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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/06/2018 - FIRST READING OF ORDINANCE NO. 038, 2018, ESTABLISAgenda Item 7 Item # 7 Page 1 AGENDA ITEM SUMMARY March 6, 2018 City Council STAFF Meagan Smith, Water Resources Engineer Donnie Dustin, Water Resources Manager Eric Potyondy, Legal SUBJECT First Reading of Ordinance No. 038, 2018, Establishing Rental Rates and Delivery Charges for Use of Water Available Under the City's Raw Water Interests for 2018 Through March 2021. EXECUTIVE SUMMARY The purpose of this item is to obtain City Council approval for the proposed formula-based and fixed rates and charges for rental and delivery of Utilities’ raw water supplies for three years: 2018, 2019, and 2020. This would be a change from the historical practice of having rates and charges approved for one year at a time. Staff has utilized the proposed formulas to set rates and charges since 2015. Staff is recommending a reduced rental rate of $400/acre-foot for fully consumable water (down from $600/acre-foot) to reflect market conditions and recognize Utilities’ increased availability of these supplies. The rates and charges would be effective through March 2021, to address the gap between the end of 2020 and anticipated Council approval of new rates and charges in early 2021. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION The City is a shareholder in several local ditch and reservoir companies and holds allotment contracts for the delivery of Colorado Big-Thompson Project (CBT) water. Utilities is responsible for most of these supplies. The main use for these raw water sources is in the treatment and delivery of potable water for the Utilities’ ratepayers. There are also delivery obligations under existing agreements to provide raw water shares for use by certain home owner associations (HOAs), the Poudre School District, and some City departments. After these treated and raw water demands have been met, in most years there is surplus water that can be rented first to other City departments (if needed) and then to non-City water users. Staff proposes two categories for pricing raw water. The first category - rental rates - is used to set prices for surplus raw water for use by non-City water users. Typically, there is demand for much of the City’s raw water rental sources and there are active rental markets. The second category - delivery charges - sets prices for sources where the Utilities has an on-going obligation to provide raw water that is used to irrigate some HOA greenbelts and Poudre School District fields, and some City parks and golf courses, as well as to deliver additional raw water to other City departments as needed. Historically, City Council has approved rental rates and delivery charges for the use of Utilities’ raw water each year after the ditch and reservoir companies have established their annual assessments and prior to the start of the irrigation season. Beginning in 2015, staff recommended and City Council approved, a formula-based approach to setting rental rates and delivery charges for all raw water sources except fully consumable supplies. The formulas are a function of the annual assessment for each ditch and reservoir company plus an Agenda Item 7 Item # 7 Page 2 administrative fee. Over the past three years, staff has received positive feedback from the rental community regarding this formula-based approach to rate setting. Staff is now proposing City Council adopt the formula-based approach to setting rental rates and delivery charges for three years. This would be a change from the historical practice of having rates and charges approved annually. The rates and charges will be effective through March 2021, to address the gap between the end of 2020 and anticipated Council approval of new rates and charges in early 2021. Setting the rates via formula captures any fluctuation in assessments, ensuring the City will recoup its costs for rented water without the need for annual approval. Moreover, establishing the rates and charges for a three-year period will reduce the administrative burden of the rental program while increasing the planning certainty for the City’s water rental community. The attached tables show proposed calculations for determining rental rates and delivery charges (Table 1), assessment rates as set by the irrigation companies (Table 2), and raw water rates charged by Utilities for 2016 and 2017 with proposed rates for 2018 (Table 3). Please note, the rates will change with any changing assessment rates in 2019 and 2020. ACTIVE RENTAL MARKETS FOR SURPLUS RAW WATER North Poudre Irrigation Company (NPIC) Rental Rates - Utilities expects to have surplus NPIC water available for rent. Each NPIC share has an agricultural (AG) component and a multiple use (MU) component. The volume of water for each component varies annually and is set in April by the NPIC Board of Directors based on the company’s water supply availability. Due to current legal constraints, the AG component can only be used on land served by the NPIC system and is rented to shareholders under that system. The MU portion of each NPIC share is available for Utilities' use and is largely comprised of NPIC-owned CBT water. When users in the NPIC system rent either AG or MU water, both components are delivered through the system in the same manner. Therefore, for rentals made into the NPIC system, it is proposed both types of water be rented at the same rate per acre-foot (AF). Beginning in 2015, a formula was used to set the raw water rental rate, incorporating the NPIC assessment and share allocation to ensure the cost of the NPIC assessment was fully paid by the renter. This same method is proposed for 2018 - 2020 and is defined below. The calculated rate will be rounded up to the nearest dollar, and will not be defined until after the allocation is made in mid-April. The rental rate will remain fixed until the assessment rate is defined for the next growing season. In some years there is a special class of NPIC water available for agricultural users for a very limited time early in the growing season. This Early AG water has a limited rental market and thus warrants a significantly lower rate. If Early AG water is available in 2018 - 2020, staff proposes a rental rate of $15/AF to reflect its limited use. Table 4 provides a possible range of calculated rental rates using the 2018 assessment of $220.00 with various potential allocations. Please note, rates will change with any assessment changes in 2019 and 2020. Procedures - If the total volume of rental requests is greater than the available surplus water, Utilities will use a proportionate allocation method based on the requester’s acreage, as has been done since 2008. This allocation method uses information provided by renters about their total land holdings served under the NPIC system. These requesting acreages are then added together and divided into the total volume of City-owned NPIC water available for rent in each year. This AF/acre ratio is then applied to each of the requesters’ land holdings to determine the maximum amount of rental water available for each requester. This allocation method was developed at the request of NPIC renters to provide some water to all requesters each year. Agenda Item 7 Item # 7 Page 3 Colorado Big Thompson Water (CBT) Rental Rate - Utilities receives CBT water through allotment contracts with the Northern Colorado Water Conservancy District (Northern) and through its ownership of NPIC shares. Utilities does not typically rent CBT water from its own allotment contracts with Northern, but when available, Utilities will rent CBT water available through its ownership of NPIC shares. Utilities holds some of the NPIC MU water for potentially high summer demands, then rents it to other (non-NPIC) renters later in the year if it was not needed. To use CBT water from its NPIC shares, the MU portion of the share is transferred as CBT water into the Utilities’ CBT account with Northern Water. Beginning in 2015, Northern instituted a transfer fee for this type of operation. The transfer fee is based on the CBT allocation, which varies from year to year. The 2017 fee for this transfer was $50.88/AF. Depending on the CBT quota, the fee for this transfer in 2018 will likely be closer to $60/AF. The assessed transfer fee is added to the cost of the rental (resulting in a rental price of $94.88/AF in 2017). Staff recommends rentals of CBT water be made at a rate equal to the calculated NPIC rate plus the cost of any transfer fees associated with the rental. Procedures - Utilities will first meet the CBT delivery obligations to City departments and other entities with delivery agreements. Surplus CBT water will then be offered to water users on ditches that run through town. These ditches, known collectively as the “Southside Ditches”, include the Arthur, New Mercer, Larimer No 2, and Warren Lake Reservoir. The Pleasant Valley Lake and Canal Company (PVLC) is also included in this tier. Surplus CBT water will next be made available to other Poudre Basin water users. Finally, in the event any surplus CBT water remains, it will be offered to others within the entire Northern District. Water Supply and Storage Company (WSSC) Rental Rates - Water Supply and Storage Company shares can only be rented to water users under that system. WSSC has an active rental market, and the recent historical rental rate of a WSSC share is $1,000 over assessment. It is recommended this method be used to calculate the WSSC share rental rate for 2018 through 2020. Procedures - Shares will be offered via lottery as in past years. Poudre Valley and Lake Canal Company (PVLC) and the Southside Ditches Rental Rates - The rental market for raw water from the Southside Ditches or PVLC is very limited, however Utilities can occasionally rent surplus water from these systems. Staff recommends the rate for these supplies be set at 120% of the assessment rate for each Ditch Company. Procedures - PVLC and Southside Ditch shares can only be rented to water users under each specific system. As the market for these supplies is limited, availability of shares to rent will be determined by Staff at the time the request is made. Fully Consumable Water Rental Rates - Utilities has occasional rental demand for fully consumable water to satisfy State requirements for substitute water supply and augmentation plans. Historically, Utilities has set the price for this water conservatively high relative to the market to avoid unnecessary demands on our limited fully consumable supplies. However, with ongoing operational experience at Rigden Reservoir, Utilities has increased its availability and flexibility of fully consumable supplies. Staff proposes setting the rental rate for these sources at $400/AF for three years. Based on inquiries with entities renting/leasing water with similar characteristics in Northern Colorado, this rate is in line with market conditions for short-term agreements for water for augmentation use (which is one common example of a fully consumable use). Procedures - Utilities staff will monitor reusable sources and determine availability for rental at the time the request is made. Agenda Item 7 Item # 7 Page 4 RAW WATER DELIVERY CHARGES PVLC and the Southside Ditches Delivery Charges This category sets charges for water delivered for use on City facilities, such as parks and golf courses, or water delivered for use by other entities having met the Utilities’ raw water requirement. Non-City entities with raw water delivery agreements are typically HOAs and the Poudre School District. It is proposed the delivery charges be set at 110% of each ditch and reservoir company per share annual assessment. This is to help offset administrative costs. Colorado-Big Thompson Water (CBT) This category sets charges for CBT water delivered for use at facilities which have met a raw water requirement, or for use by other City departments for irrigation purposes. In those instances, at its discretion, Utilities may utilize available supplies through its ownership in NPIC or through its allotment contracts with Northern Water. Staff recommends setting the rate for delivery of this CBT water equal to the NPIC rental rate plus any applicable NCWCD transfer fees. This rate will be utilized unless otherwise defined by agreement. Fully Consumable Water Delivery Charges Utilities has delivery obligations for reusable water where the Utilities’ raw water requirement has been met. For these obligations it is proposed to charge a fee of $120 per acre-foot to help offset operational and administrative costs. CITY FINANCIAL IMPACTS Revenue from the rental and delivery of raw water has averaged approximately $750,000/year over the last five years. These revenues can fluctuate significantly depending upon water supply conditions. Revenues generated by rentals helps off-set the annual cost to Utilities of raw water ownership. BOARD / COMMISSION RECOMMENDATION At its February 15, 2018 meeting, the Water Board unanimously recommended City Council adopt the proposed formula-based and fixed rates and charges for raw water rental and delivery. The Water Board is also supportive of fixing the formulas and fixed rates and charges as ongoing, with an annual review and report to the Board on market rates. PUBLIC OUTREACH Announcements were made at the NPIC and WSSC irrigation company annual meetings regarding the availability of rental water and the processes for making requests. ATTACHMENTS 1. Table 1 - Proposed Rental Rates and Delivery Charges (PDF) 2. Table 2 - Water Assessments (PDF) 3. Table 3 - Rental Rates and Delivery Charges (PDF) 4. Table 4 - Range of NPIC Rental Rates (PDF) 5. Water Board minutes, February 15, 2018 (draft) (PDF) Table 1 Proposed Rental Rates and Delivery Charges TYPE OF WATER RENTAL RATES/CHARGES SURPLUS RENTAL RATES NPIC – EARLY AG (PER AF) $ 15.00 NPIC – AG OR MU (PER AF) $ [Assessment / (MU+AG Allocation)] + 2.00 CBT (PER AF) $ Calculated NPIC rental rate + any Northern transfer fee WSSC (PER SHARE) $ Assessment + 1,000.00 ARTHUR IRRIGATION CO (PER SHARE) $ (120% of annual assessment) LARIMER COUNTY CANAL #2 (PER SHARE) $ (120% of annual assessment) NEW MERCER DITCH CO (PER SHARE) $ (120% of annual assessment) PLEASANT VALLEY & LAKE CANAL CO (PER SHARE) $ (120% of annual assessment) WARREN LAKE RESERVOIR CO (PER SHARE) $ (120% of annual assessment) SHERWOOD RESERVOIR CO (PER SHARE) $ (120% of annual assessment) SHERWOOD IRRIGATION CO (PER SHARE) $ (120% of annual assessment) FULLY CONSUMABLE (PER AF) $ 400.00 RAW WATER DELIVERY CHARGES CBT (PER AF) $ Calculated NPIC rental rate + any Northern transfer fee ARTHUR IRRIGATION CO (PER SHARE) $ (110% of annual assessment) LARIMER COUNTY CANAL #2 (PER SHARE) $ (110% of annual assessment) NEW MERCER DITCH CO (PER SHARE) $ (110% of annual assessment) PLEASANT VALLEY & LAKE CANAL CO (PER SHARE) $ (110% of annual assessment) WARREN LAKE RESERVOIR CO (PER SHARE) $ (110% of annual assessment) SHERWOOD RESERVOIR CO (PER SHARE) $ (110% of annual assessment) SHERWOOD IRRIGATION CO (PER SHARE) $ (110% of annual assessment) FULLY CONSUMABLE (PER AF) $ 120.00 Notes: (1) Rates may be adjusted to reflect the remaining yield or the prevalent market price of the water stock being rented. (2) The April allocation will be used to set the NPIC AG/MU price. (3) Rates and charges are rounded up to the nearest dollar. (4) The transfer fee charged on CBT rentals will be based on the quota at the time of the transfer. (5) The raw water delivery charge for CBT water may differ from above if otherwise defined in writing. ATTACHMENT 1 Table 2 Water Assessments 0BSOURCE 1B2015 2B2016 3B2017 4B2018 CBT (NCWCD, $/UNIT) 30.50 35.50 42.40 43.50 NORTH POUDRE IRRIGATION CO. ($/SH) 200.00 200.00 210.00 220.00 WATER SUPPLY & STORAGE CO. ($/SH) 2,900.00 2,900.00 3,000.00 3,000.00 ARTHUR IRRIGATION CO. ($/SH) 20.00 57.00 50.00 51.00 LARIMER COUNTY CANAL #2 ($/SH) 350.00 450.00 600.00 700.00 NEW MERCER ($/SH) 450.00 450.00 750.00 925.00 PLEASANT VALLEY & LAKE CANAL ($/SH) 185.00 185.00 190.00 504.00 WARREN LAKE ($/SH) 500.00 250.00 400.00 500.00 SHERWOOD RESERVOIR ($/SH) 160.00 57.00 57.00 57.00 SHERWOOD IRRIGATION ($/SH) 1,500.00 1,500.00 1,545.00 1,545.00 REUSABLE SOURCES ($/AF) n/a n/a n/a n/a ATTACHMENT 2 Table 3 Water Rental Rates and Delivery Charges SOURCE 2016 2017 2018 SURPLUS WATER RENTAL RATES CBT WATER ($/AF) 45.00 + Transfer fee 44.00 + Transfer fee NPIC rate +Transfer fee TRANSFER FEE – NPIC CBT TO CITY ($/AF) 49.14 50.88 Determined in April NPIC – EARLY AG ($/AF) 15.00 15.00 15.00 NPIC – AG OR MU ($/AF) 45.00 44.00 Determined in April WATER SUPPLY & STORAGE CO ($/SH) 3,900.00 4,000.00 4,000.00 ARTHUR IRRIGATION CO. ($/SH) n/a n/a 62.00 LARIMER COUNTY CANAL #2 ($/SH) n/a n/a 840.00 NEW MERCER ($/SH) n/a n/a 1,110.00 PLEASANT VALLEY & LAKE CANAL ($/SH) n/a n/a 605.00 WARREN LAKE ($/SH) n/a n/a 600.00 SHERWOOD RESERVOIR CO ($/SH) n/a n/a 69.00 SHERWOOD IRRIGATION CO ($/SH) n/a n/a 1,854.00 FULLY CONSUMABLE WATER ($/AF) 600.00 600.00 400.00 RAW WATER DELIVERY CHARGES CBT WATER ($/AF) n/a n/a NPIC rate +Transfer fee ARTHUR IRRIGATION CO ($/SH) 63.00 55.00 57.00 LARIMER COUNTY CANAL #2 ($/SH) 495.00 660.00 770.00 NEW MERCER ($/SH) 495.00 825.00 1,018.00 PLEASANT VALLEY & LAKE CANAL ($/SH) 204.00 209.00 555.00 WARREN LAKE ($/SH) 275.00 440.00 550.00 SHERWOOD RESERVOIR CO ($/SH) 63.00 63.00 63.00 SHERWOOD IRRIGATION CO ($/SH) 1,650.00 1,700.00 1,700.00 FULLY CONSUMABLE SOURCES ($/AF) 120.00 120.00 120.00 Notes: (1) Rates may be adjusted to reflect the remaining yield or the prevalent market price of the water stock being rented. (2) Charges for those who have satisfied the City’s raw water requirements are set at 110% of the assessments charged by that company. (3) The transfer fee charged on CBT rentals will be based on the quota at the time of the transfer. (4) The raw water delivery charge for CBT water may differ from above if otherwise defined in writing. Table 4 Range of NPIC Rental Rates NPIC Assessment ($/sh) 220.00 220.00 220.00 220.00 April Ag Allotment (AF/sh) 1.25 1.5 2.00 2.5 April MU Allotment (AF/sh) 2.25 2.5 2.75 3.0 Total April Allotment (AF/sh) 3.5 4.0 4.75 5.5 Assessment Cost ($/AF) 62.86 55.00 46.31 40.00 Administration Fee ($/AF) 2.00 2.00 2.00 2.00 Calculated Rental Rate ($/AF) 65.00 57.00 49.00 42.00 ATTACHMENT 4 Excerpt from the February 15, 2018 Water Board minutes: 2018 Raw Water Rental Rates and Delivery (Attachments available upon request) Water Resources Engineer Meagan Smith provided background information and an overview of the proposed 2018 rental rates and delivery charges. Topics included two pricing categories, typical rentals, delivery agreements, water types (early agricultural, agricultural, and multiple use), Rule 11 transfer fee, etc. The current process requires City Council approval annually and creates pricing uncertainty for the rental community. Staff proposes setting the formula-based and fixed rates and delivery charges for a three-year term: formula-based rate setting ensures City recoups costs, increases planning certainty for rental community, and reduces administrative burden to rental program. Ms. Smith asked for the Water Board’s feedback on the proposed changes. Discussion Highlights Board members commented on and inquired about various related topics including the possibility of promoting and actively soliciting water rentals because it generates revenue (staff indicated the priority is ensuring treated water customers receive the water they need, but promoting raw water rentals is a possibility in the future, although policy is to support agriculture and seek only to recover costs); rental revenue last year ($981,231); impact of proposed changes on water districts’ budgets; other options for reusable water; questions on the proposed $400 per acre-foot for fully consumable sources (down from the current $600) and whether staff could add language for the fee to be “$600 or less” based on an annual adjustment at the Utilities Executive Director’s discretion, to allow flexibility according to market conditions (staff will consult with City Attorney’s Office); a board member agreed the $400 reduced proposed free is reasonable and understood staff’s rationale. Motion: Chairperson Brett Bovee moved that Water Board recommends City Council adopt the proposed formulas and fixed rates for the raw water rental rates and delivery charges for a term of approximately three years through March 2021, as proposed by Utilities staff. Discussion on the Motion: A board member inquired whether it is necessary to limit the term to three years. Staff suggested providing information to the Water Board on an annual basis on market rates. Revised Motion: Chairperson Brett Bovee moved that Water Board recommends City Council adopt the proposed formulas and fixed rates for the raw water rental rates and delivery charges ongoing with an annual report to the Water Board and if Water Board suggested changes to the fully consumable rate. • Board Member Jim Kuiken seconded the motion. • Vote on the motion: It passed unanimously 7-0. ATTACHMENT 5 Staff Liaison/Water Resources and Treatment Operations Manager Carol Webb noted that staff is working with the board of North Poudre Irrigation Company (NPIC) to be less conservative with its allocations, because conservative allocations has resulted in NPIC giving away free water and therefore eliminating the possibility of recouping expenses. -1- ORDINANCE NO. 038, 2018 OF THE COUNCIL OF THE CITY OF FORT COLLINS ESTABLISHING RENTAL RATES AND DELIVERY CHARGES FOR USE OF WATER AVAILABLE UNDER THE CITY’S RAW WATER INTERESTS FOR 2018 THROUGH MARCH 2021 WHEREAS, the City holds title to or otherwise has ownership interests in various water rights, water right decrees, shares in ditch and reservoir companies (“shares”), and contractual rights to the delivery of water that are sources of supply of raw and untreated water (together, “Raw Water Interests”); and WHEREAS, the amount of water available under the City’s Raw Water Interests, at certain times, may be greater than the immediate needs of the City and its inhabitants, and is thus potentially available for use by persons outside of the City as a rental; and WHEREAS, the City has various agreements and understandings pursuant to which the City allows persons outside of the City and certain City departments to use water available under the City’s Raw Water Interests, provided that a charge for the delivery of such water is paid; and WHEREAS, pursuant to Article XII, Section 4 of the City Charter, if at any time the water supply is greater than the immediate needs of the City and its inhabitants, the City Council may authorize the City Manager to permit the use of such surplus water by consumers outside the City at such rates as the City Council may prescribe, provided that no vested right shall accrue under such permits; and WHEREAS, pursuant to Article XII, Section 6 of the City Charter, the City Council shall by ordinance from time to time fix, establish, maintain, and provide for the collection of such rates, fees, or charges for water furnished by the City as will produce revenues sufficient to pay the cost of operation and maintenance of the City’s utilities in good repair and working order and to provide and maintain an adequate working capital fund for the day-to-day business operations of the utilities; and WHEREAS, City staff has recommended rental rates and delivery charges for the use of water available under the City’s Raw Water Interests for a period of approximately three years, through March 2021, which the Water Board has also recommended; and WHEREAS, City Council finds that the rental rates and delivery charges set forth herein are appropriate and will provide revenues that offset the cost of operation and maintenance of the City’s Raw Water Interests and associated infrastructures and to keep the City’s utilities in good repair and working order and to provide and maintain an adequate working capital fund for the day-to-day business operations of the utilities. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: -2- Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. Section 2. That the City Manager and the Utilities Executive Director are hereby authorized to make water available under the City’s Raw Water Interests available for use by persons outside of the City and certain City departments, provided; that such water can be rented or delivered without adversely affecting the City; that no vested right shall accrue under such use; and that appropriate rental rate or delivery charge set forth herein is applied, which may be adjusted as the City Manager or the Utilities Executive Director determine necessary to reflect the remaining yield for the prevalent market price of the water or shares being rented in order to prevent undue economic loss to the City; and that the final price may be rounded up to the nearest dollar. Section 3. That the City Manager and the Utilities Executive Director are hereby further authorized: to impose on such rentals and deliveries such additional terms and conditions as they deem appropriate to protects the interests of the City in and to the City’s Raw Water Interests; and to deny any request for a rental or delivery, to the extent allowed by law, as they deem appropriate to further the interests, policies, and values of the City. Section 4. That all previous authorizations to make water available under the City’s Raw Water Interests are repealed in their entirety. Section 5. That the rental rates set forth in the table below are hereby approved as the City’s rental rates for 2018 through March 2021, provided that the rental rate for fully consumable water shall apply through March 2021. RATES FOR RENTALS OF SURPLUS RAW WATER Type of Water Rate Per Acre Foot Arthur Irrigation Company 120% of Annual Assessment Colorado-Big Thompson Water from the Northern Colorado Water Conservancy District (NCWCD) associated with Shares in the North Poudre Irrigation Company Rental Rate for North Poudre Irrigation Company (Seasonal Agricultural and Multiple Use Water) + any NCWCD transfer fees calculated at the time of transfer Larimer County Canal No. 2 Irrigating Company 120% of Annual Assessment New Mercer Ditch Company 120% of Annual Assessment North Poudre Irrigation Company: Early Agricultural Use Water $15.00 per acre foot North Poudre Irrigation Company: Seasonal Agricultural and Multiple Use Water (Annual Assessment / (Sum of Allocation of Seasonal Agricultural Use and Multiple Use Water per share)) + $2.00 per acre foot Pleasant Valley and Lake Canal Company 120% of Annual Assessment Fully Consumable Sources $400.00 per acre foot Sherwood Reservoir Company 120% of Annual Assessment Sherwood Irrigation Company 120% of Annual Assessment Warren Lake Reservoir Company 120% of Annual Assessment -3- Type of Water Rate Per Share Water Supply and Storage Company Annual Assessment + $1,000.00 share Section 6. That the delivery charges set forth in the table below are hereby approved as the City’s delivery charges for 2018 through March 2021. RAW WATER DELIVERY CHARGES Type of Water Rate Per Share Arthur Irrigation Company 110% of Annual Assessment Colorado-Big Thompson Water from the Northern Colorado Water Conservancy District Rental Rate for North Poudre Irrigation Company (Seasonal Agricultural and Multiple Use Water) + any NCWCD transfer fees calculated at the time of transfer Larimer County Canal No. 2 Irrigating Company 110% of Annual Assessment New Mercer Ditch Company 110% of Annual Assessment Pleasant Valley and Lake Canal Company 110% of Annual Assessment Sherwood Reservoir Company 110% of Annual Assessment Sherwood Irrigation Company 110% of Annual Assessment Warren Lake Reservoir Company 110% of Annual Assessment Type of Water Rate Per Acre Foot Fully Consumable Sources $120.00 per acre foot Introduced, considered favorably on first reading, and ordered published this 6th day of March, A.D. 2018, and to be presented for final passage on the 20th day of March, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 20th day of March, A.D. 2018. __________________________________ Mayor ATTEST: _______________________________ City Clerk ATTACHMENT 3