like renters, who face many barriers to both participating in and benefitting from water conservation programs and strategies. 6 The Climate Equity Committee (CEC) was formed to support the equitable implementation of Our Climate Future. Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 7 of 11  Support inexpensive actions that save money  Provide more education for everyone, specifically: o Target HOAs, landscapers, homeowners, and disproportionately impacted communities with resources specific to them o Remove barriers by coming to people in places and ways where they are already gathering and comfortable Successful implementation of water conservation strategies will benefit from ongoing alignment with the engagement themes and from maintaining the community and staff relationships that were fostered during WEP engagement. This will facilitate water use understanding and conservation opportunities between Utilities and our community, especially City departments and disproportionately impacted community members. Equity Evaluation Equity is integrated into the WEP update process, through (1) the engagement activities described above, (2) selection of conservation strategies, and (3) implementation of conservation strategies. Consultants developed a custom equity evaluation process focused on water use and conservation and refined it based on input from one-on-one community interviews, WEP engagement, the Climate Equity Committee, and the City’s Equity Office. The two-step equity evaluation process involves first examining each current and potential conservation strategy for “red flags” such as barriers to participation or negative unintended consequences. Strategies that are likely to support positive equitable outcomes were elevated with higher scores in the strategy prioritization process described below. In the second step of the equity evaluation process, staff will include equity in conservation strategy implementation planning by applying a series of questions designed to identify opportunities to increase equitable outcomes. Proposed Conservation Goals The updated WEP will continue Utilities’ historical trend of setting impactful goals that build on past successes by presenting two goals to guide Utilities, City, and customer actions. The 2025 goals reflect community and City Council feedback, staff input, and a commitment to take action now to build resilience and minimize future water shortage risks. Goal 1: Reach 3% annual reduction in water use by 2040 to reduce risk of shortages. The WEP will set an overall water conservation goal that applies to all treated water use within Utilities’ water service area, including both customer and City water use. The objective of this overall goal is to gradually and consistently lower demand to minimize the frequency and/or magnitude of shortages in a hotter, more populated future; we anticipate this amount of savings Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 8 of 11 would offset increasing demands driven by an average annual temperature increase of over 1°F between now and 2040. Goal 1 incorporates three specific targets: 1. Target 1.1: 235 million gallons (MG) per year lower customer treated water use by 2040 2. Target 1.2: 5 MG reduction in City treated water use by 2040 3. Target 1.3: 50% increase in measured Water Conservation program savings by 2040 The targets will be attained through strategies to lower customer and City treated water demand. From 2026-2040, interim annual targets will be tracked, increasing to the 2040 goal of 3% reduction:  2025: 2.6% reduction: 180 MG/yr (552 AF/yr)  2030: 2.7% reduction: 190 MG/yr (583 AF/yr)  2035: 2.8% reduction: 205 MG/yr (629 AF/yr) Goal 2: Improve water efficiency and build resilience on City-owned landscapes, to benefit the community and environment. For the first time, the WEP will set a goal directed at the City’s water use, which includes both treated and raw water and properties outside of Utilities’ water service area. The goal for water conservation on City-owned landscapes is intended to contribute to the overall WEP water conservation goal by lowering municipal water use, building resiliency in our public landscapes to prepare for a hotter future, prioritizing water use for places that most benefit the community, and creating highly visible projects that inspire water-saving actions by individuals and businesses. Goal 2 incorporates one specific target: 1. Target 2.1: The City will implement at least 1 new water-saving project in each 2-year municipal budget cycle, for at least 7 new projects on City landscapes by 2040. The number of projects, associated water savings, and total project area will be measured each year. Projects that lower water use and/or build landscape resilience on City-owned properties within the Fort Collins growth management area will count toward this target. The intention of these goals is to prepare for a hotter and more variable climate by minimizing the potential frequency and magnitude of future water shortages and by building long-term landscape resilience. Additionally, by shifting away from a GPCD metric7, Utilities aims to 7 This updated overall goal sets a new target and uses a different metric than the GPCD-based goals set previously. Customer feedback noted that a GPCD metric isn’t meaningful. For example, it was unclear how an individual’s water use (as seen on their bill) related to a GPCD goal. For most residential customers, on average, their individual GPCD or even gallons per household per day are much lower than the system-wide GPCD; however, during the summer Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 9 of 11 encourage public participation in conservation by helping all water users see themselves in the goals and strategy offerings. The previous GPCD metric was a system-wide value that included both residential and commercial use, making it hard for customers to understand how it relates to their individual use. Furthermore, the methods to calculate GPCD vary, which adds further confusion and limits the ability to compare across water providers. Areas of Opportunity and Conservation Strategy Selection Process Utilities already has a robust water conservation program with activities that touch on many different uses and affect the entire service area. The Water Conservation team aims to continue to build on effective existing programs, incentives, and policies, as well as develop new strategies for conservation. Staff evaluated current and potential new conservation strategies using a number of criteria, including water savings, cost, ease of implementation, community acceptance, customer reach, and co-benefits such as equitable and environmental outcomes. A set of strategies associated with lowering the City’s water use (supporting proposed Goal 1) and advancing conservation and resilience on City-owned landscapes (supporting proposed Goal 2) was developed through collaborative meetings and engagement with cross- departmental staff and identifying conservation and resilience actions that align with their existing plans, policies, practices, and available funding. The following areas of opportunity are the focus of conservation strategies prioritized in the 2025 WEP update:  Behavioral (e.g., education, technical assistance, voluntary actions)  Regulatory (e.g., water restrictions, policies, land use and plumbing code changes)  Economic (e.g., incentives, utility rate structure, development fees)  Infrastructure (e.g., metering, leak detection, maintenance, graywater) Strategies are intended to be implemented, tracked, and refined over time. This cultivates and supports a water efficient, adaptive, and knowledgeable customer base through education and cost-effective water efficiency programs while minimizing water shortage risk and supporting the City’s Strategic Plan. Strategies can impact the entire community and we have selected a set of strategies that we expect to meet our goals; provide opportunities for all customers, including disproportionately impacted groups and those who have had low historical participation rates; provide customized strategies to meet high-use and unique customer sector needs; continue doing what works well and is liked by customers; and lead by example as a municipality. Water Use and Savings Analysis The WEP update involves estimating potential water savings associated with conservation strategies and evaluation of their impact on overall demand. Utilities’ future water demands are irrigation months, it may be significantly higher. For customers in multi-family or multi-business units that are not sub- metered, there is no way to connect to the single system-wide goal. Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 10 of 11 largely dependent on population change and growth patterns, the rate of commercial and industrial development, and climate influences. System losses from treatment and distribution also influence overall demand. A range of projected future demands based on possible growth and climate scenarios is shown above in Figure 2. Utilities worked with consultants to develop a customized model, called the Water Efficiency Tool (WET), to evaluate the complex interactions between climate impacts, growth and estimated water savings. This tool helps us estimate the effectiveness of various strategies to achieve goals.8 Water savings potential was estimated for conservation strategies using WET results, paired with historical program participation data and estimates from industry resources like the Colorado WaterWise Best Practices Guidebook9. Staff conducted a preliminary analysis of savings estimates and believes Goal 1 is achievable. Additional modeling analysis will further refine estimations and strategy selection. This step is underway. In addition to measurable savings from conservation strategies, Utilities might experience further demand reduction driven by educational programs, passive savings related to widespread technological efficiency improvements, or water rate changes. Implementation and Cost As part of the WEP process, we have developed strategies that not only align with feedback from engagement, but also target high water savings impact with low cost to Utilities and customers to most effectively and efficiently reach the 2040 goals. The portfolio of strategies proposed in the WEP was holistically evaluated and includes continuation of some current actions as well as new strategies. Staff anticipate gradually implementing the strategies, following all necessary steps to seek approval and funding, beginning in 2026 and continuing through the seven-year WEP renewal cycle. Based on our strategy analysis, we anticipate achieving WEP goals with limited need for new funding sources or future budget enhancements. For Goal 1 (overall water savings) staff identified opportunities to reallocate our budget (shifting our funding to different strategies), potential low-cost opportunities with strategic partnerships, and third-party support. For Goal 2 (City landscape resilience), many of the strategies align with planned or ongoing work. In 8 The WET was developed specifically to evaluate how water conservation strategies impact customer demands in a variety of scenarios through 2040. The intended outcome (conservation planning) and hybrid econometric/end-use specific projection mechanisms in WET are distinct from past GPCD-based projections (such as used long-term supply planning and for the Halligan Water Supply Project) or the demand estimation tool model, which supported risk analyses in the 2019 Water Supply Vulnerability Study. Instead, the WET focuses solely on the subset of total water use associated with billed residential and commercial customer demands. The WET was not used to predict future large contractual or wholesale demands, does not incorporate storage reserve targets, and does not consider water supplies. 9 Available online at: https://indd.adobe.com/view/a66fdb02-50c6-4ec3-8fea-4db473212faf. Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E Page 11 of 11 addition, there are also new funding opportunities for landscape projects including the City’s 2050 tax, Water Conservation’s ongoing budget, and external grants. It is important to also consider the potential future costs resulting from inaction now. Climate impacts are estimated to increase costs in several ways. Insufficient water demand management now could impact Utilities and City properties through cost and staffing impacts such as needing more water storage, water rights purchases and landscape impacts related to water restrictions from more frequent and severe water shortages. For customers, this could mean increased fees and rates and loss of landscaping, as well as water restrictions that can cause economic impacts. NEXT STEPS Anticipated next steps:  Complete remaining work to finalize decisions and prepare plan  Q2 2025: 60-day public comment period and CWCB’s review, seek Board and Commissions’ recommendations  Q3 2025: Seek City Council approval via resolution, then submit to CWCB  2026-2032: Implement prioritized water conservation strategies  2032: Next state required WEP update submittal to CWCB ATTACHMENTS 1. 2023 Water Conservation Annual Report 2. Presentation cc: Nicole Poncelet-Johnson, One Water Executive Director Docusign Envelope ID: 03BB4A8D-110B-4213-A385-9007A9582C0E TOTAL3.8 million gallons RESIDENTIAL RESIDENTIAL TOTAL 40 TOTAL2.6 million gallons Shift Your Water: 2.7 MG Landscape Conversions: 1.1 MG Outdoor Water Use Home Water Reports: 24 MG Eciency Rebates: 2.2 MG Continuous Consumption (Leak) Notifications: 7.2 MG Combined Water Use Ecient Product Installations (Larimer County): 2.6 MG Indoor Water Use TOTAL33.4 million gallons COMMERCIAL COMMERCIAL TOTAL 90 Outdoor Water Use TOTAL7.4 million gallons Indoor Water Use Eciency Rebates: 0.5 MG Ecient Product Installations: 0.1 MG TOTAL0.6 million gallons Combined Water Use Continuous Consumption (Leak) Notifications: 81.8 MG TOTAL81.8 million gallons Allotment Management Program: 1.6 MG Landscape Conversions: 1.8 MG Midstream Irrigation Rebates: 4 MG TOTAL ANNUALSAVINGS:130 million gallons WATER CONSERVATION ANNUAL REPORT Fort Collins Utilities has a strong commitment to ensuring the efficient and responsible use of our natural resources. Our Water Conservation Program started in 1977 and we continue to innovate how we help the community use water wisely. Gallons per capita per day (GPCD) is the total treated water used by commercial and residential customers, divided by the service area population (about 80% of Fort Collins), divided by 365 days. GPCD helps determine if conservation and efficiency efforts and practices are impacting community water use, irrespective of population growth. GPCD fluctuates greatly with weather – hotter and drier months during the irrigation season create higher water demands for our community. 2023 Utilities 140,000 135,000 130,000 125,000 120,000 115,000 110,000 250 150 100 50 0 Community Gallons per Capita per Day (GPCD) & Population 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 122TOTAL 137,400 20 0 0 211TOTAL 118,300 page 1 WATER CONSERVATION AND EFFICIENCY AT A GLANCE GPCD is down 42% since 2000. Based on total water treated. Total Community GPCD Population PROGRAMS AND SERVICESWATER SAVINGS Actions in 2023 resulted in approximately 130 million gallons (MG) saved or 2% of 2023 total treated water. LEARN MORE Residential Programs and Rebates: fcgov.com/save-water Commercial Programs and Rebates: fcgov.com/water-efficiency 1,684homes’ average annual water use was saved in 2023 based on volume of single- family home water use (3-year average) page 2 2023WATER CONSERVATION ANNUAL REPORT Another way to evaluate our impact on water use within our service area is estimated water savings. Estimated water savings only include results from programs and services that have measurable water savings, a large portion of which persist for years to come. Many of the services we provide can’t be easily measured. Compared to 3-year historical average (2020-2022), residential water use was down 20% and commercial water use was down 8%. This is largely due to a 123% increase in precipitation during the irrigation season in 2023 compared to prior years’ average. Overall, Utilities treated 6.1 billion gallons of water (including unmetered use and other water losses), which 33 27 50 65 86 133 185 131 160 173 130 0 20 40 60 80 100 120 140 160 180 200 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 50 150 250 350 450 550 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Residential Commercial 3 Ye a r A v g . 3 Y e a r A v g . Estimated Water Savings (MG) Total Monthly Water Use (MG) equals 122 gallons per person per day (GPCD). This is a 42% reduction in GPCD since 2000 and meets our goal of reaching 130 GPCD by 2030. However, 2023’s record rainfall and wet, cool irrigation season played a large role and reduced total treated water use by about 13%. If we receive less rain in summer of 2024, it is likely that GPCD will increase. Total accounts: 32,204 •28,872 single family & duplex accounts •2,332 multi-family building accounts Total water use: 2,910,000,000 gallons Average use per customer class: •SF/Duplex: 64,384 gal/yr •MF: 423,305 gal/yr (includes multiple units) Total accounts: 2,818 •Includes commercial, irrigation, and HOA customers Total water use: 2,193,000,000 gallons Average use per customer account: 778,380 gal/yr RESIDENTIAL COMMERICAL Water use is constantly fluctuating – both our individual uses and our community use. There are many factors that impact how much water we use, but year-to-year fluctuations are mostly attributed to weather. Long-term water reduction trends generally result from efficient actions by water users. When we have cooler and wetter weather, our water use decreases, as seen in 2023. 2023’s record precipitation during irrigation season is not likely to start a trend. Our region is expected to continue warming and may receive less precipitation over time due to climate change. Hotter and drier weather makes water efficiency an even more critical strategy to managing a reliable water supply. •The Colorado Climate Center’s 2024 Climate Change in Colorado reports a 2.3 degree F increase statewide since 1980 and estimates another 1-4 degree F increase by 2050. Summer and fall are projected to warm slightly more than winter and spring, extending the irrigation season into the fall. The future of Colorado’s precipitation is much less clear. Additional warming will drive greater evaporative demand, which influences the amount of water needed by plants to stay healthy. Therefore, warmer temperatures will likely contribute to more frequent and severe droughts, regardless of changes in precipitation. •The 2019 Water Supply Vulnerability Study estimates climate impacts will decrease water supplies and increase water demands, squeezing water resources from both ends. This will likely increase the need for outdoor watering restrictions. Community Gallons per Capita per Day (GPCD) & Precipitation (in) WATER USE AND CLIMATE IMPACTS WATER CONSERVATION ANNUAL REPORT OTHER FACTORS THAT INFLUENCE WATER USE INCLUDE: page 3 •Conservation: Actions such as taking shorter showers, monitoring your outdoor water use, turning off the faucet while brushing your teeth and other behaviors add up and can make a collective difference. •Efficient Fixtures/Appliance/Landscapes: Homes and businesses that have water efficient appliances, fixtures, irrigation, and technologies use less water every time someone flushes, washes, showers, or waters their landscape. •Leaks: The average household in the US wastes 10,000 gallons of water due to leaks every year, which is about 12% of total average annual household water use. 10% of homes have leaks that waste 90 gallons or more per day. •Population: More people means more water use. Total residential and commercial water use all increase with a growing population. •Land Development Patterns and Urban Design: Less dense developments with more landscaped areas require more outdoor water use to maintain. Landscape types that are not regionally adapted or native to our area, such as turf grasses and others, require more water than nature provides. 2023WATER CONSERVATION ANNUAL REPORT OUTDOOR WATER USE (COMMERCIAL + RESIDENTIAL) IS 35% OR 1.78 BG. BG = Billion Gallons SINGLE FAMILY & DUPLEX OUTDOOR 0.74 BG MULTI FAMILY INDOOR 0.84 BG MULTI FAMILY OUTDOOR 0.15 BG SINGLE FAMILY & DUPLEX INDOOR 1.19 BG COMMERCIAL OUTDOOR 0.9 BG COMMERCIAL INDOOR 1.29 BG RESIDENTIAL INDOOR 2.03 BG RESIDENTIAL OUTDOOR 0.89 BG 211 199 183 154 146 155 171 161 153 135 146 141 166 142 139 141 157 141 143 131 138 139 139 122 0 5 10 15 20 25 30 25 75 125 175 225 20 0 0 20 0 1 20 0 2 20 0 3 20 0 4 20 0 5 20 0 6 20 0 7 20 0 8 20 0 9 20 1 0 20 1 1 20 1 2 20 1 3 20 1 4 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 20 2 0 20 2 1 20 2 2 20 2 3 Community GPCD Precipitation LEARN MORE Residential Programs and Rebates: fcgov.com/save-water Commercial Programs and Rebates: fcgov.com/water-efficiency WATER CONSERVATION ANNUAL REPORT2023 WATER CONSERVATION HIGHLIGHTS 23-25044 2023WATER CONSERVATION ANNUAL REPORT page 4 •Assisted Mobile Home Park Residents: Supported Neighborhood Services’ Mobile Home Park DIY series to educate residents on water and energy efficiency. Water Conservation attended four sessions to support about 90 residents with indoor and outdoor water conservation via free, efficient fixtures and promoting our programs and resources. •Provided free Certified Landscape and Irrigation Audit training: Hosted a two-day Irrigation Association class, taught by Water Conservation staff, where 23 participants learned to analyze landscape water use and increase irrigation efficiency. •Sprinkler Checkup Program: Conducted 412 checkups across Utilities, Fort Collins-Loveland, and East Larimer County water districts. Four trained technicians assessed over 2 million square feet of irrigated landscapes, inspected over 11,000 sprinkler heads, and piloted our first Spanish- language checkups and informational materials. In 2024, Utilities will provide checkups through a partnership with Resource Central, ensuring the program’s continuity and allowing time for staff to explore future improvements. fcgov.com/sprinklers •Distributed Water-Wise Pre-Designed Plant Pallets: Partnered with Nature in the City and Resource Central to distribute $25 discounts on mostly native Garden in a Box kits to 170 residential water customers and $100 discounts on Garden in a Box kits to 25 Income-Qualified Assistance Program customers and mobile home park residents. fcgov.com/GIAB. •Supported Affordable Housing: Partnered with an affordable housing provider to install 144 high-efficiency toilets. Provided a rebate to support the project which otherwise would not have been financially feasible. This upgrade is estimated to save about 250,000 gallons annually. fcgov.com/water-efficiency. 2024 FOCUS AREAS •Water Efficiency Plan: Updating the 2015 Water Efficiency Plan, which guides how Utilities customers use water and recommends strategies to help use less. The updated WEP will set new water conservation goals, incorporate extensive public engagement, integrate land use planning, and employ numeric modeling and an equity analysis to help prioritize future water conservation programs, policies, and incentives. Learn more about the WEP update and provide feedback at fcgov.com/2024WEP. •Colorado River Impacts and Water Shortage: Utilities staff monitors the Colorado River’s status and ongoing discussions about water shortages impacting the seven states under the Colorado River Compact. Utilities sources about 60% of water distributed to customers from the Colorado River-Big Thompson project, which is stored in Horsetooth Reservoir and managed by Northern Water. If there are reductions in water use required in Colorado, Northern Water would determine if, when and how much our Utilities supplies would be reduced. If needed, we will respond to shortages using the Water Shortage Action Plan. As of now, there is no indication from Northern Water of the need for drought management action. fcgov.com/WSAP •Landscape and Irrigation Training and Education: Hosting free monthly garden tours by foot and bike, partnering with Natural Areas for a sustainable landscape series, and offering a class on efficient home irrigation. Emphasizing native plant landscaping education remains a priority due to its drought resilience and support for biodiversity and pollinators citywide. Utilities collaborates with numerous community organizations (One Canopy, Front Range Wild Ones, the CO Native Plant Society, People and Pollinators Action Network, the League of Women Voters, Nature in the City, USDA NRCS, Wildland Restoration Volunteers and Larimer Conservation District) for seed and plant swaps, while offering discounted education for landscape professionals. Additionally, we’re teaming up with Northern Water to provide irrigation trainings and a native grass workshop. fcgov.com/xip-events •Xeriscape Codes: Proposing new landscape standards in Land Use Code for City Council’s consideration and adoption. New standards would apply to new development and significant redevelopment of commercial and multi- family properties. The following standards are proposed: •Limitations on the installation of high water use turf, with some exceptions. •Restriction of artificial turf. •50% living plant coverage on the surface of landscaped areas. •Dedicated irrigation to trees to support tree health in times of water restrictions. fcgov.com/xsa Headline Copy Goes Here Water Conservation Specialist Alice Conovitz Fort Collins Utilities Water Efficiency Plan (WEP) Update Water Commission Meeting March 20, 2025 Headline Copy Goes HereDiscussion Questions 2 1) Does Water Commission have feedback or questions related to the proposed conservation goals? 2) What else does Water Commission need to know prior to staff seeking their recommendation to Council to approve the updated WEP? Headline Copy Goes HereWEP Purpose and Extent 3 Utilities Water Profile •6,032,000,000 gallons (18,500 acre-feet) annual treated water use •60% indoor, 40% outdoor •60% residential, 40% commercial Why a WEP? •Guide water use and conservation •Set goals •2015 goal: 130 GPCD by 2030 •Prioritize strategies: programs, incentives, policies •Minimize risk of water shortage •Meet state requirements Fort Collins Utilities ~ 139,000 residents Headline Copy Goes HerePreparing for Our Uncertain Water Future 4 •Growth and climate drive potential for more water shortages •Conservation: •Lowers annual demand by about 2% (155 MG or 475 AF) •Builds resilience, prepares community to act •Minimizes increases to utility and customer costs •Storage, water rights portfolio, and land use planning also critical Ac r e -Fe e t Mi l l i o n G a l l o n s Fort Collins Utilities Customer Water Use (Actual & Projected) 20-yr average Headline Copy Goes Here 5 WEP Update Inputs WEP conservation goals and strategies Broad community City staff Equity-priority community members Future water risksWater savings Resources, timelines, feasibility Equitable outcomes State requirements City leadership, boards, commissions Experience, best practices Headline Copy Goes Here 6 WEP Update Inputs WEP conservation goals and strategies Broad community City staff Disproportionately impacted community members Future water risksWater savings Resources, timelines, feasibility Equitable outcomes State requirements City leadership, boards, commissions Experience, best practices Headline Copy Goes Here 7 WEP Update Inputs WEP conservation goals and strategies Broad community City staff Disproportionately impacted community members Future water risksWater savings Resources, timelines, feasibility Equitable outcomes State requirements City leadership, boards, commissions Experience, best practices Headline Copy Goes HereConservation Goals to Lower Risk and Build Resilience 8 Concerns about water scarcity and providing for future generations Willingness to take action Goal 1: Reach 3% annual reduction in water use by 2040 to reduce risk of shortages 235 MG/yr reduction in customer treated water use 5 MG reduction in City treated water use 50% increase in water conservation program savings Headline Copy Goes HereConservation Goals to Lower Risk and Build Resilience 9 Concerns about water scarcity and providing for future generations Willingness to take action Want everyone to take responsibility Desire for landscape change away from turf grass Headline Copy Goes HereConservation Goals to Lower Risk and Build Resilience 10 Concerns about water scarcity and providing for future generations Willingness to take action Want everyone to take responsibility Desire for landscape change away from turf grass Goal 2: Improve water efficiency and build resilience on City-owned landscapes, to benefit the community and environment Complete 7 City landscape projects by 2040 Headline Copy Goes HereWater Conservation Areas of Impact 11 Strategies impact our whole community •Provide opportunities for all •Customize to meet customer sector needs •Lead by example •Continue doing what works well Communications & marketing drive success Strategies are areas of opportunity •Follow normal processes for approval post-WEP •Track, report, and adjust over time to attain goals Incentives Utility Rates Development Fees Education Technical Assistance Voluntary Actions Water Restrictions Land Use Code Plumbing Code Policies Metering Leak Detection Maintenance Graywater Headline Copy Goes HereStrategy Prioritization for WEP 12 •Prioritized based on water savings, cost, feasibility, equitable outcomes, acceptance •Engagement input: •Balance incentives and regulations •Minimize barriers •City already does a lot, community doesn’t know Count of Strategies by Approach Estimated Water Savings by Approach Headline Copy Goes Here Headline Copy Goes Here Objectives •Gradually lower demand to minimize shortage risk •Offset demand increases due to rising temperature •Reduce barriers, expand access to opportunities •Do our part and lower municipal water use 2040 Targets •235 MG/yr reduction in customer treated water use •5 MG reduction in City treated water •50% increase in water conservation program savings Goal 1: Reach 3% Annual Reduction in Water Use by 2040 14 Goal 1: Reach 3% Annual Reduction in Water Use by 2040 Headline Copy Goes HereGoal 1 15 9,200 13,200 17,200 21,200 25,200 3,000 5,000 7,000 9,000 Ac r e -Fe e t Mi l l i o n G a l l o n s Historic customer demand Range of projected demands under climate & growth scenarios Headline Copy Goes HereGoal 1 16 9,200 13,200 17,200 21,200 25,200 3,000 5,000 7,000 9,000 Ac r e -Fe e t Mi l l i o n G a l l o n s Range of projected demands with successful attainment of Goal 1 Historic customer demand Headline Copy Goes HereGoal 1 17 9,200 13,200 17,200 21,200 25,200 3,000 5,000 7,000 9,000 Ac r e -Fe e t Mi l l i o n G a l l o n s Range of projected demands with successful attainment of Goal 1 Historic customer demand 2040: 3% reduction (210 – 260 MG/yr) Headline Copy Goes HereGoal 1 – Interim Targets 18 9,200 13,200 17,200 21,200 25,200 3,000 5,000 7,000 9,000 Ac r e -Fe e t Mi l l i o n G a l l o n s Range of projected demands with successful attainment of Goal 1 3% 2.8% 2.7% 2.6% Historic customer demand Interim targets ramp up to 2040 goal: 2025: 2.6% (170 – 190 MG/yr) 2030: 2.7% (175 – 200 MG/yr) 2035: 2.8% (185 – 225 MG/yr) 2040: 3% reduction (210 – 260 MG/yr) Headline Copy Goes HereGoal 1 – Interim Targets 19 9,200 13,200 17,200 21,200 25,200 3,000 5,000 7,000 9,000 Ac r e -Fe e t Mi l l i o n G a l l o n s Range of projected demands with successful attainment of Goal 1 3% 2.8% 2.7% 2.6% Historic customer demand Interim targets ramp up to 2040 goal: 2025: 2.6% (170 – 190 MG/yr) 2030: 2.7% (175 – 200 MG/yr) 2035: 2.8% (185 – 225 MG/yr) 2040: 3% reduction (210 – 260 MG/yr) City contribution to 3% reduction: 5 MG Headline Copy Goes HereStrategies Supporting Goal 1 20 Reach 3% annual reduction in water use by 2040 to reduce risk of shortages Customer Areas of Opportunity •HOA & large turf transformation •Rental incentives, education •Plumbing repair assistance •Grants •Land use policies & developer incentives •Daytime watering limits •Commercial water use benchmarking City Areas of Opportunity •Retrofit City facilities with high-efficiency plumbing •City facilities for pilots/examples •Improve water loss tracking & increase line repair •Landscape changes that lower treated water use Distribution System Loss City Account Demand Customer Demand, Indoor Customer Demand, Outdoor Headline Copy Goes HereGoal 2: Improve water efficiency and build resilience on City-owned landscapes 22 Objectives •Benefit the community and environment through investment in public spaces •Update aging landscapes to modern efficiency •Prioritize water use on multi-benefit landscapes like trees and sports fields Target •Complete 7 City landscape projects by 2040 •All City landscapes, including raw water and other service areas Headline Copy Goes HereStrategies Supporting Goal 2 23 Improve water efficiency and build resilience on City-owned landscapes, to benefit the community and environment Areas of Opportunity •Irrigation upgrades and/or turf reduction •Landings Park •Nature in the City projects •Water Treatment Facility •City Hall •Increase dedicated tree irrigation •Align planning & communications across departments Existing Best Practices •Water use tracking •Irrigation to ET need, audits, smart controllers •Smart new design with xeriscape principles Headline Copy Goes HereNext Steps Finalize goals & strategies Council Work Session Water Commission update WEP public comment draft February–March CWCB pre-review (30 days) Public comment (60 days) Staff feedback Boards & Commissions  6/5 Water Commission Finalize WEP April–June Seek Council approval July 24 Headline Copy Goes HereDiscussion Questions 25 1) Does Water Commission have feedback or questions related to the proposed conservation goals? 2) What else does Water Commission need to know prior to staff seeking their recommendation to Council to approve the updated WEP? Headline Copy Goes Here Thank you! 2626 Headline Copy Goes HereCost Impact Evaluation for 2025-2040 28 •Water Conservation’s ongoing budget (~$1.5M) •External grants •Policy that impacts behavior •BFO –two future enhancements Goal 1 Reach 3% annual reduction in water use by 2040 $1.5-1.75M/year •Actions already occurring •Grants (internal and external) •Ongoing budgets •2050 Tax Goal 2 Improve efficiency and resilience on City landscapes $50K/year •City – Water purchases, regional competition, landscape damage, implementing restrictions •Customer –Fees & rates, private landscape damage, responding to restrictions Cost of Inaction Headline Copy Goes HereEngagement and Equity Approaches 29 Engagement •Disproportionately impacted community members •Broad engagement •City staff following One Water collaborative approach Outcomes •5,000+ touchpoints •Meetings, focus groups, community events, survey, OurCity, ads •Critical input from Community Consultants •40+ hours connecting with staff Equity •Elevate needs and ideas •Increase equitable outcomes from conservation strategies •Build equity evaluation into annual reviews and plans Headline Copy Goes HereNeighboring Water Providers: FCLWD’s 2023 WEP 30 •2023 WEP goal: Lower water use by 9% (cumulative) over the 10-year planning period (with specific customer sector targets) •Expect demand to increase by almost 50% by 2033 (from 10,089 AF to 15,064 AF) due to growth/development •Heavily dependent on CBT & NISP •About 60% outdoor use •Conservation activities expected to save up to 1,229 AF/yr •12 activities identified in WEP •Most similar to what we already do •New ideas: hydrant flushing truck, SFR conservation taps without potable irrigation Fort Collins Utilities ELCO FCLWD Headline Copy Goes HereNeighboring Water Providers: ELCO’s 2024 WEP 31 •2024 WEP goal: Achieve water savings goal of 172 AF/yr in 2033 (relative to baseline projected demand) •Population expected to triple by 2045, which will be ~ 60% buildout •Heavily dependent on CBT •43% outdoor use •~20% of residential customers can access raw water for irrigation •Conservation activities targeting 172 AF/yr savings by 2033 •8 activities identified in WEP •Similar to what we already do Fort Collins Utilities ELCO FCLWD Headline Copy Goes Here 32 Water Provider Conservation Activities Conservation Strategy / Activity FCLWD ELCO FC Utilities 1. Work more closely with planning X X X 2. Garden In A Box X X 3. Residential sprinkler assessments X X X 4. Smart irrigation controller rebates/discounts X X 5. Restrictions X X X 6. Wasting water/leaks prohibition X X 7. Property Manager and HOA irrigation education/training X X 8. Hydrant Flushing Filter Truck X 9. Metering, Water Loss Control, Rates/Fees, Education, *Graywater, Information, Etc. X X X X: indicates new activity Headline Copy Goes HereWater Use Priorities – 2019 Feedback Priority Rank Water Use Type Votes 1 Indoor Home 99% 2 Health and Safety 94% 3 Indoor Business 77% 4 Other Landscaped Areas (Non-turf)53% 5 Commercial/Public Recreation 40% 6 Turf Grass (Higher Water Use)14% 7 Personal/Private Outdoor Recreation 9% Higher Priority Lower Priority Headline Copy Goes HereWEP 2024 Community Engagement Takeaways •Our collective impact should increase community resilience. Pursue conservation strategies that: •Impact our largest water users •Impact City operations; show how the City saves water •Everyone can participate in, even if only small water savings •Increase access and decrease burden •There is support for a mix of incentives and regulations •Most people are willing to act •Conserving water is everyone’s responsibility •Be thoughtful who you regulate, and who you incentivize •Make water conservation engaging, accessible, and meaningful •Give people tools to understand their impact •Engage with people where and how they are comfortable •Offer flexible programs, processes Headline Copy Goes HereWE 2025 Staff Engagement Takeaways •Staff do a lot to use water wisely •Many agreed on the importance of: •Water conservation for new builds •Xeriscaping •Indoor conservation opportunities •Raw water benefits •Challenges •Public perception may not match City efforts •Public landscapes need to be safe, durable, attractive •Funding is needed to update older, water-hungry designs •More info wanted: ⎻Public comments and appetite for xeric landscapes⎻Work/operations implications Headline Copy Goes HereWater Conservation Annual Savings 36 Ac r e -Fe e t Mi l l i o n G a l l o n s This chart shows the 2020 efficiency program savings of 130. In that year, an additional 105 MG reduction resulted from 30 days of mandatory restrictions due to an infrastructure project & wildfire. Headline Copy Goes HereConservation Goal Setting Current WEP goal: 130 GPCD by 2030 •42% decrease in GPCD since 2000 •Met the goal in 2023 with help from record precipitation Se r v i c e A r e a P o p u l a t i o n ( 1 , 0 0 0 ' s ) To t a l G P C D Headline Copy Goes HereFort Collins Utilities Water Demand by Customer Sector 38 Single-family Residential, Indoor 21% Single-family Residential, Outdoor 19% Multi-family Residential, Indoor 16% Multi-family Residential, Outdoor 4% Commercial, Indoor 22% Commercial, Outdoor 18% Annual Residential and Commercial Customer Demand (2022) Headline Copy Goes Here 39 Current State: 2015 Goals and Opportunities Areas of Opportunity 1.Leverage Advanced Meter Fort Collins data and capabilities 2.Promote and support greater outdoor water efficiency 3.Encourage greater integration of water efficiency into land use planning and building codes 4.Expand commercial and industrial sector strategies 5.Increase community water literacy Current WEP goal: 130 gallons per capita per day by 2030 fcgov.com/WEP WATER COMMISSION AGENDA ITEM SUMMARY Staff: Matt Fater, Civil Engineering Director Joe Wimmer, Utilities Finance Director Date: March 20, 2025 SUBJECT FOR DISCUSSION Supplemental Appropriation Request for the Oak St. Stormwater Project EXECUTIVE SUMMARY The Oak Street Stormwater Project (OSSP) is currently under construction and progressing as planned. Staff has identified the need for an additional $1,500,000 appropriation from the Stormwater Utility Reserve Fund to supplement the existing appropriated budget. The additional appropriation will fund remaining project support services as well as a minor contingency for unanticipated costs to complete the project. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED Staff is requesting the Water Commission consider a motion recommending City Council approve a $1,500,000 supplemental appropriation from Stormwater reserves to complete the Oak Street Project. BACKGROUND/DISCUSSION The Oak Street Stormwater Improvement Project is a priority stormwater project for the City because it will contribute to resolving the urban flooding and stormwater quality issues in downtown Fort Collins. 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 (LF) 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. Additional information on the project and associated public outreach can be found here: https://www.fcgov.com/utilities/oak-street-stormwater-improvements-project The project started construction in July of 2024 with an anticipated completion of June 2026. To date, approximately 35% of the work is completed which includes 772 LF of tunnelling and 1,555 LF of mainline storm sewer. The total appropriated budget, to date, for this project is $42,882,815. Previous city annual budgets appropriated $2,920,000 and there was an off-cycle appropriation in 2023 for $39,962,815. The off-cycle appropriation was for the municipal bond proceeds issued by the Stormwater Utility enterprise in the Fall of 2023. The total project budget includes: engineering, project and construction management, permitting, and construction services with construction contract accounting for the most significant portion. In addition to these elements of the project budget, typically a contingency of 5-10% would be included in the final budget. However, this level of contingency was not included in the 2023 appropriation due to the timing of the bidding and bonding processes. Instead, the project started construction with a contingency of less than 1%. The construction contract portion of the project has been progressing as planned with minimal unanticipated expenses. However, the project expenses related to professional services, project management, and other support services have exceeded original estimates. These are future expenses for the project as the project moves into the second year of construction. There are also some minor potential expenses associated with pending issues related to construction such as concrete and asphalt replacement and utility relocations that will likely be realized before the end of the project. In addition to these known and pending expenses, a minor contingency (1.6%) is requested to cover unanticipated expenses for the remaining portion of the project. Figure 1 summarizes the existing appropriations and anticipated expenses as well as the requested appropriation to complete the project. Figure 1 – Budget Summary Staff requests a $1,500,000 supplemental appropriation from Stormwater Fund reserves based on the budget analysis summarized in Figure 1. This level of contingency is relatively small for a project of this magnitude. A typical construction contingency would be 5-10%. However, staff believes this is sufficient to complete the project based on the progress to date and a risk assessment of the remaining work. FINANCIAL IMPACT The requested supplemental appropriation would be funded from Stormwater Fund reserves. This fund has a sufficient balance with approximately $10.7M of available unencumbered reserves to cover this appropriation. ATTACHMENTS 1. Presentation - Oak Street Stormwater Project $ 42,882,815 $ 41,548,387 $ 1,334,428 Future Expenses (Known) $ 2,132,077 $ (797,649) Pending Issues (Potential) $ 119,994 $ (917,642) $ 1,500,000 $ 582,358 Total Project Appropriation $ 44,382,815 Headline Copy Goes Here Oak Street Stormwater Project March 20, 2025 Matt Fater Director, Civil Engineering Joe Wimmer Director, Utilities Finance 2 Suggested Motion I move that Water Commission recommends City Council approve a supplemental appropriation of $1,500,000 from Stormwater reserves to complete the Oak Street Stormwater Project. Headline Copy Goes Here 3 Background CITY PARK OAK STREET STORMWATER IMPROVEMENTS PROJECT (PURPLE LINE) OAK ST OUTFALL CO L L E G E A V E MOUNTAIN AVE 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. Headline Copy Goes Here 4 Progress to Date Current Work ZoneThis Area Not Started Yet •Construction Contract Expenditures = $13 M (35%) •Tunnels Completed = 772 LF (92%) •Main Line Pipe Installed = 1555 LF (18%) •Blocks Fully Completed = 3 (out of 15) Headline Copy Goes Here 5 Work to Date Tunneling Activities July through October Headline Copy Goes Here 6 Work to Date “Open Cut” Pipe and Inlet Installations Pipe Inspections Headline Copy Goes Here 7 Work to Date Rain Garden at Oak & Howes Installation in Progress Street Enhancements Headline Copy Goes Here 8 Additional Funding Request Future Expenses: known future encumbrances •Professional Services for Phase 2 (RE, CM) •PM Time •City Department Support from Real Estate, Forestry, Streets, Parking, Light & Power, Customer Connections Pending Issues: potential future encumbrances •Added soil and backfill needs •Added concrete and asphalt replacements •Art in Public Places •Utility tie-ins and Inspections Contingency: For the unknowns that may happen on a project •Typical contingency assigned to this type of project is 5-10%. •Estimated contingency needed for this project is low relative to other projects because many high-risk items have already been built 1,500,000$ 582,358$ Total Project Appropriations 44,382,815$ 9 I move that Water Commission recommends City Council approve a supplemental appropriation of $1,500,000 from Stormwater reserves to complete the Oak Street Stormwater Project. Suggested Motion