HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/02/2021 - FIRST READING OF ORDINANCE NO. 038, 2021, ESTABLIS Agenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY March 2, 2021
City Council
STAFF
Meagan Smith, Water Resources Engineer
Donnie Dustin, Water Resources Manager
Eric Potyondy, Legal
SUBJECT
First Reading of Ordinance No. 038, 2021, Establishing Rental Rates a nd Delivery Charges for Use of Water
Available Under Fort Collins Utilities' Raw Water Interests for 2021 Through March 2024.
EXECUTIVE SUMMARY
The purpose of this item is to obtain Council approval for the proposed formulas for calculating rental rates and
delivery charges for Fort Collins Utilities’ (Utilities) raw water supplies for approximately three years, which
includes proposed rental rates and delivery charges for fully consumable water. The rates and charges would
be effective through March 2024, to address the gap between the end of 2023 and Council approval of new
rates and charges in early 2024. Setting the rates and charges via formula ensures Utilities will recoup its
costs for rented water while increasing the planning certainty for the wa ter rental community.
Staff is recommending an increase in the rental rate for fully consumable water. This increase will only impact
customers of our year-to-year leasing program. The increase reflects the cost of administering these rentals
and is in line with market conditions for this type of water. This is the only significant change to the rental rates
and delivery charges.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
The City is a shareholder in several local ditch and reservoir companies and holds allotment contracts for the
delivery of Colorado Big-Thompson Project (CBT) water. Utilities is responsible for most of these supplies. The
main use for these raw water sources is the treatment and delivery of potable water for the Utilities’ ratepayers.
There are also delivery obligations under existing agreements to provide raw water shares for use by certain
homeowner’s associations (HOAs), the Poudre School District (PSD), and some City de partments. After all
treated and raw water demands have been met, in most years there is surplus water that can be rented first to
other City departments (if needed) and then to other water users.
This proposed ordinance defines the formulas and rental rates for annual water rentals and delivery
agreements, not the availability of surplus water. It is staff’s discretion to determine on an annual basis the
availability of surplus water, and the timing of this decision will vary by source. There are many var iables which
can impact this availability, including snowpack in both the Poudre and Upper Colorado River basins, water
quality in both river basins, available water in storage, and infrastructure and maintenance considerations.
Impacts from the Cameron Peak and East Troublesome fires, as well as the ongoing drought will be weighed
when determining available surplus water for 2021 and subsequent years.
Staff proposes two categories for pricing raw water, as in past years:
Agenda Item 9
Item # 9 Page 2
Category 1 - Raw Water Rental Rates
• Sets the price for surplus water for use by water users outside of the City organization.
• There are active rental markets for many of Utilities’ surplus water sources.
• Typical customers are local agricultural producers, both large and small.
Category 2 - Raw Water Delivery Charges
o Sets the price for sources where Utilities has an on-going obligation to provide raw water for irrigation.
o Customers include specific HOAs, PSD, City Parks Department and Natural Areas Department.
o Typical uses include irrigation of some HOA greenbelts, some PSD fields, and some City parks and golf
courses, as well as some City augmentation needs.
Beginning in 2015, staff recommended, and Council adopted a formula -based approach to setting rental rates
and delivery charges for all of Utilities’ raw water sources except for fully consumable sources. The formulas
are a function of the annual assessment for each ditch and reservoir company plus an administrative fee. Staff
continues to receive positive feedback from th e rental community regarding this formula-based approach to
rate setting.
In 2018, staff recommended, and Council adopted this formula -based approach to setting rental rates and
delivery charges for Utilities’ raw water supplies for three years (through March 2021). This was a change from
the historical practice of having rates and charges approved for only one year at a time. This process change
reduced the administrative burden of the rental program and increased the planning certainty for the water
rental community. Staff is again recommending Council adopt the proposed formulas for calculating rental
rates and delivery charges for Utilities’ raw water supplies for three years.
CATEGORY 1 - RAW WATER RENTAL RATES
Active raw water rental markets include:
• North Poudre Irrigation Company
• Water Supply and Storage Company
• Colorado-Big Thompson Project
• Pleasant Valley and Lake Canal Company
• Southside Ditches
• Fully Consumable Sources
The only recommended change to the proposed formulas and fixed rates for r aw water rentals from the 2018
approved ordinance is for the raw water rental rate for Fully Consumable Sources.
North Poudre Irrigation Company (NPIC)
Rental Rates - In wet/average years, Utilities expects to have surplus NPIC water available for rent. Each
NPIC share has an agricultural (AG) component and a multiple use (MU) component. The volume of water for
each component varies annually and is set in April by the NPIC Board of Directors based on the company’s
water supply availability. Due to curre nt legal constraints, the AG component can only be used on land served
by the NPIC system and is rented to shareholders under that system. The MU portion of each NPIC share is
available for Utilities' use and is largely comprised of NPIC-owned CBT water. When users in the NPIC
system rent either AG or MU water, both components are delivered through the system in the same manner.
Therefore, for rentals made into the NPIC system, it is proposed both types of water be rented at the same rate
per acre-foot (AF).
Beginning in 2015, a formula was defined to set the raw water rental rate, incorporating the NPIC assessment
and share allocation to ensure the cost of the NPIC assessment was fully paid by the renter. This same
method is proposed for 2021 - 2023 and is defined below. The calculated rate is rounded up to the nearest
dollar and is defined by the NPIC allocation made annually in mid -April. The rental rate will remain fixed until
the assessment rate and allocation are defined for the next growing season.
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In some years there is a special class of NPIC water available for agricultural users for a very limited time early
in the growing season. This Early AG water has a limited rental market and thus warrants a significantly lower
rate. If Early AG water is available in 2021 - 2023, Staff proposes a rental rate of $15/AF to reflect its limited
use.
A possible range of calculated rental rates using the 2021 assessment of $180 with various potential
allocations is attached. Please note rates will change with any assessment changes in 2022 and 2023.
(Attachment 1)
Procedures - If the total volume of rental requests is greater than the available surplus water, Utilities will use
a proportionate allocation method based on the requester’s acr eage, as has been done since 2008. This
allocation method uses information provided by renters about their total land holdings served under the NPIC
system. These requesting acreages are then added together and divided into the total volume of City -owned
NPIC water available for rent in a given year. This AF/acre ratio is then applied to each of the requesters’ land
holdings to determine the maximum amount of rental water available for each requester. This allocation
method was developed at the request of NPIC renters to provide some water to all requesters each year.
Water Supply and Storage Company (WSSC)
Rental Rates - Water Supply and Storage Company shares can only be rented to water users under that
system. In 2019, Utilities began utilizing its WS SC ownership for treated water production, which reduced the
number of shares available to rent. WSSC continues to have an active rental market and the recent historical
rental rate of a WSSC share is $1,000 over assessment. It is recommended this method b e used to calculate
the WSSC share rental rate for 2021 through 2023.
Procedures - Available shares will be offered via lottery as in past years.
Colorado-Big Thompson Water (CBT)
Rental Rate - Utilities receives CBT water through allotment contracts with the Northern Colorado Water
Conservancy District (Northern) and through its ownership of NPIC shares. Utilities does not typically rent CBT
water from its own allotment contracts with Northern, but when available, Utilities will rent CBT water availa ble
through its ownership of NPIC shares. Utilities holds some of the NPIC MU water (largely comprised of CBT
water) for potentially high summer demands, then rents it to other (non -NPIC) renters later in the year if it was
not needed.
To use CBT water from its NPIC shares, the MU portion of the share is transferred as CBT water into the
Utilities’ CBT account. Beginning in 2015, Northern instituted a transfer fee for this type of operation. The
transfer fee is based on the CBT allocation, which varies f rom year to year. The 2020 fee for this transfer was
$56.25/AF. Depending on the CBT quota, the fee for this transfer in 2021 will likely be closer to $60/AF. The
assessed transfer fee is added to the cost of the rental (resulting in a rental price of $9 1.25/AF in 2020). Staff
recommends rentals of CBT water be made at a rate equal to the calculated NPIC rate plus the cost of any
transfer fees associated with the rental, rounded up to the nearest dollar.
Procedures - Utilities will first meet the CBT delivery obligations to City departments and other entities with
delivery agreements. If Utilities deems there is surplus CBT water available, it will then be offered to water
users on ditches that run through town. These ditches, known collectively as the “S outhside Ditches”, include
the Arthur, New Mercer, Larimer No 2, and Warren Lake Reservoir. The Pleasant Valley Lake and Canal
Company (PVLC) is also included in this tier. Surplus CBT water will next be made available to other Poudre
Basin water users. Finally, in the event any surplus CBT water remains, it will be offered to others within the
entire Northern District.
Agenda Item 9
Item # 9 Page 4
Pleasant Valley and Lake Canal Company (PVLC) and the Southside Ditches
Rental Rates - The rental market for raw water from the Southside Ditches and PVLC is very limited, however
Utilities can occasionally rent surplus water from these systems. Staff recommends the rate for these supplies
be set at 120% of the assessment rate, rounded up to the nearest dollar, for each ditch company.
Procedures - PVLC and Southside Ditch shares can only be rented to water users under each specific
system. As the market for these supplies is limited, availability of shares to rent will be determined by staff at
the time the request is made.
Fully Consumable Sources
Utilities has occasional rental demand for fully consumable water to satisfy State requirements for substitute
water supply and augmentation plans. Utilities historically only leases this type of water under short -term
arrangements of 1-year leases. In 2018, staff recommended, and Council adopted, a reduction in the rental
rate for this type of water from $600/AF to $400/AF. This reduction in rate was in response to increased
availability and flexibility of fully consumable supplies with opera tions at Rigden Reservoir. Over the past three
water rental seasons, staff has experienced that although operations at Rigden Reservoir allow for increased
flexibility, the administrative burden of managing leases for fully consumable water is greater tha n anticipated.
Staff proposes setting the rental rate for these sources at $600/AF for three years. Based on inquiries with
entities renting/leasing water with similar characteristics in Northern Colorado, this rate is well within the
market range for short term agreements for augmentation water.
Procedures - Utilities staff will monitor reusable sources and determine availability for rental at the time the
request is made.
CATEGORY 2 - RAW WATER DELIVERY CHARGES
Sources utilized for obligated raw water deliveries include:
• Pleasant Valley and Lake Canal Company
• Southside Ditches
• Colorado-Big Thompson Project
• Fully Consumable Sources
There are no recommended changes to the proposed formulas and fixed rates for raw water delivery charges
from the 2018 approved ordinance.
Pleasant Valley and Lake Canal Company (PVLC) and the Southside Ditches
This category sets charges for water delivered for use on City facilities, such as parks and golf courses, or
water delivered for use by other entities having me t the Utilities’ raw water requirement. Non-City organization
entities with raw water delivery agreements are typically HOAs and the Poudre School District. It is proposed
the delivery charges be set at 110% of each ditch and reservoir company per share an nual assessment,
rounded up to the nearest dollar. This is to help offset administrative costs.
Colorado-Big Thompson Water (CBT)
On occasion, Utilities will deliver CBT water to other City departments, typically for irrigation purposes. In those
instances, Utilities employs its available supplies through its allotment contracts with Northern. Staff
recommends setting the rate for delivery of this CBT water equal to the Northern assessment rate plus any
applicable Northern transfer fees, rounded up to the nearest dollar.
Agenda Item 9
Item # 9 Page 5
Fully Consumable Sources
Utilities has limited delivery obligations for fully consumable water where the Utilities’ raw water requirement
has been met. For these obligations it is proposed to maintain the historical delivery charge of $120/AF to help
offset operational and administrative costs.
Based on initial analysis, Staff recognizes this rate does not capture the full cost of administering these
obligations, however due to Staff and resource constraints Staff is not recommending a rate increase at this
time. Staff recognizes the need for additional analysis and outreach to potentially impacted customers of fully
consumable delivery obligations.
The water assessment rates as set by the ditch and reservoir companies for 2018 -2020 are included, as well
as the proposed assessment rates for most companies for 2021 due to COVID-19 related delays in annual
ditch company meetings. (Attachment 2) Also included are a list of the proposed formulas and fixed rates for
raw water rentals and delivery charges for 2021-2023 and the raw water rental rates and delivery charges set
by the City for 2019 and 2020, with the rates and charges for 2021 calculated from the proposed formulas and
assessments. (Attachment 3-4)
CITY FINANCIAL IMPACTS
Staff anticipates impacts to the availability of surplus supplies from both the Cameron Peak and East
Troublesome fires for 2021 and subsequent years. As such, revenue from the rental and delivery of raw water
will likely see a reduction and could be less than $500,000/year for 2021 - 2023. The average annual revenue
generated from the raw water rental program over the last five years is about $900,000. Revenues generated
by rentals typically off-set about 50% of the annual cost to Utilities of raw water assessments.
BOARD / COMMISSION RECOMMENDATION
On February 18, 2021, Water Board unanimously recommended Council adopt the proposed formulas for
calculating rental rates and delivery charges for Utilities raw water supplies, as well as the proposed rental rate
and delivery charge for fully consumable water for 2021 through March 2024. (Attachment 5)
PUBLIC OUTREACH
As this program has a targeted customer base, staff has historically provided outreach to specific audiences.
Announcements were made in 2021, as in years past, at NPIC and WSSC company annual meetings
regarding the availability of rental water and the processes for making requests.
In late 2020, staff created a website to communicate updates and accept rental requests for the Raw Water
Rental Program (<https://fcgov.com/water-rental>). Communication avenues also include a dedicated email
(waterrental@fcgov.com) and a dedicated phone line (970-416-2409).
ATTACHMENTS
1. NPIC Rental Rates for 2021 (PDF)
2. Water Assessment Rates (PDF)
3. Proposed Rental Rate and Delivery Charge Formulas (PDF)
4. Raw Water Rental Rates and Delivery Charges (PDF)
5. Water Board Minutes Excerpt, February 18, 2021 (draft) (PDF)
ATTACHMENT 1
Anticipated Range of NPIC Rental Rates for 2021
NPIC Assessment ($/share) 180.00 180.00 180.00 180.00
Potential April Ag Allotment (acre-feet/share) 1.25 1.50 2.00 2.50
Potential April MU Allotment (acre-feet/share) 2.25 2.50 2.75 3.00
Total April Allotment (acre-feet/share) 3.50 4.00 4.75 5.50
Assessment Cost ($/acre-foot) 51.43 45.00 37.89 32.73
Administration Fee ($/acre-foot) 2.00 2.00 2.00 2.00
Calculated Rental Rate ($/acre-foot) 54.00 47.00 40.00 35.00
ATTACHMENT 2
Water Assessment Rates
0B2018 1B2019 2B2020 3B2021
CBT (NCWCD, $/unit) 43.50 45.20 46.50 47.80
North Poudre Irrigation Co. ($/sh) 220.00 180.00 180.00 180.00
Water Supply & Storage Co. ($/sh) 3,000.00 3,000.00 3,000.00 3,000.00
Arthur Irrigation Co. ($/sh) 51.00 67.00 67.00 67.00
Larimer County Canal #2 ($/sh) 700.00 860.00 1,100.00 1,100.00
New Mercer ($/sh) 925.00 1,000.00 1,100.00 1,300.00
Pleasant Valley & Lake Canal ($/sh) 504.00 504.00 504.00 605.00
Warren Lake ($/sh) 500.00 500.00 525.00 550.00
Sherwood Reservoir ($/sh) 57.00 95.00 85.00 85.00
Sherwood Irrigation ($/sh) 1,545.00 1,875.00 2,250.00 2,750.00
Fully Consumable Sources ($/ac-ft) n/a n/a n/a n/a
Notes:
(1)Due to COVID related delays for annual irrigation company shareholder meetings, most 2021
assessments listed are proposed values.
Proposed Rental Rate and Deliver Charge Formulas
Surplus Raw Water Rental Rates
NPIC – Early AG (per ac-ft) $ 15.00
NPIC – AG or MU (per ac-ft) $[Assessment / (MU+AG Allocation)] +$2.00
CBT (per ac-ft) $ NPIC rental rate plus any Northern transfer fees
WSSC (per share) $ Assessment +$1000.00
Arthur Irrigation Co. (per share) $ (120 % of annual assessment)
Larimer County Canal No. 2 (per share) $ (120 % of annual assessment)
New Mercer Ditch Co. (per share) $ (120 % of annual assessment)
Pleasant Valley & Lake Canal Co. (per share) $ (120 % of annual assessment)
Warren Lake Reservoir Co. (per share) $ (120 % of annual assessment)
Sherwood Res. Co. (per share) $ (120 % of annual assessment)
Sherwood Irrigation Co. (per share) $ (120 % of annual assessment)
Fully Consumable Sources (per ac-ft) $ 600.00
Raw Water Delivery Charges
Arthur Irrigation Co. (per share) $ (110 % of annual assessment)
Larimer County Canal No. 2 (per share) $ (110 % of annual assessment)
New Mercer Ditch Co. (per share) $ (110 % of annual assessment)
Pleasant Valley & Lake Canal Co. (per share) $ (110 % of annual assessment)
Warren Lake Reservoir Co. (per share) $ (110 % of annual assessment)
Sherwood Res. Co. (per share) $ (110 % of annual assessment)
Sherwood Irrigation Co. (per share) $ (110 % of annual assessment)
Fully Consumable Sources (per ac-ft) $ 120.00
Notes:
(1) Rental rates may be adjusted to reflect the remaining yield or the prevalent market price of the
water stock being rented.
(2)The April allocation will be used to set the NPIC AG/MU price.
(3)Rates and charges are rounded up to the nearest dollar.
(4)The transfer fee charged on CBT rentals will be based on the quota at the time of the transfer.
ATTACHMENT 3
Raw Water Rental Rates and Delivery Charges
Source 2019 2020 2021
Surplus Water Rental Rates
CBT Water ($/ac-ft) 38.00 35.00 NPIC rate
+Transfer fee +Transfer fee +Transfer fee
Transfer fee – NPIC CBT to City ($/ac-ft) 62.43 56.25 Determined in April
NPIC – Early AG ($/ac-ft) 15.00 15.00 15.00
NPIC – AG or MU ($/ac-ft) 38.00 35.00 Determined in April
Water Supply & Storage Co ($/sh) 4,000.00 4,000.00 4,000.00
Fully Consumable Sources ($/ac-ft) 400.00 400.00 600.00
Arthur Irrigation Co. ($/sh) 81.00 81.00 81.00
Larimer County Canal #2 ($/sh) 1,032.00 1,320.00 1,320.00
New Mercer ($/sh) 1,200.00 1,320.00 1,560.00
Pleasant Valley & Lake Canal ($/sh) 605.00 605.00 726.00
Warren Lake ($/sh) 600.00 630.00 660.00
Sherwood Reservoir ($/sh) 114.00 102.00 102.00
Sherwood Irrigation ($/sh) 2,250.00 2,700.00 3,300.00
Raw Water Delivery Charges
Arthur Irrigation Co. ($/sh) 74.00 74.00 74.00
Larimer County Canal #2 ($/sh) 946.00 1,210.00 1,210.00
New Mercer ($/sh) 1,100.00 1,210.00 1,430.00
Pleasant Valley & Lake Canal ($/sh) 555.00 555.00 666.00
Warren Lake ($/sh) 550.00 578.00 605.00
Sherwood Reservoir ($/sh) 105.00 94.00 94.00
Sherwood Irrigation ($/sh) 2,063.00 2,250.00 3,025.00
Fully Consumable Sources ($/ac-ft) 120.00 120.00 120.00
Notes:
(1) Rates may be adjusted to reflect the remaining yield, or the prevalent market price of the water stock
being rented.
(2) Charges for those who have satisfied the City’s raw water requirements are set at 110% of the
assessments charged by that company.
(3) The transfer fee charged on CBT rentals will be based on the quota at the time of the transfer.
(4)Due to COVID related delays for annual irrigation company shareholder meetings, most 2021 rental
rates and delivery charges are based on proposed assessment values.
ATTACHMENT 4
Excerpt from Unapproved DRAFT MINUTES - WATER BOARD
REGULAR MEETING
February 18, 2021, 5:30 p.m. – 7:30 p.m.
via Zoom
0 2 /18 /20 2 1 – Excerpt from Unapproved DRAFT MINUTES Page 1
Raw Water Rental Rates and Delivery Charges
Water Resources Engineer II Meagan Smith provided a summary of the raw water
rental program, proposed formula for calculating rental rates and delivery charges,
and proposed rates. This agenda item is scheduled for first reading on the consent
agenda for the March 2 City Council meeting. This item shifted from an annual review
with Water Board and Council approval to an every-three-years review starting in
2018.
Discussion Highlights
Board members commented on or inquired about various related topics including
feedback from raw water customers on the proposal; curiosity about the biggest
customer (staff is restricted from sharing customers’ identities and will consult City
Attorney’s Office on confidentiality requirement); question on average amount of raw
water rented (20,000 acre-feet) and average amount of raw water that is treated
(25,000 af); lower rental sales expected this year due to wildfire.
Board Member Michael C. Brown, Jr. moved to that Water Board recommend
City Council adopt the proposed formulas for calculating rental rates and delivery
charges for Fort Collins Utilities raw water supplies, as well as the proposed rental rate
and delivery charge for fully consumable water for 2021 through March 2024.
Board Member Phyllis Ortman seconded the motion.
Vote on the motion: it passed unanimously, 10-0
ATTACHMENT 5
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ORDINANCE NO. 038, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING RENTAL RATES AND DELIVERY CHARGES
FOR USE OF WATER AVAILABLE UNDER FORT COLLINS UTILITIES’
RAW WATER INTERESTS FOR 2021 THROUGH MARCH 2024
WHEREAS, the City holds title to or otherwise has ownership interests in various water
rights, water right decrees, shares in ditch and reservoir companies (“shares”), and contractual
rights to the delivery of water that are sources of supply of raw and untreated water (together,
“Raw Water Interests”), many of which pertain to Fort Collins Utilities (“Utilities”); and
WHEREAS, the amount of water available under Utilities’ Raw Water Interests, at
certain times, may be greater than the immediate needs of Utilities and its ratepayers, and is thus
potentially available for use by persons outside of Utilities as a rental; and
WHEREAS, the City, through Utilities, has various agreements and understandings
pursuant to which Utilities allows persons outside of the City and certain City departments to use
water available under Utilities’ Raw Water Interests, provided that a charge for the delivery of
such water is paid; and
WHEREAS, pursuant to Article XII, Section 4 of the City Charter, if at any time the
water supply is greater than the immediate needs of the City and its inhabitants, the City Council
may authorize the City Manager to permit the use of such surplus water by consumers outside
the City at such rates as the City Council may prescribe, provided that no vested right shall
accrue under such permits; and
WHEREAS, pursuant to Article XII, Section 6 of the City Charter, the City Council shall
by ordinance from time to time fix, establish, maintain, and provide for the collection of such
rates, fees, or charges for water furnished by the City as will produce revenues sufficient to pay
the cost of operation and maintenance of the City’s utilities in good repair and working order and
to provide and maintain an adequate working capital fund for the day-to-day business operations
of the utilities; and
WHEREAS, Utilities staff has made a recommendation regarding the rental rates and
delivery charges for the use of water available under Utilities’ Raw Water Interests for a period
of approximately three years, through March 2024, which the Water Board has approved; and
WHEREAS, City Council finds that the rental rates and delivery charges set forth herein
are appropriate and will provide revenues that offset the cost of operation and maintenance of
Utilities’ Raw Water Interests and associated infrastructures and to keep the City’s utilities in
good repair and working order and to provide and maintain an adequate working capital fund for
the day-to-day business operations of the utilities.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That the City Manager and the Utilities Executive Director are hereby
authorized to make water available under Utilities Raw Water Interests for use by persons
outside of the City and certain City departments, provided; that such water can be rented or
delivered without adversely affecting the City or Utilities and its ratepayers; that no vested right
shall accrue under such use; and that appropriate rental rate or delivery charge set forth herein is
applied, which may be adjusted as the City Manager or the Utilities Executive Director
determine necessary to reflect the remaining yield for the prevalent market price of the water or
shares being rented in order to prevent undue economic loss to the City; and that the final price
may be rounded up to the nearest dollar.
Section 2. That the City Manager and the Utilities Executive Director are hereby
further authorized: to impose on such rentals and deliveries such additional terms and conditions
as they deem appropriate to protect the interests of the City and Utilities in and to Utilities’ Raw
Water Interests; and to deny any request for a rental or delivery, to the extent allowed by law, as
they deem appropriate to further the interests, policies, and values of the City.
Section 3. That all previous authorizations to make water available under Utilities’
Raw Water Interests are repealed in their entirety.
Section 4. That the rental rates set forth in the table below are hereby approved as the
City’s rental rates for 2021 through March 2024 for Utilities’ Raw Water Interests, provided that
the rental rate for fully consumable water shall apply through March 2024.
RATES FOR RENTALS OF SURPLUS RAW WATER
Type of Water Rate Per Acre Foot
Arthur Irrigation Company 120% of Annual Assessment
Colorado-Big Thompson Water from the
Northern Colorado Water Conservancy District
(Northern) associated with Shares in the
North Poudre Irrigation Company
Rental Rate for North Poudre Irrigation
Company (Seasonal Agricultural and Multiple
Use Water) + any Northern transfer fees
calculated at the time of transfer
Larimer County Canal No. 2 Irrigating
Company
120% of Annual Assessment
New Mercer Ditch Company 120% of Annual Assessment
North Poudre Irrigation Company:
Early Agricultural Use Water
$15.00 per acre foot
North Poudre Irrigation Company:
Seasonal Agricultural and Multiple Use Water
(Annual Assessment / (Sum of Allocation of
Seasonal Agricultural Use and Multiple Use
Water per share)) + $2.00 per acre foot
Pleasant Valley and Lake Canal Company 120% of Annual Assessment
Fully Consumable Sources $600.00 per acre foot
Sherwood Reservoir Company 120% of Annual Assessment
Sherwood Irrigation Company 120% of Annual Assessment
Warren Lake Reservoir Company 120% of Annual Assessment
Type of Water Rate Per Share
Water Supply and Storage Company Annual Assessment + $1,000.00 share
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Section 5. That the delivery charges set forth in the table below are hereby approved
as the City’s delivery charges for 2021 through March 2024 for Utilities’ Raw Water Interests.
RAW WATER DELIVERY CHARGES
Type of Water Rate Per Share
Arthur Irrigation Company 110% of Annual Assessment
Colorado-Big Thompson Water from the
Northern Colorado Water Conservancy District
Rental Rate for North Poudre Irrigation
Company (Seasonal Agricultural and Multiple
Use Water) + any Northern transfer fees
calculated at the time of transfer
Larimer County Canal No. 2 Irrigating
Company
110% of Annual Assessment
New Mercer Ditch Company 110% of Annual Assessment
Pleasant Valley and Lake Canal Company 110% of Annual Assessment
Sherwood Reservoir Company 110% of Annual Assessment
Sherwood Irrigation Company 110% of Annual Assessment
Warren Lake Reservoir Company 110% of Annual Assessment
Type of Water Rate Per Acre Foot
Fully Consumable Sources $120.00 per acre foot
Section 6. That City Council reserves the right to, in its sole discretion, amend,
change, or otherwise modify the rental rates and delivery charges set forth herein before March
31, 2024.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
March, A.D. 2021, and to be presented for final passage on the 16th day of March, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 2nd day of March, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk