HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/08/2021 - WATER UTILITY OVERVIEWDATE:
STAFF:
June 8, 2021
Theresa Connor, Interim Utilities Executive Director
WORK SESSION ITEM
City Council
SUBJECT FOR DISCUSSION
Water Utility Overview.
EXECUTIVE SUMMARY
The purpose of this item is to provide an overview of the Fort Collins water utility, which provides reliable, high -
quality water for approximately two-thirds of the city’s residents and businesses. On average, 26 million gallons
of water are treated every day. This represents one of the largest investments the City makes in the
Environmental Health Outcome Area within the City’s services. Investment will be needed now and into the future
to address aging water infrastructure, adapt to climate change, meet increased regulations, and ensure enough
water to sustain our community’s quality of life today and tomorrow.
GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED
Does Council have any questions or feedback about the strategic direction or operations of the water utility?
BACKGROUND / DISCUSSION
An annual update will be provided on each of the four incumbent utilities to provide Council an overview of the
utilities and opportunity to address any questions on policy al ignment or operations.
Water is an essential ingredient to the many activities and businesses that make Fort Collins special. This is the
second installment of the community-owned Utilities overviews and covers the water utility, which is responsible
for raw water collection and supply, water treatment and distribution to homes and businesses, water
conservation and customer programs.
Water and wastewater utilities are foundational community institutions that provide critical and reliable services
24/7/365 while protecting the health of our community and natural resources. The challenges we face today and
tomorrow require new technology, innovation, and foresight. Investments in our water resources and
infrastructure help protect our community and sustain our high quality of life. A high-quality, affordable, reliable,
and resilient water supply is the foundation for a thriving community. For over 140 years, Utilities has provided a
water supply that has met and exceeded the needs of its customers and this wa ter supply has allowed Fort
Collins to grow into a world-class community with a diverse economy.
The Numbers
• Residential customer accounts - 32,500
• Commercial customer accounts - 2,000
• Population served in 2020 - 142,000
• Average total daily treated water - 26 million gallons per day
• Average total water delivered - 8.7 billion gallons per year
• Acres of watershed above Poudre intake - 672,000
• Number of employees - 93
• 2021 operating budget - $17.9 million
• 2021 Capital Budget - $13.6M
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CUSTOMER SATISFACTION SURVEY
Utilities serves approximately two-thirds of the City’s population. Other areas of the city are largely served by the
East Larimer County Water District (ELCO) (northeast Fort Collins) or Fort Collins -Loveland Water District (south
Fort Collins).
Utilities has a long history of measuring customer satisfaction to ensure world -class customer service. In 2020,
Utilities transitioned its customer satisfaction survey to a benchmark survey with J.D. Power who compares the
results for Fort Collins Utilities with utilities nationwide and the mid-size west utilities. Utilities made this change to
support the Baldridge practice of benchmarkable data to understand how we compare industry -wide and
received J.D. Power information on what key performance indicators drive higher overall customer satisfaction
within the six factors of the survey. Utilities intends to conduct the J.D. Power surveys and other surveys to
capture the voice of the customer following this schedule:
• Even years (began in 2020): residential electric and water/wastewater surveys fielded in two waves to track
customer satisfaction.
• Odd years (beginning in 2021): commercial electric survey fielded in one wave. Utilize the Fort Collins
Community Survey to track Utilities residential customer satisfaction.
In 2020, the residential water/wastewater survey achieved a response rate of 4.4%, exceeding the goal of 99%
confidence level and less than 5% margin of error. The response rate was approximately 300% greater than the
previous survey participation rate. In addition to overall satisfaction, the survey uses six factors for measuring
customer satisfaction:
• Quality and reliability
• Billing and payment
• Price
• Communication
• Conservation
• Customer service
Key Performance Indicators (KPIs)
The KPIs below display a snapshot of the factors that were deemed most impactful to overall satisfaction.
Areas of Strength
• 91% of customers believe unfiltered water is safe or very safe (65%*)
• 81% aware of water conservation programs (58%*)
• 60% aware of efforts to improve impact on environments (45%*)
• 63% aware utility is ensuring adequate supplies of water in the future (45%*)
Areas of Improvement
• 25% aware of utility protecting water supply (30%*)
• 61% utility does a good job maintaining current water infrastructure (63%*)
*The average score of mid-size west utilities
The Overall Satisfaction score is calculated based on the weighted factors scores and attributes.
• Overall Satisfaction: Utilities scored 757 - above the national average of 742 and above the mid-size west
utilities of 739 - an excellent score for a newly participating utility. However, Utilities’ score of 757 was below
the top quartile score of 785, which is an overall customer satisfaction greater th an 75% of national utilities,
e.g., a top-performing utility.
• Quality and Reliability: Utilities scored 873 - above the national average of 777 and above the mid-size
west utilities of 774.
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• Billing and Payment: Utilities scored 801 - above the national and mid-size west utilities scores, both of
which are 791.
• Price: Utilities scored 627 - below the national average of 701 and below the mid-size west utilities score of
698. The average water bill as reported by customers was $79 compared to the ind ustry average of $85 and
mid-size west average of $87.
• Conservation: Utilities scored 742 - above the national average of 720 and above mid-size west utilities of
722.
• Customer Service: Utilities scored 783 - below the national average of 812 and below the average of mid-
size west utilities of 808. Customer service includes both the phone and digital experience. Overall, Utilities
performed above average on in-person and field personnel interactions and below average on the phone and
digital experience.
• Communication: Utilities scored 675 - below the national average of 705 and below the average mid-size
west utilities of 699.
In summary, the utility industry nationwide continues to respond to the needs and desires of customers and
scores continue to increase yearly. Partnering with J.D. Power enables Utilities to compare its performance
within the evolving industry to measure and achieve outstanding customer service.
Examples of Customer Programs
Income-Qualified Assistance Program (IQAP)
• IQAP is a reduced electric, water and/or wastewater rate that provides 23% off certain components of these
services. Customers that are enrolled in the Low-Income Energy Assistance Program (LEAP) are eligible to
apply for IQAP. Of the approximately 740 customers on IQAP, 215 receive the discounts on water and 216
receive the discounts on wastewater. Additional details at: fcgov.com/IQAP.
MyWater Customer Portal
• MyWater is an online portal available to all Utilities water customers. Customers can track water use and
costs, sign up for leak and water use alerts and notifications, and find ways to save. This system also delivers
customized reports about water use through the Home Water Reports program, though this has since
expanded to provide customized water use reports to commercial customers, as well. Customers appreciate
these programs: there is an open rate of over 50% for the reports (industry average is 25%). Registrations for
the portal tripled in 2020 and over 1,000 new customers have registered in 2021.
The Water System
The City’s water supply comes from two different, independent sources - The Cache la Poudre (Poudre) River
basin and Horsetooth Reservoir, which is part of the Colorado -Big Thompson (CBT) Project. As the name
suggests, CBT water stems from the Colorado River basin on the western slope of Colorado and is transported
to many communities on the eastern slope through a variety of reservoirs and pipes. The Poudre water source
begins at Cameron Pass with the Michigan Ditch capturing and bri nging water from the western slope into City-
owned Joe Wright Reservoir. This stored water along with native Poudre flows is captured near Gateway Natural
Area and conveyed to the City’s Water Treatment Facility where it is treated and distributed to Utili ties’
customers. Approximately 50% of Utilities’ total water supply comes from the Poudre River with the remaining
50% coming from Horsetooth reservoir through Soldier Canyon Dam into the Water Treatment Facility.
Source Water
Utilities uses approximately 25,000 acre-feet of source water each year to treat to potable standards for our
customers.
• Joe Wright Reservoir holds 7,400-acre feet at the headwaters of the Cache la Poudre watershed with water
from the Michigan River Basin.
• Poudre River - Utilities operates two intakes on the Poudre River.
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• Poudre River Raw Water Pipelines - Utilities has 13-miles of pipelines to convey raw water to the Water
Treatment Facility.
• Horsetooth Reservoir and CBT - potable water used is provided by Northern Water t hrough Horsetooth
Reservoir and the CBT Project that delivers water from the western slope.
Water Treatment Facility
• The Water Treatment Facility is rated to treat 87 million gallons a day (MGD). Summer peak demands are
approximately 50 MGD, while winter demands for indoor use only are approximately 14 MGD. The average
annual demand is 26 MGD.
• The Water Treatment Facility operates within and maintains an Environmental Management System ISO
14001 certification. The facility is recognized by the Colora do Department of Health and Environment
(CDPHE) as a Gold Level Environmental Leader and is also a Directors level participant in the American
Water Works Association (AWWA) Partnership for Safe Water, one of only 35 plants in the U.S. to attain this
certification.
Water Quality Lab
Water Quality Laboratory (WQL) plays a key role in ensuring that Fort Collins’ drinking water is safe and high -
quality from the time it leaves the treatment facility to when it reaches a customer’s home or business. Not every
water utility has its own WQL, but ours is certified by the State of Colorado for the analysis of drinking water,
which allows Utilities to meet the requirements of Colorado’s Safe Drinking Water regulations in -house. Having
City-owned laboratory facility is a cost-effective and agile way to monitor water, ensure its high-quality, and
quickly identify and react to any issues.
In addition to monitoring drinking water produced at the Water Treatment Facility, the WQL staff regularly test
samples from our source water supplies, including the Poudre River and Horsetooth Reservoir, from various
points across the water distribution system (including when water mains are installed or replaced), and from City
water features and pools. The WQL provides fee-based laboratory services to other regional entities that do not
maintain their own laboratories. Additionally, WQL staff respond to residents’ concerns and questions about their
drinking water, offering guidance and information, and collecting and testing samples as needed.
Distribution, Transmission and Water Meters
Utilities maintains:
• 546 miles of 4-inch to 60-inch diameter water distribution and transmission pipelines
• 39,279 water service lines
• 13,426 water valves
• 3,832 fire hydrants
• 35,800 water meters
The distribution system is generally sized to meet fire flow requirements. As the Downtown area increases in
density, the older, smaller diameter water mains will need to be replaced to meet modern requirements for fire
flow and pressure. Utilities experiences approximately 80-100 water main breaks a year. Most main breaks are
experienced in the area built during the 1970s and 1980s. The ductile iron pipe used during that time is thinner
and more subject to damage from the surrounding soils corroding the pipe from the outside. Water main breaks
tend to occur seasonally due to the impact of changing temperatures causing a shift in soil conditions. A leak
detection program is conducted year-round by the utility by setting loggers and “listening” to the mains for leaks
that may not be seen surfacing from the ground. Utilities does maintain a proactive maintenance program by
exercising valves and hydrants on a routine basis so that they work when they are needed.
The Water Meter Program uses Advance Metering Infrastructure (AMI) to record meter readings on a 15-minute
basis and transmit readings automatically. Fort Collins is rather unique in that two -thirds of the water meters are
inside customer’s homes or crawl spaces. This requires a great deal of c oordination with the customer to do
June 8, 2021 Page 5
appropriate meter maintenance. Meters and the AMI radio modules typically have a 15 -year life span and many
are coming up for replacement, so customer outreach will be needed to facilitate this work.
WATER RESOURCE MANAGEMENT PROGRAMS
Watershed Management
The Fort Collins Utilities Watershed Program’s (Watershed) mission is to monitor water quality for the protection
of the City’s drinking water supplies and the Poudre River. Watershed monitors the quality of the City’s drinking
water supplies, Halligan Reservoir and the Poudre Watershed in Fort Collins by leading or otherwise engaging in
several regional cost-share collaborative programs.
Watershed’s Source Water Protection Plan is used to prioritize watershed protection projects to reduce the risk of
pollution to protect the City’s drinking water supplies. Projects include, for example, forest treatments to mitigate
the risk of future large-scale, catastrophic wildfires; post-fire stream channel and hillslope restora tion;
development of a spill response plan; and a harmful algal bloom monitoring and action plan for Horsetooth
Reservoir.
Watershed staff lead a broad range of additional projects and programs to protect the overall health of the Poudre
Watershed; including, for example, the development of a watershed-wide River Health Assessment Framework
for assessing the ecological health of the Poudre; leading the development of guidance and policy for managing
water quality in City-owned lakes; and leading efforts to develop a real-time water quality monitoring program for
the Poudre River within Fort Collins. Watershed staff are also leading efforts to develop a One Water Initiative for
the City. This innovative initiative is intended to increase departmental alignm ent, communication, planning and
implementation to improve how the City manages its water resources, recognizing that all water has value.
Water Conservation and Efficiency Program & Services
The Utilities Water Conservation program is over 40 years old. Services and policies benefit the utility and
customers by delaying or avoiding significant capital costs and reducing water bills. The overarching goal of the
program outlined in the Council-approved and state-required Water Efficiency Plan is to reduce community water
use to 130 gallons per person per day by 2030.
Programs and services include residential and commercial water rebates; the Xeriscape Incentive Program (XIP);
24/7 access to near real-time water use data; customized water budgets and efficiency audits; critical internal
services, including irrigation plan review; and managing water demand and response during water shortages.
Each year, staff reach over 20,000 customers via a variety of education programs and services. Partnering with
our community in sustaining a conservation ethic has reduced water use by 35% since 2000.
Water Resources
Utilities Water Resources plans, tracks and accounts for water supply use in accordance with Colorado Water
Law. This group manages the daily operations and reporting needs for utilities-owned raw water supplies, protect
and develop utilities-owned water rights, and plan for future water supply needs. Additional activities include local
irrigation and ditch company relations and board participation and management of an annual raw water rental
program, which allows us to rent surplus water for the irrigation needs of local farmers and homeowner’s
associations. This program helps offset the cost of annual assessments for maintaining our portfolio of water
rights.
Colorado Water Law & Reusable Water Systems
Colorado Water Law is a complex system where all water in Colorado is essentially owned by the public and
entities then have water rights that give them permission to use water for a beneficial purpose. The s ystem is
based on the doctrine of prior appropriation, which commonly is referred to as “first in time, first in right”. The older
the water right, the more senior the water right. In times of short supply, junior water rights are only allowed to
divert water if all senior water rights holders have enough water. Utilities has three main sources of water supply,
the Poudre River, the Michigan River, and Horsetooth Reservoir, which have distinct regimes for when and how
these sources can be used.
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For the Poudre River, Utilities has numerous water rights to divert and use Poudre River water, including water
rights represented by shares in ditch and reservoir companies. This water is diverted into Utilities’ pipelines and to
storage. These water rights are confirmed in court decrees. The court decrees identify the key aspects of the
water right, such as the priority date. The court decrees also include terms and conditions on where, when, and
how the water may be diverted and used, and whether the water may be reused. Some of Utilities water rights
that were previously used for irrigation include return flow obligations, where Utilities must deliver water to the
river to maintain historical flow patterns. In times of limited supply, State of Colorado water admin istration officials
curtail diversions under junior water rights so that diversions under more senior water rights can continue.
For the Michigan River, Utilities has several water rights to divert and use Michigan River water. This water is
diverted into the Michigan Ditch and conveyed across Cameron Pass into the Poudre basin and Joe Wright
Reservoir. Like the Poudre River water, Utilities’ water rights on the Michigan River are also confirmed in court
decrees and are subject to curtailment to meet the needs of senior water rights. Much of this Michigan River water
is dedicated for use in a multi-faceted water sharing “Reuse Plan” with the Platte River Power Authority (PRPA),
the Water Supply and Storage Company, and Anheuser-Busch.
For Horsetooth Reservoir, Utilities has numerous contracts to use this water. This water is part of the CBT Project
and the Windy Gap Project, two related water supply projects that divert Colorado River water and convey it to the
northern Front Range. The Northern Colorado W ater Conservancy District (Northern Water) operates these
projects and owns the underlying water rights, with farmers and water providers like Utilities having contracts to
use this water. Some of the City’s rights to use CBT water are by virtue of Utiliti es’ ownership of shares in the
North Poudre Irrigation Company. Utilities’ rights to use Windy Gap water are part of the Reuse Plan.
Reclaimed Water
“Reclaimed” water generally refers to water that has been treated at a large wastewater treatment facilit y, such as
Utilities’ Mulberry and Drake Water Reclamation Facilities. This water is generally discharged back to the river,
though reclaimed water can be reused, depending on whether the underlying water rights allow for reuse. Most
Utilities’ water rights are “single use,” and thus do not allow for reuse. In partnership with PRPA under the Reuse
Plan, reclaimed water from the Drake Water Reclamation Facility is also pumped up to PRPA’s Rawhide Energy
Station for use there.
CHALLENGES TO OUR SYSTEM
Aging Infrastructure
Utilities is fortunate to have a strong investment in infrastructure through the history of service to the community.
Parts of the infrastructure are reaching or past their useful life and will need to be replaced or renewed soon.
Example of this infrastructure includes:
• The pipe network that conveys Poudre River Water through the Canyon and ultimately to the Water
Treatment Facility is between 70-100 years old. To avoid unplanned flow interruptions or pipe failures, capital
improvements to the pipe system will be necessary to maintain and replace the pipe system before it reaches
end of life.
• Much of the distribution system in Downtown Fort Collins is the original cast iron pipe, with some of it
exceeding 130 years in service. The typical expected life is 50-70 years for metal pipe systems and 100 years
for PVC pipe. In addition to age of pipe, the system is undersized in area to meet modern requirements for fire
flow at hydrants. Best practice in the industry is to replace 1% of the sys tem each year, so that every 100
years the system is renewed. Currently, the replacement rate is less than 0.5%, so the rate of replacement of
the distribution system should double over the coming years.
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• Prior to the 1950s and 60s, galvanized service lines were used from the distribution main to the house.
Because of the brittle nature of the galvanized steel that can cause leaks, Utilities has been replacing these
service lines since 1953. There are approximately 80 known galvanized services remaining in the system and
approximately 1,000 services of an undetermined material (either galvanized, copper, or plastic). The
galvanized services often have a short piece of lead pipe that connect it to the distribution system known as a
gooseneck. Utilities is developing a program (the Safe Water Action Program) to replace these old service
lines.
• The Water Quality Lab is nearly 50 years old and does not meet current code for some portions of the
building. Significant upgrades will be needed to maintain continu ity of operation at these facilities in the near
term. A recent assessment has also identified that the most cost -effective option for the long term is to build
new laboratories (vs. renovate the existing sites). Site and financing options are currently be ing explored.
• The Water Treatment Facility, including the mechanical and electrical equipment, is over 50 years and
requires constant maintenance, asset replacement and associated funding to ensure an uninterrupted water
supply. This work is achieved through a comprehensive asset management program that plans this important
work and ensures that equipment is fully operational at all times.
• The treatment process monitoring system at the Water Treatment Facility, known as Supervisory Control and
Data Acquisition (SCADA), is a critical system that also needs constant maintenance, asset replacement and
funding. Utilities staff also operate and maintain the SCADA system in accordance with published
cybersecurity standards and are constantly updating and improving the system to ever changing needs.
A Changing Climate Bringing Hotter, Drier Weather
Fort Collins has a semi-arid climate which means drought and wildfire have been part of our community forever.
As climate conditions change, scientists predict that Fort Collins will experience hotter and drier conditions, which
will reduce water supplies, increase water demands, increase soil aridification, and extend the irrigation season.
They also predict that more of our precipitation will fall as rain instead of snow, reducing the snowpack we and
many other communities rely on.
The recent Water Supply Vulnerability Study (Study) investigated the impacts of various risks on the reliability of
Utilities long-term water supply. This Study was the first of its kind for Utilities, highlighting some of the risks that
must be planned for in providing reliable service in the face of an uncertain future.
Key findings indicate:
• A warmer/drier climate poses the largest risk to the current long-term planning strategy.
• Adequate storage is crucial and current storage is not sufficient.
• Reductions in available supplies from the CBT Project via Horsetooth Reservoir have significant impacts to
system performance.
The Study will help inform the upcoming Water Supply and Demand Management Policy update, which is
discussed more below.
INNOVATION AND OPPORTUNITIES
Optimizing Operations
Efforts to reduce our carbon footprint and meet the City’s Climate Action Plan goals include a 95 -kW solar array
and a 79-kW micro-hydro power unit at the Water Treatment Facility. These efforts produce a combined 25% of
the facility’s annual electric power needs. The Water Distribution truck fleet is approximately 30% alternative fuel
based with efforts to replace all carbon fuel powered vehicles over time. The Water Treatment Facility is also an
ISO 14001 certified facility and implements and manages several energy conservation measures as part of this
program, such as decreased fuel usage, reduced electric power usage, environmentally f riendly landscape
management and comprehensive recycling and completing programs.
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Asset Reliability
Utilities uses an IBM Maximo Computerized Maintenance Management System (CMMS) to plan, schedule, and
track all asset management work at the Water Treatment Facility and in the water distribution system. Asset
condition, work history, and life-cycle data is monitored within Maximo’s dashboard. This information can be used
for equipment reliability practices such as root cause failure analysis (RCFA). It als o is used for key budget
decision making processes, such as identifying and tracking assets that are nearing the end of their life cycle, or
assets that are of poor condition and in need of renewal or replacement sooner than projected.
Regional Water Collaboration and Planning
Utilities works daily with the other water service providers within the GMA area and surrounding region. One
example is the response to and recovery from the Cameron Peak Wildfire. There is potential for more
collaboration and effective planning for future water supplies with greater coordination and collaboration at the
regional level.
Water Resource Strategies and Plans
Utilities manages water supply and demand through careful research and analysis regarding streamflow,
diversions, climate, customer demand and population estimates to ensure a clean, reliable water supply for
customers now and into the future. Our predecessors planned well for our present -day water resources, and we
are fortunate to have a vast portfolio of water rights and flexible water sources. However, we are expecting
greater population growth and climate-related challenges than our predecessors considered, and we need to
adapt how we plan and prepare for the future.
Utilities has the following water resource policies and plans:
• Water Supply and Demand Management Policy (WSDMP) (2012): A version of this policy has existed since
1988 and provides a foundational framework for demand management and water supply planning decisions.
The main objective is to pr ovide a sustainable and integrated approach to 1) ensuring an adequate, safe and
reliable supply of water for the beneficial use by customers and the community and 2) managing the level of
demand and the efficient use of a scarce and valuable resource cons istent with the preferences of water
customers and in recognition of the region’s semi-arid climate. It includes water demands, water supply
reliability, treated and raw water quality, use of surplus water and regional cooperation.
• Water Efficiency Plan (WEP) (2015): A version of this plan has existed since 1992. The WEP complements
the WSDMP by setting a goal and strategies to manage and reduce water use to an average of 130 gallons
per capita per day by the year 2030. After the significant statewide dr ought in the early 2000’s, the State’s
Colorado Water Conservation Board enacted legislation that requires most water providers to develop and
implement water conservation and efficiency planning. The team provides a progress report each spring to
the Water Commission and Council.
• Water Shortage Action Plan (WSAP) (2020): A version of this document has existed since 2003 and
complements the WSDMP by allowing the community to act during inevitable times of water shortages. The
recently updated plan details five action levels for Utilities and the community to use as they work together to
manage a potential or existing water shortage through a variety of water use management strategies. It
recognizes that water shortages can stem from drought, impacts to w ater quality (like from wildfire) and
infrastructure impacts. WSAP was used to manage risk during the 2020 Horsetooth Outlet Project, and we
are currently under a Water Shortage Watch as the impacts of the Cameron Peak Fire on our watershed may
affect water supplies in the Poudre.
The WSDMP and WEP both need to be updated in the next few years. New information and data are available
about water supplies, vulnerabilities, technology, cost of water resources, and water demand management
strategies. Further, the current plans and policies reflected the City’s 2010 Plan Fort Collins, and the next updates
will incorporate the context of the recently updated City Plan. In alignment with the statewide Colorado Water
Plan, the updates also will aim to better recogn ize the relationship between water and land use planning.
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The previously mentioned Water Supply Vulnerability Study has and will continue to inform these guiding
documents. Revisions to this policy are likely to include updated level of service goals fram ed by customer
experience and adoption of risk -based water supply planning objectives that embed demand management targets
and are based on selected planning futures. Consistent with industry best practice, Utilities intends to move away
from yield-based planning toward more flexible planning that considers, and more accurately analyzes, climate
change impacts and other water supply risks. Other regional water providers (e.g., Denver Water, Colorado
Springs Utilities) have already moved in this direction. The study provides a basis for a similar evolution of
Utilities’ planning.
The Right Water for the Right Use - Onsite Water Reuse Systems such as Graywater and Blackwater
Onsite systems reuse water at the building site for non-potable uses, such as toilet flushing or irrigation.
“Graywater” generally refers to small-scale water reuse. This involves capturing the wastewater from certain
indoor fixtures, performing simple treatment on that water, and then using that water again on the same parcel of
land. Graywater cannot currently be used in Fort Collins because the City has not enacted an ordinance
authorizing its use.
“Blackwater” reflects capturing the entire raw sewage stream from a building and providing a treatment system to
reclaim the water for irrigation use. Both systems are found to be most effective in multi-dwelling buildings, such
as apartments or dormitories.
Both systems would raise various issues with building codes and Colorado Water Law that would need to be
worked through before authorizing a program.
Water Storage
Halligan Reservoir is an existing reservoir on the North Fork of the Poudre River, 25 miles northwest of Fort
Collins. If approved, the Halligan Water Supply Project will enlarge Halligan Reservoir by approximately 8,1 00
acre-feet to meet the demand of future Utilities' water customers and provide increased reliability for existing
customers to help protect against service interruptions related to prolonged drought and emergencies. Utilities
currently owns and operates very little independent storage, which is a vulnerability in our system. Having more
storage would allow us to physically save and store more water conserved by our community for use during
droughts and emergencies.
The Halligan Water Supply Project is also an opportunity to restore environmental flows to portions of the North
Fork of the Poudre River. The environmental approach to the project is state of the art while providing essential
storage needed for future water supplies.
Permitting and planning for a project like this take many years and a lot of work. Here are some recent milestones
for the project:
• 2019: Draft Environmental Impact Statement released by the U.S. Army Corps of Engineers
• 2020: Launch of the two state permitting processes: The Fish & Wildlife Mitigation and Enhancement Plan
and the 401 Water Quality Certification.
More refined information about permitting, timeline and cost estimate for the project are being developed in 2021
and is expected to be available in early 2022.
FINANCIAL OUTLOOK
Utilities seeks to provide a high-quality product at a reasonable cost to the community. One way to monitor costs
is to compare rates with neighboring communities. Utilities is the most affordable when compared with other
communities. Smoothing out the rate and not implementing significant rate increases above 5% is a commitment
to the community to manage financial pressures from year to year. As Utilities deals with the need to address
infrastructure issues, such as expansion of the Halligan Reservoir and aging infrastructure at the treatment plant,
water quality lab and distribution system, rate adjustments and use of debt will be required in the future.
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The 10-year Capital Improvement Plan (CIP) for the Water Fund consists of projects needed to provide an
adequate water supply, treatment facility improvements and an increase in the renewal of the distribution system
to a more sustainable, long-term replacement rate. The Halligan Water Supply Project is anticipated to begin
physical construction in the 2025/26 BFO cycle with cost uncertainty being reduced through additional design and
mitigation refinements. The CIP is usually updated in the “off” BFO year, which is this year prior to the return of
the normal two-year BFO cycle for 2023/24. Inflationary pressure for construction activities and increased costs
for water resources will be factored into the update this year. The information presented here is from our latest
update, so changes can be expected in the next update.
June 8, 2021 Page 11
Water Operations
Operating revenues have grown modestly over the past decade through rate increases while total water
production has remained flat. Based on the projected revenue requirements for operations and maintenance
(O&M) and capital investment, revenues are projected to grow at a rate similar to the past decade.
$0
$5,000,000
$10,000,000
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$25,000,000
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$45,000,000
$50,000,000
Annual Operating RevenuesWater Fund Operating Revenues (2010 -2030)
Operating Revenue (2.0% per yr)
Assuming Historical Trend (3.0% per yr)
The colored area represents the 95% confidence band around the expected operating expense.
O&M expenses in the Water Fund have increased at a reasonable 2.9% annualized rate over the past d ecade.
This has been achieved through active management. The rate and debt issuance forecasts in the plan assume
that O&M will increase at a rate closer to the rate of consumer inflation over the coming decade.
$0
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$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
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$45,000,000
Annual Operating ExpensesWater Fund Operating Expensees (2010 -2030)
Operating Expenses (2.1%
per yr)
Assuming Historical Trend
(2.9% per yr)
The colored area represents the 95% confidence band around the expected operating expense.
June 8, 2021 Page 12
By limiting O&M to a modest rate of growth it is expected that the operating margin will decrease over the coming
decade, which will require rate adjustments to meet the expected increase in debt service r elated to significant
infrastructure investments.
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Water Fund Operating Income (2010 -2030)
OPERATING INCOME
Total Operating Revenue
Total Operating Expenses
Water Rate and Debt Forecasts
Rate increases are not anticipated to be significant over the coming decade, although any significant change in
the necessary capital investments may require modest rate adjustments to ensure adequate operating revenue is
generated to support the system renewal investments. Some debt will be needed for capital investments over the
next decade, including a significant issuance ahead of beginning construction on the Halligan Reservoir. An
update to the CIP is completed in the “off” years of BFO, which would normally be this year. The 10 -year capital
investment is expected to be completed this fall and presented to the Council Finance Committee in the winter
prior to resuming the normal two-year budget cycle for 2023/24. This will give a more accurate prediction of rate
needs.
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Rate Increase 0%0%2%0-2%0-2%0-2%1-3%1-3%1-3%2-4%2-4%
Debt Issuance $55-65M $30-35M
$209M of capital work is expected to be needed between 2020 and 2030 in addition to the current capital appropriations
ATTACHMENTS
1. Powerpoint Presentation (PDF)
Wa ter Utility Overview
Providing Safe, High-Quality, Reliable Water
ATTACHMENT 1
Overview 2
Are there any questions or feedback about the direction of
the Potable Water Utility?
Overview
1 |Strategic Plan Alignment
2 |Outcome of Service & Customers
3 |System Overview & Challenges
4 |Innovation & Opportunities
5 |Financial Considerations
6 |How It Happens –The People
7 |Questions, Comments & Discussion
3
City Strategic Plan Alignment
Livability Community Sustainability
Economic
Health
Poudre River
Ecosystem/Health
Environmental
Health
Public Health Safe
Community
4
History
Early Water Conservation Campaign 1908 –Filter Plant 1 –
Gateway Park
1870’s -First Water
Works –Overland Trail
Filters at Plant 1Water Wagon
5
Our Customers
Customer Breakdown
35,000+ ACCOUNTS
•32,000+residential
•3,000+ commercial
•Provide water to neighboring Water Districts
Customer Satisfaction
•91% of customers believe our water
is safe or very safe
•Fort Collins Utilities scored highest in Quality and
Reliability among all West Midsize Utilities
•Scored greater than national average in:
•Conservation
•Billing and Payment
Utilities Nat’l.
Avg.
West.
Mid-size
757 742 739
JD Power Survey
Overall Satisfaction Score
6
Customer Programs and Services
A r educed electric, water
and/or wastewater rate that
provides 23% off certain
components of these
services.
Rebates, services and
programs
•Residential
•Landscape and irrigation
•Business
•New development
•Monitor water use
•Commercial allotment
management
•Leak alerts
•Personalized ways
to save
Income-Qualified
Assistance Program (IQAP)
Conservation and
Efficiency Programs MyWater Customer Portal
7
Wa ter System
Overview
Michigan Ditch
Cache la Poudre River
Joe Wright Reservoir
Halligan Reservoir
Colorado-Big Thompson Project via
Horsetooth Reservoir
Water Treatment Facility
Intake
fcgov.com/water101
Delivered to Customers
Water Quality Lab
Watershed –Monitoring and Protection 9
By the Numbers –Source of Supply
Michigan Ditch
Joe Wright Reservoir
Horsetooth Reservoir -CBT
Poudre Intake
•7,400 acre-feet
at Joe Wright Reservoir
•25,000 acre-feet
of water used per year
•50/50 split
1.Poudre River
2.Colorado Big-
Thompson (CBT)
Project
•2 Poudre River intakes
•3 13-mile pipelines
10
Growth Management Area (GMA)
Fort Collins Utilities
ELCO Water District
Water Treatment Facility
Fort Collins
N
Fort Collins Loveland Water District
West Fort Collins Water District
Water Service Area 11
Fort Collins
N
•50M GALLONS of water treated per day in summer
•87 MGD maximum capacity
•72 MG buildout capacity
•8.7B GALLONS treated per year
•36M GALLONS of treated water storage
•170,000 PEOPLE served
•$500M+ asset
•High quality, reliable water supply with
very few customer complaints
By the Numbers –Water Treatment
LH25LH49
Slide 12
LH25 Add some WQL info to this slide? Check on population.
Liesel Hans, 5/12/2021
LH49 updated population to reflect water service area - got from Tony in WRD
Liesel Hans, 5/18/2021
Water Quality Lab
•20,000+ samples each year from the
Wa ter Treatment Facility, distribution
system, and raw water sources
•Ensures water is high quality before
water is delivered to customers
•Serves 13+ outside organizations
•Cost-effective way t o ensure quality
results and response
•Certified for drinking water testing by
Colorado Department of Public Health
and Environment
•Built in 1979 –aging facility
13
Maintain and Operate
•546 MILES
of distribution & transmission mains
•35,800 WAT ER METERS
•16,000 meters inside and 5,600 in crawl spaces
•13,400 WAT ER VALVES
•3,800 FIRE HYDRANTS
•135 Backflow Inspections Annually
Preventative Maintenance
•~50%or 1,882
of hydrants maintained annually
•~10%or 13,200
of valves maintained annually
•~80 miles
of water mains checked leaks annually
By the Numbers –Distribution 14
Fort Collins
By the Numbers –Distribution 15
Condition Length of Pipe % of
System
Ve ry Poor 8.6 miles 2%
Poor 12.8 miles 2%
Fair 34 miles 6%
Good 11 2.6 miles 21%
Excellent 378 miles 69%
Age of Water Mains
100+ years
80-100 years
60-80 years
40-60 years
Less than 40 years
Unknown age
Aging Infrastructure
Cracked Water Meter Galvanized Water
Service with Lead
Gooseneck
Mineral Tuberculation
Inside 1920’s 4” Main
Water Main Break
(Prospect/Lemay)
Failing HVAC at the
Water Quality Lab
Flowmeter at
Tr eatment Plant Pipe Inspection
Cybersecurity
16
Aging Infrastructure
Wa ter Main Leaks/Breaks (#/100 Miles)
•78 (14.3) in 2020
•96 (17.6) in 2019
•76 (13.9) in 2018
15 Leaks/Breaks per 100 miles is the
Partnership for Safe Water annual goal.
17
Climate Change and Resilience 18
Asset Reliability and Management
Asset Reliability
Risk of Failure =
Consequence x
Likelihood
Root Cause
Failure Analysis
Operational
Optimization
Capital Improvement
Forecasting
Asset Reliability
Risk of Failure =
Consequence x
Likelihood
Root Cause
Failure Analysis
Operational
Optimization
Capital Improvement
ForecastingWater Main Break Heat Map
19LH32
Slide 19
LH32 add in data management - highlight AMI data management work, ability to make better decisions,
measure, track, benchmark
Liesel Hans, 5/12/2021
Carbon Footprint Reduction
•79 Kw unit
•Operates 24/7 on the
Horsetooth supply
•Estimated net annual
energy production of
548,545 kW h
•Provides 21% of total
annual energy use at the
Water Treatment Facility
•95 Kw output
•Provides 5% of total
annual energy use at the
Water Treatment Facility
•Water distribution fleet is
~30% alternative fuel
Micro-Hydro Electric Power Solar Alternative Fuel Fleet
20
Environmental Initiatives
Environmental
Leadership Program
•Gold Leader
AW WA -Partnership
for Safe Water
•Presidents Award for
Tr eatment
•Directors Award for
Distribution
ISO 14001:2015 Certified
•40% reduction in
greenhouse gases at
the treatment plant
•20% reduction in
power usage
•Pilot to divert 500 tons
of solids per year
Environmental Management System
21
Water Resource Strategies
Planning for the Future
Conservation/Efficiency
Demand Management
22
Monitoring
Halligan Water Supply Project 23
Water Storage by Provider
Storage available to
water provider
CBT storage (pro rata)
Future Needs and Challenges
•Capital Improvement Plans (CIP)/asset
replacement
•Water supply and water quality
•Post-wildfire watershed recovery
and restoration
•Climate change
•Increased water storage and drought
protection:Halligan Water Supply Project
•Cybersecurity
•Increasing water purchase and capital
construction costs
•Changes in development revenues:
Plant Investment Fees (PIFs)
24
How Much Does Water Service Cost?25
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2013 2014 2015 2016 2017 2018 2019 2020 2021
Residential Water Monthly Bill
Longmont Greeley Loveland Ft Collins Boulder Colorado Springs
Fort Collins Utilities
Water Fund Capital Improvement Plan 26
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030Annual Capital InvestmentPrior Appropriations Water Distribution
Water Production Water Resources
Ave. Capital Investment 2021-2030 Historical Average Spend
Water Fund Operating Income (2010-2030)27
($5,000,000)
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
OPERATING INCOME Total Operating Revenue Total Operating Expenses
Finance 28
•Modest rate adjustments will be necessary over the coming decade
•Operating income diminishes in the future
•Tw o debt issuances are expected to be necessary for significant
infrastructure improvements over the coming decade
29How It Happens
How It Happens 30
How It Happens 31
How It Happens 32
How It Happens 33
How It Happens 34
How It Happens 35
How It Happens 36
How It Happens 37
How It Happens 38
How It Happens 39
How It Happens 40
How It Happens 41
How It Happens 42
43
Are there questions or feedback about the
strategic alignment of the Potable Water Utility?
For More Information, Visit
THANK YOU!
fcgov.com/water