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HomeMy WebLinkAboutWater Commission - Minutes - 04/20/2023 WATER COMMISSION REGULAR MEETING April 20, 2023, 5:30-7:30 p.m. Hybrid in person at 222 LaPorte Ave and online via Zoom 04/20/202 3 – MINUTES Page 1 1. CALL TO ORDER 5:33 p.m. 2. ROLL CALL • Commissioners Present: Paul Herman (Vice Chairperson), James Bishop, Kent Bruxvoort, Rick Kahn, John Primsky, Jason Tarry • Commissioners Absent - Excused: Jordan Radin (Chairperson), Greg Steed, Tyler Eldridge • Staff Members Present: Jason Graham, Katherine Martinez, Jen Dial, Michael Neale, Jenny Axmacher, Eric Potyondy, Kendall Minor, Katie Collins, Cindy Farnes • Members of the Public: None 3. AGENDA REVIEW Vice Chairperson Herman briefly summarized items on the agenda 4. COMMUNITY PARTICIPATION None 5. APPROVAL OF MINUTES Vice Chairperson Herman asked for comments or revisions to the draft minutes. There were none. Commissioner Bruxvoort moved to approve the March 16 minutes. Commissioner Kahn seconded the motion. Vote on the motion: it passed unanimously, 6-0 6. NEW BUSINESS a. Staff Reports (Attachments available upon request) i. Financial Monthly Report (meeting packet only; no presentation) Commissioners commented on or inquired about various related topics including: definition of “non-lapsing” revenue and expenses (Staff Liaison WATER COMMISSION REGULAR MEETING 04/20/2023 – MINUTES Page 2 Jason Graham stated he would request Strategic Finance Director Lance Smith to follow up with a definition: “Non-lapsing revenues and expenses are associated with one-time revenues and expenses. Most of the revenues come from either development fees, water supply requirements, or interest on reserves. Any money raised through a debt issuance would also be considered non-lapsing revenue. Non-lapsing expenses are capital investments in infrastructure and any debt service associated with such investments”); water conservation means reduced water use, which leads to decreased revenue; reason for expenses exceeding revenue: because it costs the same amount of money to treat the water; reductions in landscaping; water surcharges during irrigation season compensate for revenue shortfalls but eventually less capacity and use of system: do adjustments need to be made? (Mr. Graham stated no, not from an operations standpoint but future discussion topics include water allotment and charging an appropriate amount to be part of the system; Fort Collins Utilities is required to be revenue neutral per government regulations and the goal is to cover expenses; Utilities is allowed to build reserves). ii. Water Resources Monthly Report (meeting packet only; no presentation) Commissioners commented on the modified report that Water Resources Engineer Michael Neale presented at the April 6 work session; report will be further revised and switch to a quarterly recurrence per commissioners with the goal of reducing staff burden; the revised report to be presented at the July 20 meeting will include quota data (Northern Water Colorado-Big Thompson Project https://www.northernwater.org/what-we-do/deliver- water/colorado-big-thompson-project ) and North Poudre Irrigation Company (NPIC) allocation;; staff will conduct raw water rentals to bring in revenue (https://www.fcgov.com/utilities/raw-water-rental-program/ ); water supply and snow pack are good. iii. Land Use Code Water Adequacy Determination Update Principal Planner Jenny Axmacher of the City Planning Department provided an overview of the process and requested commissioners’ feedback and comments prior to presenting the revised draft code update to City Council on May 16. Water Resources Manager Jen Dial of Fort Collins Utilities assisted in answering questions. The City’s Land Use Code ( https://www.fcgov.com/housing/lucupdates ) regulates zoning, land use, building design, and more. Fort Collins’ existing WATER COMMISSION REGULAR MEETING 04/20/2023 – MINUTES Page 3 Land Use Code hasn’t had a major update since 1997. Just as the community has grown and needs have changed in the past 25 years, development regulations also need to evolve. On Nov. 1, 2022, City Council adopted a new Land Development Code that would have replaced the 1997 Land Use Code. A referendum was received and certified sufficient by the City Clerk. As a result, City Council repealed the ordinance and the new code did not go into effect on Jan. 1, 2023. Colorado Department of Public Health and the Environment (CDPHE) requires public water systems to demonstrate adequate capacity to construct, operate and manage new public waterworks. The City currently does not have a review process for non-standard water supply and service models. This proposed addition to the Land Use Code will create a comprehensive program for evaluating the water supply and service models of all new development. Water Adequacy is a new code division (3.13) that builds off existing adequate public facilities section 3.7.3 and creates three determination processes for different providers: (a) established potable water supply entities (such as Fort Collins-Loveland Water District and East Larimer County Water District [ELCO)]), (b) other potable water supply entities (such as new private water supplies or metro districts), and (c) non-potable water supply entities (such as irrigation water supplied by metro districts). Ms. Axmacher spoke to all districts this week: they do have water supply plans. For new water providers, staff will focus on water quality, quantity, and dependability: technical review will be done by outside consultant to be paid by applicant. Developers’ feedback: allow them to review earlier in the process. Staff is presenting to the Planning & Zoning Commission next week (https://www.fcgov.com/cityclerk/boards/planning-zoning ). Discussion Highlights Commissioners commented on or inquired about various related topics including variety of requirements among various communities and agencies; “Director” referred to in the presentation is the City Planning Director; cost is calculated into development costs; land uses including density; questions to be answered earlier in process to avoid surprises later; how a new supply is delivered to the water treatment plant (Mr. Graham stated we have adequate water rights so we’re not physically bringing in new water into system from developers; whether a developer could offer to add to the City’s Colorado-Big Thompson quota (City Water Attorney Eric Potyondy stated in general most WATER COMMISSION REGULAR MEETING 04/20/2023 – MINUTES Page 4 of Colorado’s stream systems are over-appropriated: developers typically bring water rights or a cash amount to develop water supplies); whether Fort Collins water would physically be in Northern Integrated Supply Project (NISP) water (Mr. Graham stated NISP water rights are junior to Fort Collins’ water rights; NISP does not contain City of Fort Collins water). Code update is for water providers to meet minimum standards; inside the Growth Management Area (GMA) some City residents are served by other water providers, thus the state requirements for water adequacy. Staff has had a conversation with water districts about adequate sources and the impact of development. The City has historically charged less expensive fees due to having senior water rights; discussion about it a couple of years ago; a commissioner took a tour of the Mosaic development and spoke with the developer: concerns that the formula used to calculate water required for each new residential unit may be outdated due to improvements in water efficiencies (Ms. Axmacher stated Mosaic is within ELCO service district: City has no influence over that issue through the code update process). A commissioner asked about a hypothetical scenario and the likelihood of a new development coming online and a water district needing to impose water restrictions but not the City: would the City be able to give them water? (Mr. Graham stated drought is an ongoing conversation among regional water providers; this code update is one way to try to stabilize and address it; Mr. Potyondy stated local water districts conduct water supply planning and are well-run: a drought would affect everyone; Mr. Graham reiterated those points and stated Fort Collins Utilities works well with neighboring water districts in the City’s growth management area and is involved in ongoing regional water conversations and collaborations. b. Regular Items: None 7. COMMISSIONER REPORTS: None 8. OTHER BUSINESS: None 9. ADJOURNMENT 6:23 p.m. These minutes were approved by the Water Commission on June 15, 2023.