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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/16/2003 - RESOLUTION 2003-104 ADOPTING A WATER SUPPLY AND DE AGENDA ITEM SUMMARY ITEM NUMBER: 26 September 16, 2003 FORT COLLINS CITY COUNCIL DATE: Sep ST Mike Smith IFF: nan Janonis/Dennis Bode SUBJECT: Resolution 2003-104 Adopting a Water Supply and Demand Management Policy. RECOMMENDATION: Staff and Water Board recommend adoption of the Resolution. FINANCIAL IMPACT: This Resolution adopts a policy regarding water supply and demand management that in itself does not have a financial impact. Separate actions to implement certain policy elements,such as new rate structures, incentive programs, and the development of additional storage capacity, will have financial impacts and will be brought to Council later as needed. The funds for this are budgeted in the Water Fund. EXECUTIVE SUMMARY: This resolution updates and integrates two previous resolutions: Resolution 88-205 Adopting a Water Supply Policy and Resolution 92-63 Adopting a Water Demand Management Policy. BACKGROUND: Several study sessions were held last year with the City Council regarding the City's water supply system and future needs through 2040. As a result of those meetings, the Council requested that staff evaluate the City's present water demand and develop an integrated water supply and demand management policy. Staff gathered additional information regarding water use,received input from a number individuals and groups regarding water use and water supply, and reviewed the proposed integrated policy at Council's August 12, 2003, study session. As a result of the direction received at this meeting, staff revised Section La. to reflect an average day goal of 195 gallons per capita per day(gpcd)by 2010 and peak demand goal of 502 gpcd. Section 2.c.was revised to show the storage capacity associated with the new goals. Staff has also substantially narrowed the range of storage needed to a range of 15,500- 17,000 acre-feet because of the concerns expressed at the study session that the previous range was too broad. This new range is based on serving new growth within the City's service area and other areas defined by existing intergovernmental agreements. Sepr DATE: emr , ITEM NUMBER: 26 Although water supply planning will be based on policy goals,conservation efforts are expected to reduce average day water use below 195 gpcd and peak daily demand to less than 502 gpcd. LIST OF ATTACHMENTS: July 28, 2003, letter from Water Board August 11, 2003, letter from Natural Resources Advisory Board September 2, 2003, letter from Water Board RESOLUTION 2003-104 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING A WATER SUPPLY AND DEMAND MANAGEMENT POLICY WHEREAS,a Water Supply Policy was adopted by the City Council in December 1988 to help direct the acquisition, development, and management of the City's water supplies since that time; and WHEREAS, a Water Demand Management Policy was adopted by the City Council in April 1992, which set water use goals and provided for measures to help meet those goals; and WHEREAS, there is a need to update the water supply and demand management policies to provide guidance regarding the future development and use of the City's water supplies; and WHEREAS,the Council has requested that staff develop an integrated water supply and demand management policy; and WHEREAS, the Fort Collins Water Supply and Demand Management Policy attached hereto as Exhibit"A"and incorporated herein by this reference has been developed over the last several years through discussions with interested citizens, groups, the Water Board and City Council. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the City Council hereby adopts the Fort Collins Water Supply and Demand Management Policy attached hereto, to provide general criteria for City decision making regarding water supply projects, acquisition of water rights, and demand management measures. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 16th day of September, A.D. 2003. Mayor ATTEST: City Clerk EXHIBIT"A" Fort Collins Water Supply and Demand Management Policy September 16, 2003 Policy Objective: To provide a sustainable and integrated approach to: (1) providing an adequate 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. 1. Demand Management a. Water Use Goals. The City will implement the necessary water conservation practices and programs to reduce its water use to an average of 195 gallons per capita per day (gpcd) by the year 2010. In addition, the per capita peak daily demand will be reduced to 502 gpcd by the year 2010. These calculations are based on the total treated water produced for use by City customers (adjusted for large contractual customers and other sales or exchange arrangements) divided by the estimated population of the City's water service area. b. Educational Programs. The City will have a continuous, comprehensive and visible public education program that helps citizens and businesses use water appropriately and efficiently. Examples of such programs include: (1) working with the schools to provide water conservation education; (2) promoting the use of xeriscape landscaping for public facilities, businesses, homeowners, and others; (3) helping the public to understand and utilize evapo-transpiration information in determining their irrigation applications; and (4) educating water users on the operation of sprinkler system controllers. C. Rate Structures. The City will have water rate structures for all classes of customers that provide an economic incentive to use water efficiently. Examples of structures that may be utilized include: (1) tiered structures with increasing prices as water use increases; (2) seasonal blocks with higher rates during the irrigation season; and (3) water budget approaches based on appropriate targets for individual customers. d. Incentive Programs. When determined to be cost effective, the City will implement incentive programs that will assist customers in replacing outdated plumbing fixtures or landscape features that use excessive amounts of water. Examples for reducing indoor use are rebates for replacing showerheads, toilets and clothes washers with water conserving models. Examples for reducing outdoor use include rebates for expenses related to irrigation scheduling equipment and converting landscape to xeriscape. e. Regulatory Measures. The City will maintain and/or adopt regulations that promote water efficiency and reduction of water waste while recognizing the benefits of adequate water to maintain an attractive and pleasant environment in the City. Examples include regulations that require the amendment of soils with organic materials and prohibition of homeowner associations banning the use of xeriscape. The City will also review its Land Use Code for potential revisions which would limit bluegrass turf on new landscapes and prohibit landscaping that requires irrigation in certain areas such as medians, thin strips, and other small areas. f. Ooerational Measures. The City will establish practices and procedures to deliver and use water in its facilities without excessive losses. Examples of such practices are the leak detection program to reduce losses through the Utility's water distribution system and the recycling of backwash water at the Water Treatment Facility. 2. Water Supply for Municipal Use a. Drought Criteria. The reliability of the Fort Collins water supply should be maintained to meet at least the 1-in-50 year drought event in the Cache la Poudre River Basin. Water rights and storage capacity should be acquired ahead of the time it is needed to meet at least the 1-in-50 year drought criteria, so as to provide enough time to seek and obtain water court decrees and diversion or storage facilities, if needed, to use such water. b. Raw Water Requirements (RWR) The City shall require developers to turn over water rights, or cash in-lieu-of water rights, such that the total water supply available for municipal purposes is adequate to meet or exceed a 1-in-50 year drought over the long term. Cash collected shall be used to purchase additional water rights, acquire or develop additional storage capacity, or enter into other arrangements that will increase the long-term reliability of the City's supply system. C. Storage Capacity. The City will pursue the acquisition or development of storage capacity which is needed to manage the City's water rights in an efficient and effective manner and which will enhance the City's ability to get through at least a 1-in-50 year drought. New storage capacity in the range of 15,500 to 17,000 acre-feet shall be pursued to: (1) help meet return flow obligations incurred from transfers of water rights from agricultural use to municipal use; (2) provide carryover water from wet years to dry years; and (3) provide operational flexibility, some redundancy and reliability. Storage options include the enlargement of Halligan Reservoir, the development of local gravel pits into storage ponds, the acquisition of storage capacity in new or existing reservoirs, or some combination of the above. d. Use of Existing Supplies The City will use its existing supplies to meet municipal obligations with the following priorities: (1) to meet water demands by the City's treated water customers; and (2) to meet raw water needs in the City and to meet other obligations of the City. Raw water needs include use for such purposes as irrigation of City parks, golf courses, cemeteries, and other greenbelt areas. Other raw water obligations include primarily water transfers to other entities because of agreements or exchanges made to manage the water supply system more effectively. Water not needed for the above purposes is referred to as surplus water and may be made available to others in accordance with decrees and other policies that may apply. 3. Water Supply Shortage Response Plan The City will maintain a plan for responding to situations where there are projected water supply shortages, either because of severe drought conditions or because of disruptions in the raw water delivery system. This plan may include measures to temporarily reduce water use through media campaigns, various regulations, restrictions, rate adjustments and others. The plan may also include provisions to temporarily supplement the supply through interruptible water supply contracts, leases, exchanges and operational measures. 4. Use of Surplus Raw Water To the extent the City has surplus raw water available after meeting the needs of its treated water customers and meeting other raw water obligations, it will make water available to entities or individuals at a fair rental market price that helps offset the City's cost of owning such supplies. Other objectives or uses of the surplus water include, in no particular order, providing irrigation water to farmers to provide for the continued production of agricultural crops in the Cache la Poudre River Basin and the Northern Colorado Water Conservancy District, helping maintain open space and natural areas supported by Fort Collins, and providing for other uses as opportunities arise. 5. Regional Cooperation a. Working with Other Municipal Providers The City will continue to work with the water suppliers throughout the Northern Colorado Front Range to assure that adequate supplies are maintained in the region. When benefits are identified, the City will cooperate with area entities in studying, building, and sharing capacity of water transmission lines, distribution systems, and storage reservoirs. Entities in this area that have many common interests with the City and which the City has the potential to cooperate with include the Soldier Canyon Filter Plant and the associated water districts, the City of Greeley and the Northern Colorado Water Conservancy District. In particular, the City should work closely with water districts that serve Fort Collins residents to encourage similar policies regarding drought protection and to provide mutual assistance during emergency situations. b. Working with Local Irrigation Companies. The City will continue to cooperate with local irrigation companies regarding the transfer, exchange and use of water in the Cache la Poudre River Basin. As a major shareholder in many of the local irrigation companies, it is necessary and desirable that the City work closely with these companies. C. Transferring Water Rights from Agricultural to Municipal Use The City will periodically transfer its water rights from agricultural use to municipal use on those shares that come from areas upon which the City is growing, or from shares where the irrigation of such lands has ceased. For water rights that were derived from irrigated agricultural lands that remain in viable agricultural areas, the City may transfer these water rights to municipal use when a need is identified or other factors make it prudent to do so. To the extent that this water remains surplus to the City's need, the City will continue to support the local agricultural economy by renting this surplus agricultural water back to irrigators under the respective irrigation companies. 6. Raw Water Quality The City will take a proactive role in protecting the quality of water in the various watersheds from which the City's raw water is derived. The acquisition, development, and management of the City's raw water will be consistent with the City's Drinking Water Quality Policy and other applicable policies related to watershed protection. 7. Stream Flow and Ecosystem Protection To the extent the City's use of its water rights and water resources are not adversely affected, the City will cooperate with other local groups or agencies to encourage flows in local streams to protect the ecosystem, in accordance with Colorado water law and the administration of water rights in Colorado. 8. Recreational/Aesthetic Flows To the extent the City's use of its water rights and water resources are not adversely affected, the City will cooperate with other local groups or agencies to explore projects or measures that would provide flows in streams and water in reservoirs for recreational and aesthetic purposes, in accordance with Colorado water law and the administration of water rights in Colorado. Utility Services Water Board City of Fort Collins MEMORANDUM RECEIVEn DATE: July 28,2003 SEP 0 5 2003 T0: Mayor and City Council CITY R11OHNEY FROM: Tom Sanders, Water Board an SUBJECT: Water Supply and Demand Management Policy Update The Water Board has worked with the Utilities' staff for several years in updating the City's water supply and water demand management policies. At the July 24,2003 Water Board Meeting, staff presented a proposed water supply and demand management policy. The adoption of a revised policy is very important in providing the City and the Utilities' staff with guidance regarding both water demand and water supply in future years. By way of this memorandum, I want to summarize the Water Board's position regarding the recommended policy. While there are many parts to the proposed policy,there are some key provisions in the proposed policy that the Water Board desires to provide a recommendation to City Council that is slightly different than that proposed by staff. One such key provision is to lower the average per capita use goal from the current goal of 195 gpcd to 185 gpcd and the peak-day demand from the current 502 gpcd to 475 gpcd. The Water Board voted 6-2 to retain the current water use goals of 195 gpcd and 502 gpcd. While the Water Board is highly supportive of ongoing water conservation efforts, it has serious concerns about reducing the target use level. The current level of use is not excessive and provides many benefits to the community in the way of personal hygiene,a green attractive landscape, economic activity, and other uses. Existing customers have paid for the existing supplies and should not be penalized with policies that effectively make this supply available to new residents. Using the 195 gpcd for planning purposes would also affect the amount of storage needed to manage the City's water rights and get through the 1-in-50 drought(see paragraph 2.c. of the policy). This range would increase from 11,000 to 22,000 acre-feet to a range of 14,000 to 27,000 acre-feet. The Board would like to express its concern about some of the demand management approaches that may result in adverse effects in the community such as a reduction in attractive landscapes or economic hardships for some customers. Of particular concern are rate structures(see paragraph l.c. of the policy) that may go too far in penalizing residents that have large lots or other high water users. While increasing block rates may be effective in reducing overall water use, the potential for causing inequities among customers is greater than compared to the use of a flat 700 Wood Street • P.O. Box 580 • Fort Collins_, CO 80522-0580 - (970) 221-WI Water Board Recommendation July 28, 2003 Page 2 structure. In addition, the Board is concerned that some proposed changes to the Land Use Code (see paragraph Le. of the policy) may result in limiting some attractive landscapes in certain places within the City. While very supportive of the rest of the policy, the Water Board hopes you will seriously consider the above concerns as you consider this important policy revision. In the past,the City has had well thought-out policies that have resulted in appropriate levels of water use and an excellent supply system. As we approach the next few decades, we should adopt policies that will further promote the efficient use of our current supplies and the development of a reliable system that will meet the needs of both existing and future customers. We look forward to discussions regarding these important issues. cc: Michael Smith John Fischbach t Community Planning and Environmental Services Natural Resources Department City of Fort Collins MEMORANDUM REGE��E� FROM THE CITY OF FORT COLLINS NATURAL RESOURCES ADVISORY BOARD MP 0 5 DATE: August 11, 2003 TO: Mayor and Council Members VII T Jknfoi4i*]y, FROM: Randy Fischer on Behalf of the Natural Resources Advisory Board SUBJECT: NRAB Recommendation on the Water Supply and Demand Management Policy In preparation for your August 12 study session, the Natural Resources Advisory Board (NRAB) is forwarding it comments and recommendations to the Council regarding the City's Water Supply and Demand Management Policy (Water Policy). The NRAB met on August 6, 2003, to discuss the City's Water Policy and received a presentation by the Water Utilities staff. The Board developed the following comments and recommendations regarding the draft water policy: 1. First and foremost, the NRAB strongly supports a true tiered rate structure as a means of managing demand for our scarce water resources. Board members believe the market- based incentives offered by a true tiered rate structure are the most equitable and democratic means of discouraging wasteful water usage. The Board recommends against any weakening of the conservation rate structure adopted by Council in the summer of 2002. (Refer to the NRAB memo dated August 8, 2002, on conservation water rate structure). Specifically, board members oppose "water budget" type rate structures in lieu of the current tiered rate structure. Furthermore, the Board believes that tiered rates should remain in effect at all times, not just during drought events. 2. The NRAB supports the Water Policy's proposed conservation goal of 185 gallons per capita per day (gpcd). Board members believe the 185 gpcd goal is achievable, fair, and equitable, although some members think this goal not ambitious enough. This conservation goal is a key assumption in the estimation of carry-over storage requirements to meet the 1 in 50 drought protection standard. Significantly larger storage requirements along with their accompanying environmental impacts will result if the 185 gpcd conservation goal is not adopted. 3. Although the Board generally supports the draft policy, we recommend that Council reserve final judgement of the draft Water Policy pending clarification of the assumptions on which the cant'-over storage requirements are based. Several Board members believe the range presented in the draft Water Policy of 11,000 acre-feet to 22,000 acre-feet of new carry-over storage capacity is too broad. In addition, the assumptions on which this range of options is based need to be clarified prior to adopting the policy. The NRAB believes a public debate concerning the City water utility's future service area needs to occur prior to deciding what amount of carry-over storage will be needed. NRAB Recommendation 1 Water Supply and Demand Management Policy August 11,2003 281 North College Avenue • P.O.Box 580 • Fort Collins,CO 80522-0580 • (970)221-6600 • FAX(r/0)2224-6177 4. Board members believe the standard for"attractive landscaping" referenced in the policy needs better definition. Specifically, the NRAB believes landscaping standards in our climatic zone should NOT be based on unrealistic expectations of the same lush verdant foliage characteristic of more humid zones. Fort Collins' landscaping standards should take our geographical and climatic limitations into consideration. As always, please feel free to contact me with any comments or questions regarding our recommendations on the water supply and demand management policy. Yours truly, Randy Fischer, Chair Natural Resources Advisory Board 226-5383, e-mail: karand(cDfrii.com cc: John Fischbach Greg Byrne Mike Smith Brian Janonis Dennis Bode 2 Utilities Water Board lia City of Fort Collins MEMORANDUM DATE: September 2, 2003 RECFIVPn TO: City Council /a SEP 0 5 MW FROM: Tom Sanders, t� I`3i t SUBJECT: Water Supply and Demand Management Policy Update This is following up the letter to City Council dated July 28, 2003 regarding the Water Board's recommendations and concerns regarding the proposed Water Supply and Demand Management Policy Update. The Water Board met again on August 28 to discuss the proposed policy. It desires to pass on to Council a couple of recommendations regarding the wording in the policy. These proposed changes are minor, but important, to the Water Board. The first recommendation is to revise section l.c. regarding rate structures to include a reference to a flat rate as one possible structure. Board members believe that a rate that remains constant with increasing water use does provide an economic incentive to use water efficiently—simply because the customer's cost increases as water use increases. The second recommendation pertains to section 5.b. regarding cooperation with local irrigation companies. It is recommended that the word, "storage", be inserted in the first sentence of section 5.b. after the word"exchange". This addition would recognize that storage is an important part of managing the supply and use of water associated with most irrigation companies. Board members supported both of the above recommendations unanimously(9-0). The Board continues to believe that the adoption of this policy is an important step in providing for the continued efficient use of our water supplies and the development of a reliable system that will meet the needs of both existing and future customers. Thank you for considering our views. cc: Michael Smith John Fischbach -P7 1Aood fit. • P.O. Box 580 - Fort Collies, CO 80522-0580 • (97M, 2--6700 • FAX (9701 221-6619 • TDD (970j ?24-6003