HomeMy WebLinkAboutMemo - Mail Packet - 11/30/2021 - Memorandum From Donnie Dustin And Lance Smith Re: November 16, 2021 City Council Meeting Agenda Item #8F Second Reading Of Ordinance No. 151, 202, Amending Chapter 26 Of The Code Of The City Of Fort C
Utilities
electric · stormwater · wastewater · water
700 Wood Street
PO Box 580
Fort Collins, CO 80522
970.221.6700
970.221.6619 – fax
970.224.6003 – TDD
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: November 23, 2021
TO: Mayor Arndt and Councilmembers
FROM: Donnie Dustin, P.E., Water Resources Manager
Lance Smith, Utilities Strategic Finance Director
THROUGH: Kelly DiMartino, Interim City Manager
Theresa Connor, Interim Utilities Executive Director
RE: November 16, 2021 City Council Meeting Agenda Item #8F Second reading of
Ordinance No. 151, 202, Amending Chapter 26 of the Code of the City of Fort
Collins to Revise Miscellaneous Water Fees and Charges, Including the Water
Supply Requirement Fee.
At the November 16 City Council meeting, one Councilmember requested follow-up on item
#8F related to the Water Supply Requirement (“WSR”) fee. The question was why the read-
before memo indicated that a larger portion of the costs of the Halligan Water Supply Project
(“Halligan Project”) will need to come from existing ratepayers rather than from development.
The actual proportions of costs related to the Halligan Project will depend on a variety of factors
including both the final project costs (which are anticipated to increase over the current estimate)
and the amount and type of development that occurs within the Fort Collins Utilities water
service area. The read-before memo provided one estimate of the proportion of the costs that
would be paid by development of 43%; this estimate is based on the percentage of the total
increase in reliable firm yield expected to be met through WSR from new development. Another
approach and set of assumptions suggest a proportion of 54% instead; this approach is based on
the amount of revenues expected from the projected WSR. There is significant uncertainty when
planning for a 50-year time horizon and estimates of this proportion will continue to be adjusted
as we gain new information about costs and development.
If approved, the Halligan Project will enlarge Halligan Reservoir by approximately 8,200 acre-
feet to meet the demand of future Fort Collins Utilities' water customers and provide increased
reliability for existing customers to help protect against service interruptions related to prolonged
drought and emergencies. The project will help:
• Provide a storage reserve for emergency water supply
• Increase drought security
• Improve water system reliability and flexibility
• Meet most of the future water demands of the Fort Collins Utilities' water service area