HomeMy WebLinkAboutMemo - Mail Packet - 3/2/2021 - Memorandum From Meagan Smith Re: March 2, 2021 City Council Agenda Item 9 - Raw Water Rental Rates - Leadership Planning Team Question
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Utilities
electric · stormwater · wastewater · water
PO Box 580
Fort Collins, CO 80522
970.212.2900
V/TDD 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: February 24, 2021
TO: Mayor Troxell and Councilmembers
FROM: Meagan Smith, Water Resources Engineer
THROUGH: Darin Atteberry, City Manager
Theresa Connor, Interim Utilities Executive Director
RE: March 2, 2021 City Council Agenda Item 9: Raw Water Rental Rates
Leadership Planning Team Question
______________________________________________________________________________
Bottom Line
The proposed Fort Collins Utilities (Utilities) Rental Rates and Delivery Charges agenda item for
the March 2, 2021 City Council meeting is a routine item, scheduled for review every three
years.
This item is not directly connected to the proposed Montava Developer s augmentation water
agreement request that was recently discussed at the February 9, 2021 City Council work
session. However, under the current draft agreement, a delivery charge in the ordinance would
apply to Montava if City Council were to approve an augmentation water agreement with the
Montava Developer in the future.
Background
At the February 22, 2021 Leadership Planning Team (LPT) meeting, there was a question about
whether the March 2, 2021 City Council agenda item related to Utilities Raw Water Interests
has any connection or impact to the Montava proposal. The Rental Rates and Delivery Charges
item, which currently comes to City Council for review every three years, mostly applies to raw
water rentals Utilities makes available to the local agricultural community. It also covers rental
rates and delivery charges for the use of Utilities augmentation water and other sources (referred
to as fully consumable sources in the ordinance). These rates cover the cost of owning the
water, as well as operational costs of Utilities staff time and management of the related
infrastructure.
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If City Council were to approve an augmentation water agreement between Utilities and the
Montava Developer, as discussed at the February 9, 2021 City Council work session, the
delivery charge in the ordinance associated with the augmentation water would apply annually to
Montava s use of Utilities fully consumable supplies as indicated in the draft augmentation
agreement.
CC: Liesel Hans, Interim Utilities Deputy Director
Donnie Dustin, Water Resources Division Manager
Eric Potyondy, Assistant City Attorney