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HomeMy WebLinkAboutMemo - Mail Packet - 4/2/2024 - Memorandum From Alice Conovitz And Mariel Miller Re: Follow-Up To Feb. 13, 2024 Work Session: 2024 Water Efficiency Plan StatusUtilities 222 Laporte Ave. PO Box 580, Fort Collins, CO 80522 WORK SESSION MEMORANDUM Date: March 25, 2024 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager/Interim Utilities Executive Director Gretchen Stanford, Utilities Deputy Director Customer Connections From: Alice Conovitz, Utilities Water Conservation Specialist Mariel Miller, Utilities Water Conservation Manager Subject: Follow-up to Feb. 13, 2024 Work Session: 2024 Water Efficiency Plan Status BOTTOM LINE The purpose of this memo is to provide follow-up information in response to questions raised during the Feb. 13, 2024 Work Session on the 2024 Water Efficiency Plan (WEP). All Councilmembers were present with Councilmember Ohlson attending remotely. A summary of the discussion was documented in a Work Session Memorandum dated Feb. 19, 2024 with subject line, “February 13, 2024 Work Session Summary: 2024 Water Efficiency Plan Status”. The purpose was to describe the state-mandated Fort Collins Utilities (Utilities) WEP and the 2024 update process. The 2024 WEP will set conservation goals, incorporate extensive public engagement focusing on marginalized community members, and employ numeric modeling and an equity analysis to help prioritize future water conservation and efficiency strategies. Potential strategies include rate structures, education, voluntary incentives, regulations, and standards. The staff presentation and Agenda Item Summary also provided background on water conservation and efficiency and Utilities’ work to manage water demand to provide a reliable water supply. The following items, requested by Council, are addressed in this memo: 1. Per unit water residential water use by housing type. 2. Water Efficiency Plans for neighboring water providers. 3. Water use comparison to other communities. 4. Utilities water rate comparisons across customer types. 5. Water savings associated with xeriscape standards. ITEM #1 – PER UNIT RESIDENTIAL WATER USE BY HOUSING TYPE Average annual water use per unit is greatest for single-family customers, who used approximately 78,600 gallons per housing unit on average, as shown below on the plot. The amount of water use per unit is similar between duplex and multi-family customers, averaging approximately 46,300 gallons per unit and 44,400 gallons per unit, respectively. On an average per-unit basis, seasonal outdoor uses account for 49% of single-family residential water use, but DocuSign Envelope ID: D0367C25-3A86-4D4C-A9C0-D60623CA6968 only 33% for duplex and 21% for multi-family residential customers. These patterns reflect the generally higher amount of irrigated outdoor landscapes associated with single-family and duplex residential accounts0F1. Additionally, the average number of people per household (pph) varies across housing types, which primarily influences indoor use. We estimate the average occupancy per unit is 2.6 persons per household (pph) for single-family residential, 2.2 pph for duplex, and 1.6 pph for multi-family residential, based on analysis of 2021 U.S. Census Bureau data for the entire city of Fort Collins. ITEM #2 – WATER EFFICIENCY PLANS FOR NEIGHBHORING WATER PROVIDERS Within the city of Fort Collins’ growth management area, Utilities, East Larimer County (ELCO), and Fort Collins-Loveland Water District (FCLWD) each must submit water efficiency plans1F2. The following bullets summarize key information about these plans: • Utilities: Update is underway with intent to submit update to CWCB in late 2024. The current WEP was completed in 2015 and is available at https://www.fcgov.com/WEP o The current WEP sets a goal to reduce community-wide per capita water use to 130 gallons per capita per day by the year 2030; however, this goal is being re- evaluated. • ELCO: The latest WEP was updated in 2016 and is available at https://dnrweblink.state.co.us/CWCB/0/edoc/202185/ELCO_WEPlanUpdate2017.pdf?se archid=1914c118-df55-45bf-a6c6-0c2e1ad3c877 o ELCOS’s WEP set a goal to reduce treated water demands by 740 acre‐feet per year by 2035, as compared to predicted use based on passive water demand 1. For multi-family properties with large irrigated common areas, these may be billed at commercial rate codes. In 2023, annual water use was 21% lower than average for irrigation-only accounts, which includes commercial and residential common areas. 2. The Water Conservation Act of 2004 (HB04-1365) requires all retail water providers that sell 2,000 acre-feet or more annually to have a state-approved water efficiency plan. 0 20,000 40,000 60,000 80,000 Multi-family Duplex Single-family Ga l l o n s Average Annual Water Use per Unit (2019 -2023) Indoor Use Outdoor & Seasonal Uses DocuSign Envelope ID: D0367C25-3A86-4D4C-A9C0-D60623CA6968 management. • FCLWD: The latest WEP was submitted in 2023 and is available at https://fclwd.com/wp- content/uploads/2023/07/FCLWD-2023-Water-Efficiency-Plan-Update-for-Public- Review-1-1.pdf o FCLWD’s WEP set targeted water savings goals by customer class to lower the treated water demand by 10% over the ten-year planning period, or by approximately 1% per year. Other water efficiency planning documents can be found on individual websites or the searchable water conservation plan database (https://dnrweblink.state.co.us/CWCB/CustomSearch.aspx?SearchName=WaterConserverPlan Search&cr=1 ) hosted by the Colorado Water Conservation Board (CWCB), the state agency that reviews and approves WEPs. ITEM #3 – WATER USE COMPARISON TO OTHER COMMUNITIES Gallons per capital per day (GPCD) is a common metric used by water providers to evaluate water use independent of population growth. The calculation is typically done annually and can measure total, residential or commercial GPCD. Annual GPCD is calculated as: volume of annual water demand, divided by population served, divided by number of days in a year. GPCD is not typically weather-normalized, which means it will vary across years and climates. Even in areas with similar climates there is variability in the methodology used to calculate GPCD, making it challenging to use as a comparison tool between water providers. The variability or differences happen in the first two values of the equation – volume of water and population. Variations in how water providers define volume of water include total treated water, total billed consumption, total metered consumption, inclusion of untreated water, and inclusion/exclusion of large contractual deliveries to commercial customers. Population estimates can also vary based on data availability and population estimate methods. These inconsistencies all influence GPCD and should be considered when comparing GPCD between water providers. However, if using GPCD to compare, the best option is to use residential GPCD and highlight the differences in the data used. The final estimation of Utilities’ 2023 water demand is 122 GPCD (this is lower than the preliminary estimate presented at the Feb. 13, 2024 Council Work Session, which was initially estimated at 132 GPCD). This is a decrease of 12% from the 2022 demand of 139 GPCD. The drop in GPCD is due to a 123% increase in precipitation during irrigation months compared to prior years. Customers responded to the weather and reduced their outdoor use, but 2023’s low GPCD is not likely to persist during drier or hotter years. Staff researched others’ historical GPCD from current WEPs and discussed GPCD in more depth with three other water providers who responded to a request for more information. A few providers we researched and contacted are using GPCD as a performance metric or goal in their WEPs and many consider it a poor tool for comparison purposes, especially when commercial use is included. Some providers were reluctant to provide their numbers. The plots below present GPCD for residential use (upper plot) for those water providers and years that residential-only data was available, and total use (lower plot; total GPCD includes both residential and commercial use) for those that did not have residential data available. (For total DocuSign Envelope ID: D0367C25-3A86-4D4C-A9C0-D60623CA6968 GPCD, calculation variabilities include those described above, as well as the use of raw water, excluding large industrial water use from total GPCD and differences in the amount of commercial water use versus residential use – some communities have relatively very little commercial use.) 0 20 40 60 80 100 120 140 160 180 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total GPCD by Year (includes residential and commercial uses) Fort Collins Utilities Aurora Castle Rock 0 20 40 60 80 100 120 140 160 180 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Residential GPCD by Year (excludes commercial use) Fort Collins Utilities Fort Collins-Loveland Water District East Larimer Co Water District Westminster Greeley DocuSign Envelope ID: D0367C25-3A86-4D4C-A9C0-D60623CA6968 Staff recommends moving away from a GPCD goal in the updated WEP as a publicly facing metric, given its complexity and variability. It’s likely Utilities would continue to track GPCD internally to monitor for trends. A better goal or performance metric may be volume of water treated and/or metered, or volume of water reduced over a given period. A simplified volume- based metric, such as a reduction in total water use or estimated water savings, would align better to predicted and estimated water savings from conservation and efficiency strategies, which are also expressed as volumes. A simplified metric would minimize public confusion about what GPCD means and its nuances. ITEM #4 – UTILITIES WATER RATES COMPARISONS ACROSS CUSTOMER TYPES Utilities is committed to delivering safe, reliable and competitively priced services for all customers. Single-family and duplex water rates have a base charge and three tiers, with increasing costs-per-gallon as use goes up. Multi-family residential and commercial customers have lower rates in winter. Commercial rates are based, in part, on tap size. Current Utilities’ water rates for all customer types are available online at https://www.fcgov.com/utilities/img/site_specific/uploads/water-wastewater-and-stormwater- rates.pdf?1704235735.2F3 Utilities’ residential water rates are similar to, or lower than, neighboring municipalities, as shown in the following table: 2024 Residential Average Monthly Utility Bill Utility Electric Water Wastewater Stormwater Total Fort Collins Utilities $ 88.41 $ 53.04 $ 37.04 $ 23.09 $ 201.58 Longmont $ 82.56 $ 69.33 $ 41.33 $ 18.85 $ 212.07 Loveland $ 89.76 $ 61.16 $ 43.04 $ 24.88 $ 218.84 Greeley $ 100.63 $ 73.90 $ 36.99 $ 18.61 $ 230.13 Colorado Springs $ 99.92 $ 96.95 $ 30.53 n/a $ 227.40 Boulder $ 100.63 $ 66.72 $ 48.43 $ 27.10 $ 242.89 ELCO n/a $ 58.24 n/a n/a n/a FCLWD n/a $ 61.93 n/a n/a n/a ITEM #5 – WATER SAVINGS ASSOCIATED WITH XERISCAPE STANDARDS A well-managed landscape built with xeriscape principles – one of which is limiting turf – can yield significant water savings when compared to typical turf-heavy landscapes. Water use data for participants in the Utilities Xeriscape Incentive Program (XIP) show that limiting high-water turf reduced water use by an average of seven gallons per square foot per year for areas converted from turfgrass to xeriscape, or about 60% less water. 3 Detailed water rate information for FCLWD is available online at https://fclwd.com/support/rates-and-fees/. ELCO’s water rates are available at https://www.elcowater.org/rate-information. DocuSign Envelope ID: D0367C25-3A86-4D4C-A9C0-D60623CA6968 Turf replacement programs like XIP and development landscape standards reduce current and future water demands. Staff scheduled a hearing in May 2024 for code changes that propose new standards that prioritize water-wise landscapes. If adopted, these new standards would apply to commercial and multi-family development and redevelopment, which include large common areas like those maintained by homeowners’ associations. To reduce outdoor water demand, staff will propose that no more than 30% of the total landscaped area (not to exceed 10,000 square feet) in new and redeveloped commercial and multi-family properties be planted with high-water turfgrass species. Using the criteria of the proposed standard, staff analyzed property and water use data, and several development scenario assumptions. Staff estimate the proposed standard would save at least 53 million gallons annually on multi-family properties alone at GMA build-out compared to no turf limitations. If adopted, the portion of water savings associated with new and redevelopment in the Utilities water service area could help make progress towards a future WEP goal. Given the variability of business types and unpredictability of future development trends, non- residential commercial property water reduction estimates are more difficult to capture and therefore were not included. It is assumed that if the new standards are adopted, commercial landscapes would achieve a 60% reduction in future water use compared to water use trends seen with current landscapes. The Urban Landscape Conservation Task Force reiterates this challenge in their final report published in Jan. 2024, pointing out the many factors that make predicting water savings for regulations so difficult. Regardless, there is consensus amongst task force and water conservation professionals state and national that one effective way to reduce water use is to reduce new turf installation.3F4 City staff anticipate the water demand model that is being developed for the WEP update to be able to provide more comprehensive water demand estimates for this and other strategies. NEXT STEPS Staff will continue to work on the WEP update. Ongoing and upcoming actions include continuing engagement activities with the public and staff to inform the planning process and finalizing the water demand estimation model. A second Council Work Session is currently planned for July 9, 2024, to provide an update on the planning process and seek further direction. Attachments: 1. Work Session Memorandum: February 13, 2024 Work Session Summary: 2024 Water Efficiency Plan Status 2. Work Session Agenda Item Summary: 2024 Water Efficiency Plan Status 3. 2024 Urban Landscape Conservation Task Force Final Report CC: Gretchen Stanford, Utilities Deputy Director Customer Connections 4 2024 Urban Landscape Conservation Task Force Final Report DocuSign Envelope ID: D0367C25-3A86-4D4C-A9C0-D60623CA6968