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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 11/20/2012 - RESOLUTION 2012-099 ADOPTING A WATER SUPPLY AND DEDATE: November 20, 2012 STAFF: Donnie Dustin Kevin Gertig AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 27 SUBJECT Resolution 2012-099 Adopting a Water Supply and Demand Management Policy. EXECUTIVE SUMMARY The Fort Collins Utilities staff has updated the City’s Water Supply and Demand Management Policy (Policy), which will provide further direction regarding the planning, management and maintenance of the City’s water supplies and demands. The updated Policy was brought before City Council for adoption on October 30, 2012. Council requested some minor adjustments to the updated Policy language. Utilities staff has made the requested changes to the updated Policy. BACKGROUND / DISCUSSION The process of updating the Policy has been ongoing for over two years. A full description of the history, supporting information, economic and environmental impacts, recommendations and public outreach are provided in the attached agenda item summary from the October 30, 2012 City Council meeting. Additional materials from this meeting are available for review on the City’s website at www.fcgov.com/cityclerk/agendas.php. At its October 30 meeting, Council requested two adjustments be made to the Policy. The first request was to adjust the second bulleted item in the introduction of the Policy update to not combine social and economic issues. This request was addressed by taking out portions of the second bullet and making a slight change to the third bullet to more clearly denote the three elements of sustainability; environmental, social and economic considerations. The second request was to incorporate language in the Policy that directs the Utilities to continue to provide a “culture of innovation”. This request was addressed by including additional language throughout the Policy. Language was added to the introduction of the Policy (just after the bulleted items), the bulleted items in Sections 1.0 and 2.0, and in the last sentence of Section 5.0. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. ATTACHMENTS 1. October 30, 2012 Agenda Item Summary for Policy Update COPY COPY COPY COPY ATTACHMENT 1 DATE: October 30, 2012 STAFF: Donnie Dustin Kevin Gertig AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 5 SUBJECT Resolution 2012-099 Adopting a Water Supply and Demand Management Policy. EXECUTIVE SUMMARY The Fort Collins Utilities staff has been working on updating the City’s Water Supply and Demand Management Policy. The current Policy was adopted by City Council in September 2003 (Resolution 2003-104). Since the Policy’s adoption, the Utility has seen a significant reduction in water use while continuing to plan for future water needs. The updated Policy will provide further direction regarding the planning, management and maintenance of the City’s water supply system needed to assure a safe, reliable drinking water supply and provide for an appropriate level of water conservation. It will also provide guidance on how the City may use its valuable water resources to meet other beneficial purposes for its citizens and the surrounding community. BACKGROUND / DISCUSSION History Since the Fort Collins Water Utility’s origin in the 1880s, the City has been focused on providing a high quality and reliable water supply to its customers. Policies that have supported the Utility in providing this water supply, as well as encouraging water conservation, have included the 1988 Water Supply Policy, the 1992 Water Demand Management Policy and the current 2003 Water Supply and Demand Management Policy. This Policy update should continue the objectives of providing a sustainable and integrated approach to ensuring an adequate, safe and reliable supply of water for the beneficial use by customers and the community, while managing the level of demand and the efficient use of a scarce and valuable resource. Much of the work on the Policy update was performed in 2011 and included educating and gathering input from a Community Working Group (CWG) that had diverse water related backgrounds and perspectives. After six meetings with the CWG, a draft Policy update was developed that incorporated many of their issues and concerns. The proposed Policy update was presented to Water Board at its November 17, 2011 meeting. After much discussion, the Board voted unanimously to recommend to City Council support for the draft policy. The Policy update was presented to City Council during a work session on January 10, 2012. Council did not feel the Policy update was ready for adoption and requested additional information. Much of the material developed for the Policy update, CWG and Water Board was provided to the City Council for the January 10, 2012 work session. Materials provided for that meeting are available for review on the City’s website at www.fcgov.com/cityclerk/agendas.php. One of the key updated Policy sections that was discussed during the January 10, 2012 work session (as well as by the CWG and Water Board) was the water supply planning criteria. The three main planning criteria used to develop the City’s water supply system are the drought criterion, storage reserve factor and planning demand level. These criteria determine the amount of water supplies and/or facilities the City needs (e.g., the amount of storage required) and should be somewhat conservative to account for uncertainties in water supply planning. The following describes each of these criteria separately. Drought Criterion The drought criterion defines the level of reliability for the City’s water supply system. In general, water supply systems yield less in more severe droughts. For example, a water supply system that can provide 30,000 acre-feet of water through a 1-in-50 year drought might only be able to provide 20,000 acre-feet during a 1-in-100 year drought. The City has used a 1-in-50 year drought criterion since the 1988 Water Supply Policy. This criterion has provided a reliable supply system to date, but not without issues during the early 2000s drought. COPY COPY COPY COPY October 30, 2012 -2- ITEM 5 Storage Reserve Factor A storage reserve factor is a criterion to have a certain percent of annual demand in storage through the design drought criterion (1-in-50 year drought). This storage reserve provides a short-term supply to address emergency situations, such as pipeline shutdowns (which can and have occurred during drought conditions). Acquiring storage in the Poudre Basin for meeting the storage reserve would help diversify the City’s water supply system, which is highly reliant on CBT storage. The storage reserve factor can be equated to the number of months of demand that can be met as shown in the following table: Storage Reserve Factor # of Winter Month Demands # of Summer (July) Month Demands 0% 0.0 0.0 5% 0.9 0.4 10% 1.8 0.7 15% 2.8 1.1 20% 3.7 1.5 25% 4.6 1.8 Planning Demand Level The planning demand level is the amount of demand the water supply system should be developed to meet. Since acquiring water supplies takes many years, projecting future demands is required to determine which supplies and/or facilities need to be acquired. The planning demand level is measured in gallons per capita per day (GPCD) and is used along with projected population and large contractual use needs to determine future demand levels (and thus water supplies and/or facilities to acquire). The planning demand level can be higher than current use or water conservation goals to account for uncertainties in water supply planning that might reduce the yield of the City’s water supplies. The City’s current average water use is 150 GPCD and the 2009 Water Conservation Plan has a goal to reduce use to 140 GPCD by the year 2020. The water supply planning criteria values initially presented in the updated Policy were those being used by the Corps in the permitting process for the Utilities proposed enlargement of Halligan Reservoir, which has been ongoing for several years. The criteria originally presented in the updated Policy were the values currently being used in the Halligan permitting process of the 1-in-50 year drought criterion, a planning demand level of 162 GPCD (2002-2007 average use), and a 15% storage reserve factor. Although there were some divergent views from CWG members on these planning criteria, the majority of CWG members felt that the water supply planning criteria (used in the Halligan permitting process) were set at reasonable levels. The Water Board also discussed and considered changes to these criteria during its November 2011 meeting, but decided they should remain the same to avoid potential delay to the Halligan permitting process. At the January 2012 work session, some Council expressed concern with having a planning demand level that is above our current water use level (150 GPCD) and water conservation goal (140 GPCD), and wanted a clearer explanation of the planning criteria and how they relate to the City’s water supply needs, the size of Halligan Reservoir and the City’s water use and conservation efforts. As a result, Council did not feel the Policy was ready for adoption. A summary of its feedback during the work session is attached (Attachment 1), along with staff responses to Council’s issues (Attachment 2). Following the City Council work session, Utilities staff contacted the Corps to ask how changes to the planning criteria in the Policy would affect the Halligan Reservoir permitting process. The Corps stated it conducts an independent study of the City’s water supply needs and that the planning criteria values being used in the process seemed reasonable. Prior to issuance of a permit, the Corps will revisit these values and make adjustments as necessary. This input allowed for some flexibility in the planning criteria values used in the updated Policy. Utilities staff met with the Water Board’s Water Supply Committee on April 16, 2012 and the full Water Board on July 19, 2012 to discuss potential options for changing the water supply planning criteria. Changes to these criteria focused mainly on revising the planning demand level (in GPCD) and the storage reserve factor (SRF). Several options for COPY COPY COPY COPY October 30, 2012 -3- ITEM 5 Policy to include the planning criteria suggested by the Water Supply Committee of 150 GPCD and 20% storage reserve factor. The Board’s discussions are described in the attached Letter of Support and Water Board minutes (Attachments 3 and 4). In addition to the issues regarding the water supply planning criteria, Council wanted the updated Policy to include more focus on economic development and water innovation as well as a discussion on the relationship of population growth to water supply and demand planning. The updated Policy now includes these changes, along with the revised water supply planning criteria recommended by Water Board. The Council work session, scheduled for August 28, 2012 to further discuss the updated Policy (among other topics), was cancelled. Following the cancelled work session, Council Leadership reviewed the material provided and determined that an additional work session was not necessary and asked that the updated Policy be presented to City Council for formal adoption. Supporting Information Water Use The City currently delivers about 26,000 acre-feet/year of treated water and 4,000 acre-feet/year of raw water (which irrigates the City’s parks, golf courses, etc.). Demand levels have declined significantly over the last few decades from around 230 GPCD in the early 1990s to about 200 GPCD before the drought year of 2002. The average use over the last several years (2006-2011 normalized use) has been about 150 GPCD, indicating a 25 percent reduction in per capita water use from before 2002. The majority of these water use reductions have come from the City’s residential customers, but the commercial sector has also reduced its water use significantly. These reductions are a result of water conservation efforts by our customers that have been aided by the City becoming fully water metered in 2003 (along with tiered and seasonal rate structures) and the Utilities water conservation program. Utilities conducted a landscape preference survey with an online survey panel to gage customer’s desire for changing landscapes in Fort Collins as it relates to the potential for additional water conservation and its potential impact on existing landscapes. Results of the survey indicated general satisfaction with current landscapes in Fort Collins (especially trees) and support for additional xeriscape. Results indicated no strong opinion regarding additional water conservation, which coincides with recent general Utilities surveys that indicate the majority of customers believe water conservation efforts are at the correct level. Water Supply Sources The City’s water supplies generally come from two main sources: the Poudre River and the Colorado-Big Thompson Project (CBT). On average, the City gets about half its treated water supply from each of these sources each year. The City’s Poudre River water supplies include its senior direct flow rights, converted agricultural rights (mostly from shares in the irrigation ditches that run through the City) and the Michigan Ditch and Joe Wright Reservoir system. The CBT supplies are administered by the Northern Colorado Water Conservancy District (NCWCD), which allocates the supplies to unit owners through a variable annual quota. The City receives delivery of its allocated water from Horsetooth Reservoir and does not own or operate that reservoir. Policies of the NCWCD limit carryover of unused CBT water in the project facilities (including Horsetooth Reservoir). The yield of the City’s water supplies is mostly dependent on snowmelt runoff, which is subject to high annual and monthly variability. Because the City plans for its water supply system to meet demands through a 1-in-50 year drought, there are adequate supplies in most years. The City can currently meet about 31,000 acre-feet/year of treated water demands through the 1-in-50 year drought without restrictions. Future Water Demands and Supplies The Water Utility is expecting a future projected need of approximately 37,400 acre-feet/year of treated water demands by 2050 (at 150 GPCD). The increase in demand is mostly from a projected increase in population of around 35,000 people in the Water Utility service area, but also includes an increase in large contractual use of approximately 3,000 acre-feet/year. This future demand should be near a build-out condition, since the Water Utility has a limited growth potential due to surrounding water districts. These districts will meet some of the future water demands projected within the City’s Growth Management Area. The City will continue to acquire additional water rights and/or cash in-lieu-of water rights through Raw Water Requirements, which requires developers to turn in water rights or cash to meet the water needs of additional COPY COPY COPY COPY October 30, 2012 -4- ITEM 5 development. The City has been working towards acquiring and/or developing storage capacity to help manage its current and future water rights. Operational storage is a critical need to help meet legal requirements associated with the City’s converted agricultural rights. The City is pursuing local gravel pits to meet these operational storage needs. Carryover and vulnerability protection storage can help meet the City’s projected future demands, as well as provide a storage reserve for disruptions to the City’s supply system. The City is pursuing the enlargement of Halligan Reservoir to meet these types of storage needs. Water Supply Planning Criteria As discussed above, these criteria determine the amount of water supplies and/or facilities the City needs (e.g., the amount of storage required) and should be somewhat conservative to account for uncertainties in water supply planning. The 1-in-50 year drought criterion defines the level of risk for the City’s water supply system. The 20% storage reserve factor provides a short-term supply to address emergency situations. This factor incorporates having 20% of annual demand in storage (through the 1-in-50 year drought), which equates to about 3.5 months of winter (indoor) demand or about 1.5 months of summer demand. Acquiring storage in the Poudre Basin for meeting the storage reserve would help diversify the City’s water supply system, which is highly reliant on CBT storage. The 150 GPCD planning demand level is higher than the 140 GPCD water conservation goal to account for uncertainties in water supply planning, such as the potential effects of climate change. Water supply planning is a long-term process with many uncertainties. The water supply planning criteria seek to balance the benefits and risks of developing a reliable water supply with the associated costs and impacts of doing so. These criteria determine the amount of supplies and/or facilities needed, but it is the City’s water use that mostly impacts the river system (except for construction and inundation impacts to the river). Planning for higher water use levels could provide the City more flexibility to use supplies for other benefits such as supporting local agriculture, if the City continues to reduce water use (e.g., meets the water conservation goal). Surplus Raw Water The City has surplus supplies in many years as a result of planning its supplies for meeting demands through a 1-in-50 year drought. Most of these surplus supplies are currently rented to agriculture on a year-to-year basis that generate revenue and help reduce water customer rates. The City recognizes recent interest in entering long-term arrangements with agricultural renters. Any unused or unrented surplus water is essentially left in the River, which is typically diverted by the next senior water right(s). Using the City’s surplus supplies for instream flows is currently difficult under current Colorado water law. However, Utilities staff is working with other City departments and the State of Colorado on initiatives to improve Poudre River flows. Environmental Considerations The City’s water use reduces flows in the Poudre River and other watersheds. However, most of the flow reductions on the Poudre River (between the lower Poudre Canyon and the middle of Fort Collins) are from irrigation company diversions. Most diversions for the City’s future uses will not reduce flows through Fort Collins, since the City will mostly use water from converted agricultural shares that have historically diverted upstream of Fort Collins. Key Policy Elements The Policy update has significantly changed from the current Policy adopted in 2003 and was developed with much input from the CWG, as well as some revisions from the Water Board and City Council. The following are the key updated Policy elements: • General Policy Language and Introduction In order to align with Plan Fort Collins and incorporate sustainability concepts, references to policies stated in Plan Fort Collins and incorporation of triple bottom line concepts (considering economic, environmental and social aspects) have been added throughout the Policy update, especially in the introduction. • Water Use Efficiency and Demand Management This section reduces the average daily use (water conservation) goal to 140 GPCD by 2020, compared to 185 GPCD in the current policy. This revised goal was developed in the 2009 Water Conservation Plan, which COPY COPY COPY COPY October 30, 2012 -5- ITEM 5 includes programs and measures used to reach the goal. Since it may be updated on a more regular basis (at least every 7 years), future conservation goals will be adjusted by subsequent Water Conservation Plans. The Policy also states the peak day use goal of 350 GPCD by 2020, compared to 475 GPCD in the current policy. In addition, this section mentions the use of water rate structures to provide an economic incentive to use water efficiently and how population growth is connected to water supply and use. • Water Supply Reliability This section uses the three main planning criteria discussed above to develop the City’s water supply system. The Policy states that the City’s water supplies should be maintained to meet an average demand of 150 GPCD through at least a 1-in-50 year drought, while maintaining 20% of annual demand in storage through that drought. These criteria are designed to deal with potential uncertainties in water supply planning, one of which is the potential effects of climate change. In addition, this section mentions maintaining a plan for responding to projected water supply shortages. • Additional Supplies and Facilities This section addresses alternatives for meeting the City’s future needs that best fit the City’s water supply system. It includes working towards long-term water sharing arrangements with agriculture and is not specific about the amount of storage capacity required. • Water Quality This section focuses on protecting our watersheds and maintaining the taste and quality of our treated water. • Surplus Raw Water This section includes a strong commitment to use the Utilities surplus supplies for beneficial purposes such as supporting local agriculture and supplementing flows in the Poudre River. • Regional Cooperation This section directs the City to maintain good working relationships with regional entities that are affected by the City’s water use and supply planning. Once the updated Policy is approved, Utilities staff and consultants will create a report that summarizes the updated Policy and provide supporting information. This report will be provided to City Council and others once completed. Summary The Water Board’s recommended changes to the water supply planning criteria and the options presented to it should provide an adequate and reliable water supply with only a slight change to the previously projected amount of water supplies and/or facilities required to meet the City’s future needs. Also, the updated Policy will provide further direction regarding the planning, management, and maintenance of the City’s water supply system needed to assure a safe, reliable drinking water supply and incorporates an appropriate level of water conservation. It will also provide guidance on how the City may use its valuable water resources to meet other beneficial purposes for its citizens and the surrounding community. FINANCIAL / ECONOMIC IMPACTS Reliable water supplies are essential to providing economic health and sustainability in Fort Collins. These supplies provide economic and social benefits to the City’s citizens, businesses and surrounding community by having adequate water for health and public safety; home, school and industrial use; and healthy landscapes. The updated Policy will guide the Utilities in preparing for future water supply needs and continued demand management. Most of the Utilities operations associated with the Policy update are currently funded, such as the Water Resources Division and the Water Conservation Program. Most of the actions, projects and/or programs that will be guided by the updated Policy are either already approved (including funding) by City Council or will be brought before them in future individual actions. COPY COPY COPY COPY October 30, 2012 -6- ITEM 5 ENVIRONMENTAL IMPACTS The updated Policy will guide the Utilities’ actions, projects and programs that may have both positive and negative environmental impacts. In general, the City’s use of local and regional water supplies has adverse effects on its surrounding natural environments. However, actions taken through the City’s water conservation and other efforts help to reduce those impacts. The updated Policy seeks to balance the benefits of providing a reliable water supply with the environmental impacts associated with providing that supply. Individual actions, projects and/or programs that will be guided by the updated Policy will be brought before the City Council in the future, at which point the environmental impacts can be more fully described. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BOARD / COMMISSION RECOMMENDATION The Water Board unanimously voted to approve the updated Policy with adjustments to the water supply planning criteria mentioned above in the background section. The Board’s discussions are described in the attached Letter of Support and Water Board Minutes. PUBLIC OUTREACH Much of the work for the Policy update was performed in 2011, including an extensive public outreach effort mainly through the formation of a Community Working Group (CWG). Six meetings were held with the CWG to inform and discuss policy issues and their direct input was used to develop the updated Policy. Their input and discussions were documented in a memorandum that was provided with the January 10, 2012 work session materials, which is still available for review on the City’s website at www.fcgov.com/cityclerk/agendas.php. A letter from CWG member Gary Wockner (Save the Poudre: Poudre Waterkeeper), who requested it be given to City Council and Water Board, along with staff responses to those comments are attached for review (Attachments 5 and 6). The Water Board was involved throughout the entire Policy update process in order to provide City Council with its recommendations. In addition to the outreach with the CWG and Water Board, much of the Policy update information was posted on the City’s website, a landscape preference survey was conducted with a Utilities customer online survey panel, and presentations were given to 12 other City boards and interested organizations (22 groups were contacted). A letter from the Larimer County Board of County Commissioners is attached for review (Attachment 7). Through these various public outreach efforts, the three levels of the public engagement spectrum (inform and consult, involve and collaborate) were employed. Opportunities were provided in all these efforts for individuals to provide comments on the Policy update, which provided few comments which were similar to the CWG and Water Board input. Given this level of public outreach and since additional outreach was not requested during the January 10, 2012 work session, no additional outreach was performed. ATTACHMENTS 1. January 10, 2012 City Council Work Session Summary 2. Response to City Council Work Session Feedback 3. Water Board Recommendation 4. Water Board Minutes (relevant portion from July 19, 2012 meeting) 5. Save the Poudre Letter 6. Response to Save the Poudre Letter 7. Larimer County Board of Commissioner’s Letter 8. Glossary of Water Resources Terms 9. Powerpoint Presentation RESOLUTION 2012-099 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, in 2003, the City Council approved Resolution 2003-104, adopting a Water Supply and Demand Management Policy to provide guidance regarding the future development and use of the City’s water supplies; and WHEREAS, since that time, there have been significant reductions in the City’s water use; and WHEREAS, it is a high priority of the City to provide an adequate, safe and reliable supply of water for our community, while considering the potential effects of climate change on those supplies; and WHEREAS, managing water use in Fort Collins to reduce impacts to the environments from which the City’s supplies come is an important community value; and WHEREAS, in light of the foregoing, and following discussions with interested citizens, stakeholder groups, the Water Board and City Council, City staff has developed a proposed Fort Collins Water Supply and Demand Management Policy, dated October 2, 2012, a copy of which is attached hereto as Exhibit “A” and incorporated herein by this reference (the “Policy”); and WHEREAS, the concepts and principles to be incorporated into the Policy and a draft of the Policy were presented to, and discussed with, the City Council at a work session on January 10, 2012, and at the City Council's October 2, 2012, regular meeting; and WHEREAS, a draft of the Policy was also presented to, and discussed with, the Water Board at the Board’s July 19, 2012, meeting, and the Board’s recommendations have been incorporated into the Policy attached hereto; and WHEREAS, it is the desire of the City Council to formally adopt and approve the Policy. 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, to provide general criteria for City decision making regarding water supply projects, acquisition of water rights, demand management measures, and other water supply and demand related issues. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 20th day of November A.D. 2012. Mayor Pro Tem ATTEST: City Clerk 1 City of Fort Collins Water Supply and Demand Management Policy The City of Fort Collins’ Water Supply and Demand Management Policy provides a foundational framework for water supply and demand management decisions concerning the City’s water supply system. Operational and management actions and decisions by the Water Utility will be consistent with the provisions of this policy. Objective To provide 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 consistent with the preferences of Water Utility customers and in recognition of the region’s semi-arid climate. This objective aligns with the 2010 Plan Fort Collins that provides a comprehensive 25-year vision for the future development of Fort Collins. Policy ENV 21.2 of Plan Fort Collins states, “Abide by Water Supply and Demand Management Policy: Provide for an integrated approach to providing a reliable water supply to meet the beneficial needs of customers and the community while promoting the efficient and wise use of water.” This Water Supply and Demand Management Policy calls for a “sustainable and integrated approach” to water demand and water resources management. Sustainability is defined within the context of the triple-bottom-line decision making in Plan Fort Collins as, “To systematically, creatively, and thoughtfully utilize environmental, human, and economic resources to meet our present needs and those of future generations without compromising the ecosystems upon which we depend.” Aligning with Plan Fort Collins, the Water Utility will take a leadership role by incorporating the triple-bottom-line in its management of water supply and demand. When this core value is applied to the use and development of our valuable water resources, the Utility will strive to:  Avoid, minimize or offset impacts to our environment  Consider the social benefits and impacts of having a reliable and high quality water supply  Analyze the economic cost to provide such supplies, while also considering the effects it has to our local and regional economies The Utility will continue to provide a culture of innovation that finds proactive and creative solutions in managing its water supplies and demands, which is a dynamic process that evolves along with changes in data management and technology, legal and political environments, economic development and water innovation, and as the State’s population continues to increase. Given these factors, it is important to maintain an up-to-date effective policy that is based on current data. The policy’s terms and conditions should be reviewed and updated by 2020, or sooner if desired by the City Council or the Utilities Executive Director. EXHIBIT A 2 1.0 WATER USE EFFICIENCY AND DEMAND MANAGEMENT The City views its water use efficiency program as an important proactive response to supply variability and climate change. Elements of the City’s conservation program include reducing indoor demand through improved technology, leak reduction and behavior change and reducing outdoor demand through improved irrigation efficiency and reasonable changes in landscaping. The City believes water use efficiency is of vital importance for many reasons, including to:  Foster a conservation ethic and eliminate waste  Demonstrate a commitment to sustainability  Provide water for multiple beneficial purposes  Reduce the need for capital expansion projects and certain operational costs  Encourage and promote innovation in water demand management  Prepare for potential impacts of climate change 1.1 Water Use Efficiency Goals for Treated Water Use The City’s 2009 Water Conservation Plan1 established a goal of reducing the City’s treated water use to 140 gallons per capita per day (gpcd)2 by the year 20203. The City will utilize water use efficiency measures and programs with the aim of reducing its water use to an average of 140 gpcd, subject to 1) continuing study of the water requirements of the City’s urban landscaping, 2) impacts on water demand due to changes in land use policies, building codes and housing trends, 3) additional studies on climate change, and 4) changes in the water use goal as may be adjusted by any subsequent water conservation plans. This water use goal is subject to change as discussed above and is intended as a goal that can be met while sustaining reasonable indoor and outdoor values of the City. The per capita peak daily demand4 will be reduced or maintained to be no more than 350 gpcd by the year 2020, but may be adjusted by any subsequent water conservation plans. 1.2 Water Use Efficiency Program Policy ENV 21.2 of Plan Fort Collins states, “Conservation measures should be implemented in accordance with the Water Conservation Plan and periodically adjusted to reflect new and effective conservation measures.” The City will optimize water use efficiency through the programs and measures specified in its Water Conservation Plan. These programs and measures include educational programs, incentive programs, regulatory measures and operational 1 State guidelines are changing the terminology of Water Conservation Plans to Water Use Efficiency Plans, and likewise conservation is being changed to water use efficiency. For purposes of this policy, water use efficiency is referred to as water conservation; however, the terminology may be used interchangeably. 2 Gallon per capita per day (gpcd) calculations are based on the total treated water produced at the Water Treatment Facility for use by Water Utility customers (minus large contractual customers and other sales or exchange arrangements) divided by the estimated population of the Water Utility’s service area. 3 This goal represents an 8.5% reduction in water use compared to Fort Collins’ 2006-2010 average daily water use of 153 gpcd. It represents a 29% reduction in water use compared to Fort Collins’ pre-drought (1992-2001) average daily water use of 197 gpcd. 4 The peak daily demand is 2.5 times the average daily use water conservation goal and is based on historic ratios of average to peak daily use. 3 measures. Specific measures and programs are outlined in the Water Conservation Plan. The overall effectiveness of these measures and programs will be evaluated on a regular basis and if necessary, modifications will be made to increase effectiveness or to modify the City’s water use goal. An annual water conservation report will be prepared to describe the status and results of the various measures and programs. The Water Conservation Plan will be updated at a minimum of every seven years, as currently required by the State of Colorado. 1.3 Water Rate Structures The City will have stable water rate structures with transparent accountability for all classes of customers. The water rate structures will provide an economic incentive to use water efficiently while also providing sufficient revenue for operational and maintenance purposes. Examples of structures that may be utilized include 1) tiered rates 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. The City will annually review the effectiveness of its water rate structures as part of its financial analyses regarding Water Utility revenue, expenses and rates. Specific studies or changes to the rate structure may be made upon identification of the need to revise it. Any changes to the rate structure will require City Council approval. 1.4 Population Growth Population growth is an important factor in determining the City’s water supply needs, since increases in population generally increase the need for additional supplies. Population growth projections and associated water demand are mostly a function of land use planning, development densities, annexation and other growth related issues that can be affected by City Council decisions. The Water Utility will continue to work closely with the Current Planning Department, which provides population projections that may be effected by changes in City policies related to growth. 2.0 WATER SUPPLY RELIABILITY The City needs to meet future water demands in an efficient and reliable manner. Policy ENV 21.2 of Plan Fort Collins states, “Water supply reliability criteria will take into consideration potential effects of climate change and other vulnerabilities. Water supplies and related facilities shall be acquired or developed after careful consideration of social, economic and environmental factors.” One of the Water Utility’s primary objectives is to provide an adequate and reliable supply of water to its customers and other water users. Key principles that need to be considered when addressing water supply for municipal use include:  Providing water supply system reliability and flexibility  Considering a broad portfolio of resources that do not overly depend on any one source  Maintaining a water storage reserve for unforeseen circumstances  Maintaining water supply infrastructure and system security  Being a steward of the City’s water resources, which includes watershed management  Collaboration with the City’s regional water providers and users 4  Maintaining awareness of state, national and worldwide trends and adapting as needed to meet our customer needs  Promoting education, awareness and a culture of innovation among the Water Utility and others to enable creative responses to future water supply uncertainties 2.1 Water Supply Planning Criteria An integral component of the City’s water supply planning efforts is to maintain computer models that estimate the yield of its existing and future water supplies. The following water supply planning criteria are key parameters used in these models that provide a foundation for planning future supplies. 2.1.1 Planning Demand Level The reliability of the City’s water supply should be maintained to meet an average per capita demand level of 150 gpcd5,6. This planning level provides a value that is higher than the water use goal to address uncertainties inherent in water supply planning. It is important to have a planning number that can be used for development of long-range water supply facilities. Because water supply system infrastructure may take many years to permit and construct, it is desirable to use conservative assumptions to size facilities that may be needed for the long-term. A planning demand level should be larger than the water use goal, primarily because of the uncertainties related to projected water demands, yields from specific water rights, climate change and other unanticipated effects. 2.1.2 Drought Criterion The reliability and capacity of the City’s water supply system should be maintained to meet the planning level demand during at least a l-in-50 year drought event in the Cache la Poudre River Basin. Water rights should be acquired and facilities (including storage capacity) should be planned and constructed sufficiently ahead of the time to maintain the 1-in-50 year drought criterion, considering the time required to obtain water court decrees and permit and construct diversion, conveyance and/or storage facilities. In using this criterion, the City seeks to provide a balance among water supply reliability, the financial investment necessary to secure such reliability and the environmental impacts associated with water storage and diversions. 2.1.3 Storage Reserve Factor The City’s water supply planning criteria will include a storage reserve factor that equates to 20% of annual demand in storage through a 1-in-50 year drought7,8. This factor provides an 5 The 150 gpcd value is based upon the normalized 2006-2011 average daily use. 6 The average per capita demand planning level is used for facility planning purposes. Gallons per capita per day (gpcd) calculations are based on the total treated water produced at the Water Treatment Facility for use by Water Utility customers (minus large contractual customers and other sales or exchange arrangements) divided by the estimated population of the Water Utility’s service area. This number is multiplied by population projections developed by the City’s Planning Department to calculate future water demands. 7 For the Water Utility, 20% of annual demand is equivalent to around 3.7 months of average winter demand and about 1.5 months of average July demand. 5 additional layer of protection intended to address dimensions of risk outside of the other reliability criteria, including emergency situations (i.e. pipeline failure) and droughts that exceed a 1-in-50 year drought. 2.2 Climate Change Climate change could significantly impact the reliability of the City’s supplies and/or the amount of water required to maintain existing landscapes9; however, there is a great deal of uncertainty related to current climate change projections along the Colorado Front Range and its impact on municipal demands and water supply systems. The City’s planning criteria and assumptions are conservative in part to account for climate change based on the information to date. The City will continue to monitor climate change information and, if necessary, will revise its water supply planning criteria and assumptions to ensure future water supply reliability. 2.3 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 (i.e., greater than a 1-in-50 year drought) or because of disruptions in the raw water delivery system. When needed, the Water Supply Shortage Response Plan will be activated based on the projected water supply shortage. This plan will include measures to temporarily reduce water use through media campaigns, regulations, restrictions, rate adjustments and other measures. The plan may also include provisions to temporarily supplement the supply through interruptible water supply contracts, leases, exchanges and operational measures. Reducing the City’s water use during supply short situations may lessen adverse impacts to irrigated agriculture and flows in the Poudre River. The plan will be reviewed periodically and, if necessary, updated to reflect changes in the City’s water use and its water supply system. 2.4 Additional Supplies and Facilities In order to meet projected growth within the Water Utility’s service area, as well as maintain system reliability and operational flexibility, the City will need to increase the firm yield of its current water supply system. The following policy elements address ways of meeting these needs. 8 In meeting this factor, it is assumed that the City cannot rely on the existing Colorado-Big Thompson Project (CBT) carryover program. This program currently allows each CBT unit holder to carry over up to 20% of its CBT unit ownership in CBT reservoirs for use in the following year. However, this program has varied over the years and there is no guarantee that it will be continued in the future. 9 Current research indicates that changes in precipitation in this area are uncertain but that temperatures will increase and therefore it is likely that runoff will come earlier and in a shorter amount of time, precipitation may more often come as rain, and higher temperatures will increase outdoor demands and change growing seasons for existing landscapes. 6 2.4.1 Raw Water Requirements for New Development The City shall require developers to turn over water rights as approved by the City, or cash in- lieu-of water rights, such that supplies can be made available to meet or exceed the demands of the Water Utility’s treated water customers during a l-in-50 year drought. Cash collected shall be used to increase the firm yield and long-term reliability of the City’s supply system. Potential uses of cash include acquiring additional water rights, entering into water sharing arrangements with agricultural entities, purchasing or developing storage facilities and pursuing other actions toward developing a reliable water supply system. Consideration will be given to providing a diversified system that can withstand the annual variability inherent in both water demands and supplies. The balance between water rights being turned over and cash received by developers should be monitored and adjusted as needed to develop a reliable and effective system. 2.4.2 Acquisition and/or Sharing of Agricultural Water Supplies The City currently owns and will acquire additional water rights that are decreed only for agricultural use. The City will periodically need to change these water rights from agricultural use to municipal use to meet its water supply needs. The City will change those rights that come from areas upon which the City is growing, or from areas where the irrigation has ceased, when needed. For water rights that were derived from irrigated agricultural lands that remain in viable agricultural areas, the City will refrain from converting agricultural decrees to municipal use as long as other water supply options are available or other factors make it prudent to do so. The City will also work towards water sharing arrangements that provide water for municipal uses when critically needed and that allow for continued agricultural use of water at other times, in a manner that preserves irrigated agricultural lands over the long-term. 2.4.3 Facilities The City will pursue the acquisition or development of facilities that are needed to manage the City’s water rights in an efficient and effective manner and enhance the City’s ability to meet demands through at least a 1-in-50 year drought. These facilities may include storage capacity, diversion structures, pipelines or other conveyances, pumping equipment, or other facilities that increase the firm yield of the City’s supply system. Additional storage will be acquired or constructed considering 1) the City’s return flow obligations incurred from changes of water rights, 2) the City’s need to carryover water from wet years to dry years in order to meet its drought criteria, 3) operational flexibility, redundancy and reliability of the City’s water supply system, and 4) potential multiple-use benefits (i.e., environmental flows, recreational uses, etc.). The City will analyze the potential environmental impacts of developing storage along with other associated costs and benefits, and will develop that storage in a manner that avoids, minimizes or offsets the effects to the environment. Storage capacity 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, the development of aquifer storage, or some combination of the above. 7 3.0 TREATED AND RAW WATER QUALITY Policy ENV 21.1 of Plan Fort Collins states, “Develop and adhere to drinking water quality standards, treatment practices, and procedures that provide the highest level of health protection that can be realistically achieved.” In addition, the City will take an active role in protecting the quality of water in the various watersheds from which the City’s raw water is derived and maintaining the taste and quality of the City’s treated water. This may include mixing of the City’s source waters to maintain high water quality and require collaboration with private, county, state and federal land owners and managers. The acquisition, development, and management of the City’s raw and treated water will be consistent with the City’s Drinking Water Quality Policy and other applicable policies related to watershed protection and water treatment. 4.0 USE OF SURPLUS RAW WATER 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 the City’s raw water needs as well as other City raw water obligations. Raw water needs include use for such purposes as irrigation of City parks, golf courses, cemeteries and other greenbelt areas. Additional 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 applicable policies. Since the City plans its water supply system using a 1-in-50 year drought criterion, it typically has significant quantities of surplus raw water in many years. This surplus water may be available on a year-to- year basis or through multi-year arrangements that do not significantly impair the City’s ability to meet municipal demands. The City will continue to rent its surplus supplies at a fair market price that helps offset the cost of owning such supplies and benefits the Water Utility ratepayers. 4.1 Commitment to Other Beneficial Purposes Acknowledging that the City’s use of its valuable water resources has impacts to the environment and the region, the City will commit to using its surplus supplies for other beneficial purposes such as supporting irrigated agriculture, supplementing flows in the Poudre River or providing other regional benefits. The City’s surplus supplies come from a variety of sources, each of which has unique characteristics. These sources include CBT water and shares in several irrigation companies. Some sources are more suitable and available than others to meet beneficial purposes. Whether the surplus raw water can be used for these other purposes is dependent upon a number of factors, including the type of water, place of use and other decree limitations. Any potential use of these supplies should consider, and will likely require coordination with, other water users, state agencies and other groups. Some uses of the surplus supplies, such as maintaining an instream flow according to the State’s Instream Flow Program, may require a change of water rights through the water court process. The City will engage in a thorough evaluation of these issues as part of assessing the use of its surplus supplies for these beneficial purposes. 8 Utilities will evaluate implementing a program to allow voluntary contributions from its ratepayers (i.e., Utility bill “check-off box”) for programs that are designed to support the following purposes: preserving local agriculture, supplementing flows in the Poudre River, or meeting other beneficial purposes that our community may desire. 4.1.1 Agriculture and Open Space Policy SW 3.2 of Plan Fort Collins states, “Participate in and follow the Northern Colorado Regional Food System Assessment project and other Larimer County agricultural efforts, and implement their recommendations at a local level, if appropriate.” In addition, Policy LIV 44.1 of Plan Fort Collins states, “Maintain a system of publicly-owned open lands to protect the integrity of wildlife habitat and conservation sites, protect corridors between natural areas, conserve outstanding examples of Fort Collins' diverse natural heritage, and provide a broad range of opportunities for educational, interpretive, and recreational programs to meet community needs.” To the extent that surplus water is available, the City will continue to support the local agricultural economy and help preserve the associated open spaces by renting surplus agricultural water back to irrigators under the respective irrigation companies. The City will explore long-term rental and sharing arrangements with irrigators10 in order to support the regional food system, encourage agricultural open space and other benefits provided by irrigated agriculture, as well as benefit the Water Utility ratepayers. 4.1.2 Instream Flows Policy ENV 24.5 of Plan Fort Collins states, “Work to quantify and provide adequate instream flows to maintain the ecological functionality, and recreational and scenic values of the Cache la Poudre River through Fort Collins.” Recognizing that its water use depletes natural streamflows, the City will seek innovative opportunities to improve, beyond any associated minimum regulatory requirements, the ecological function of the streams and rivers affected by its diversions. The Water Utility will take a leadership role in working with other City departments, local and regional groups and agencies towards the following objectives in accordance with Colorado water law and the administration of water rights in Colorado: 1) encourage flows in local streams to protect the ecosystem, 2) pursue the operation of its water supplies and facilities in a manner that avoids, minimizes or offsets the effects to the environment while meeting customer demands, and 3) explore projects or measures that would provide flows in streams and water in reservoirs for recreational and aesthetic purposes. 4.1.3 Other Arrangements The City will consider and participate in other surplus water supply arrangements with other entities that provide mutual benefits and support the region. These may include other rental agreements, augmentation plans and other cooperative arrangements with regional partners. These types of arrangements should be limited to unique opportunities that are mutually 10 The City’s largest irrigation company ownership interest is in the North Poudre Irrigation Company, which still has substantial lands in irrigated agricultural production and has a unique mix of native water and CBT water that lends itself to these types of partnership arrangements. 9 beneficial to the parties and provide significant social, economic or environmental benefits to the region. 5.0 REGIONAL COOPERATION The City recognizes the importance in maintaining good relationships with regional entities and coordinating efforts to achieve mutual goals. The City also recognizes that growing Colorado municipalities are currently struggling to define a way to meet future water supply needs in a manner that minimizes negative impacts to agricultural economies and river ecosystems. The Water Utility will endeavor to be a leader in demonstrating how water supply can be provided in a manner that respects other interests and provides a culture of innovation. 5.1 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, sharing capacity and operating water transmission lines, distribution systems and storage reservoirs for greater mutual benefit. The City has common interests and the potential to cooperate with regional entities including the water districts around Fort Collins, the City of Greeley and the Northern Colorado Water Conservancy District, as well as other Colorado water providers. In particular, the City should work closely with water districts that serve Fort Collins residents to encourage similar policies regarding drought protection, conservation and to provide mutual assistance during emergencies. 5.2 Working with Local Irrigation Companies The City will continue to cooperate with local irrigation companies regarding the use, exchange and transfer 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. Much of the water supply available to the City is through the ownership of shares in local irrigation companies. 5.3 Working with Others City Departments will work together and also cooperate with local, state and federal agencies, civic organizations, environmental groups and other non-governmental organizations when common goals would benefit City residents and the surrounding community. Examples of goals that may involve City water supplies and be worthy of collaborative efforts include support for existing and development of new local food sources, promoting open space, improving river flows and supporting the local economy. Such efforts should identify appropriate entities and sources of revenue for specific goals or projects. changing these criteria were presented by staff, including the previous 162 GPCD and 15% SRF, 150 GPCD and 15% SRF and 140 GPCD and 20% SRF. After some discussion, the Water Board voted unanimously to revise the updated