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HomeMy WebLinkAboutMemo - Mail Packet - 04/22/2025 - Memorandum from Alice Conovitz re Feb. 25, 2025 Work Session Follow-up: 2025 Fort Collins Utilities Water Efficiency Plan UpdateUtilities 222 Laporte Ave. PO Box 580, Fort Collins, CO 80522 aconovitz@fcgov.com CC: Mariel Miller, Jill Oropeza, Eric Potyondy WORK SESSION MEMORANDUM Date: April 14, 2025 To: Mayor and City Councilmembers Through: Kelly DiMartino, City Manager Tyler Marr, Deputy City Manager Nicole Poncelet-Johnson, One Water Executive Director From: Alice Conovitz, Water Conservation Specialist Subject: Feb. 25, 2025 Work Session Follow-up: 2025 Fort Collins Utilities Water Efficiency Plan Update BOTTOM LINE The purpose of this memo is to provide follow-up information in response to questions raised during the Feb. 25, 2025 Work Session on the 2025 Water Efficiency Plan (WEP). A summary of the discussion was documented in a Work Session Memorandum dated March 4, 2025 with subject line, “Feb. 25, 2025 Work Session Summary: 2025 Fort Collins Utilities Water Efficiency Plan Update”. The background section describes changes to the proposed goals in the draft WEP made following the Feb. 25 Council Work Session. Additionally, the following items, requested by Council, are addressed in this memo: 1. For Goal 1, provide examples of how the 4% reduction works year-to-year and over time. 2. For Goal 1, clarify the City’s responsibility and reduction target to contribute to the overall percent reduction. 3. Provide additional detail on projects to lower City water use. Provide more information about the estimated cost of projects and potential funding sources. 4. Provide more information about how water overuse can be identified for residential and commercial customers. BACKGROUND The WEP guides the work of the Water Conservation Division1, One Water Utilities (Utilities), and the greater City organization as it pertains to water demand management through long- 1 The Utilities Water Conservation Division conducts water demand management to extend water supplies through conservation and efficiency activities that reduce water demands and lower losses and inefficiencies. Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 term efficiency2. The draft WEP proposes to set two goals intended to lower water demand, minimize the frequency and magnitude of future water shortages, and build long-term landscape resilience. These goals reflect community feedback, staff input, and a commitment to act now to prepare for a hotter and more variable climate. Staff revised the proposed goals following the Feb. 25, 2025 Council Work Session in response to Council’s and Water Commission’s recent feedback and ongoing analysis of water demand and potential savings. The revisions include increasing the Goal 1 target from a 3% reduction to a 4% reduction and setting specific targets that support the broader goals. The revised proposed WEP goals are: Goal 1: Reach 4% annual reduction in water use by 2040 to reduce risk of shortages. The WEP will set an overall water conservation goal that applies to all treated indoor and outdoor water use within Utilities’ water service area (Attachment 1), including both customer and City water use. The objectives of this overall goal are to gradually lower demand to minimize the frequency and magnitude of shortages, expand access to efficiency opportunities, lead by example as a City organization, and offset increasing demands driven by climate change. Staff anticipate this amount of savings could offset increasing demands driven by a temperature increase of about 1°F between now and 2040. Goal 1 incorporates three specific targets, which are discussed in more detail in Item #1 below:  Target 1.1: By 2040, lower overall annual treated water use by 320 million gallons (MG), or 980 acre-feet (AF) below projected water use o Every year, take actions to keep total treated water use lower than it is projected to be without active efficiency strategies, ramping up to being 4% lower than projected by 2040. Looking ahead to 2040, a 4% reduction would mean that actual demand was about 320 million gallons (MG), or 980 acre-feet (AF), lower than projected for the year. o Interim reduction targets will gradually ramp up annual savings between now and 2040, as shown on Figure 1: - By 2030: 3% reduction, estimated at 210 MG (640 AF) below projected water use - 2035: 3.5% reduction, estimated at 260 MG (800 AF) below projected water use - Reductions in treated water demand by Utilities customers, including City water accounts, will contribute to this target  Target 1.2: Double the volume of savings from efficiency strategies by 2040, relative to 2020-2024 average performance o To reach the Target 1.1 savings of 320 MG below projected annual water use by 2040, the Water Conservation Division will increase program offerings and 2 For simplicity and consistency with state terminology, the term “efficiency” is used throughout this document to refer to both behavioral and technology-based water demand management; however, in practice, efficiency generally refers to technology-based solutions (e.g., a high-efficiency showerhead), while conservation focuses on behaviors (e.g., choosing to take a shorter shower). Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 participation to increase savings over the current annual average of 155 MG below projected annual water use. Quantifiable treated water savings from efficiency strategies that serve customers, as well as partnerships with City departments to lower City treated water use, will count toward this target.  Target 1.3: Lower treated water use at City properties by a total cumulative volume of 5 MG by 2040 o This target will achieve average annual reductions of 360,000 gallons per year by 2040 for City properties, adding up to 5 MG below projected annual water use in total water savings between 2026-2040. o This savings is expected to come from a variety of projects lowering indoor and outdoor treated water demand in City buildings and properties. Strategies with ongoing year-after-year savings, such as plumbing or turf replacement, will be prioritized. Progress toward Goal 1 will be evaluated based on tracking treated water demand by customer sector, including City properties, as well as Water Conservation Division program participation and savings. Goal 2: Improve water efficiency and build resilience on City-owned landscapes, to benefit the community and environment. For the first time, the WEP will set a goal directed at the City’s outdoor water use, which encompasses both treated and raw water and properties both inside and outside of Utilities’ water service area. Community feedback shows a widespread desire for the City to take responsibility and action related to efficient water use. Beneficial outcomes for actions on City- owned landscapes include contributing to the overall water efficiency (Goal 1) by lowering municipal water use, building resiliency in our public landscapes to prepare for a hotter future, prioritizing water use for spaces that most benefit the community, and creating highly-visible projects that inspire water-saving actions by individuals and businesses in our community. Goal 2 incorporates one specific target: Target 2.1: The City will implement at least 1 new water-saving project in each 2-year municipal budget cycle, for at least 7 new projects on City landscapes by 2040. o Projects that lower treated or raw water use and/or build landscape resilience on City-owned properties within the Fort Collins growth management area will count toward this target; this approach reflects the City’s intention to lead by example and benefit the entire community regardless of water source or provider. o Landscape projects that lower treated water use on City-owned properties that are within Utilities water service area will also count toward Goal 1 targets. Progress toward Goal 2 will be evaluated based on the number of projects, associated water savings, and total project area completed each year. Project examples are discussed in Item #3 below. The next WEP update is expected in 2032 based on the 7-year renewal cycle set by the state. This provides an opportunity to evaluate and update goals and strategies based on changing conditions. Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 ITEM #1 – EXAMPLES OF HOW GOAL 1, ANNUAL WATER DEMAND REDUCTION TARGET OF 4%, WORKS YEAR-TO-YEAR AND OVER TIME Goal 1 is focused on lowering Utilities’ annual total treated water demand by 4% by 2040. The intention is to lower overall customer demand by a meaningful amount each year, which lowers the risk of shortages, while sustaining the beneficial uses of water that will continue year-to-year across our service area. This approach acknowledges that overall demand is likely to increase over time due to growth and climate change, even with increased efficiency actions and savings as seen in Figure 1. To evaluate progress toward Goal 1, staff will annually track overall treated water demand for Utilities’ customers (Target 1.1) and estimated water savings from efficiency strategies implemented by the Water Conservation Division (Target 1.2). This item provides additional detail about how Targets 1.1 and 1.2 will be implemented and tracked over time. Target 1.3, lowering treated water demand associated with City water accounts, is discussed in Item #2 of this memorandum. Target 1.1: By 2040, lower overall annual treated water use by 320 MG or 980 AF below projected annual water use The volume of savings associated with the 4% goal is determined based on projected demands for Utilities’ customers (excluding certain contractual and wholesale deliveries) under a range of future growth and climate scenarios. Because demands vary year-to-year, for a specific percent reduction target (i.e., 4%) the volume (millions of gallons) of savings would go up or down based on variability in consumption. Staff estimate that a 4% reduction in 2040 demand is estimated to require 280-355 MG (860-1,090 AF) of efficiency savings, which reflects the range of estimated 2040 demands driven by different climate and growth scenarios. The 320 MG target represents a moderate growth and climate change scenario within that range. To illustrate this concept, Figure 1 presents recent historical customer treated water use (solid blue line) and the projected range of future customer water demands under different climate and growth scenarios without demand management (dashed blue lines). The green shading represents how the projected customer demands could be lowered if we meet Goal 1. To gradually progress to the final 2040 goal, interim annual targets will be tracked from 2026-2040. The green diamonds on Figure 1 represent average efficiency savings from interim (shown in 5- year increments) and final Goal 1 targets. It is important to note that the annual percent reduction targets do not compound year-to-year and will not put Utilities on a track to zero water use in the future. Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 Figure 1. Water Efficiency Plan Goal 1 interim targets and final 2040 goal. Figure note: Historical water use and projections include customer demands and non-revenue losses, and exclude wholesale and contractual obligations. Target 1.2: Double the volume of savings from efficiency strategies by 2040, relative to 2020-2024 average performance Annual efficiency savings tracked for this target include the water savings estimated for new actions implemented in a given year. This is a conservative approach that avoids over- estimating impacts that can vary year-to-year due to changing individual behaviors. However, many efficiency actions have ongoing savings that can continue for years (e.g., installing an efficient toilet or replacing turf with a xeric landscape)3. Figure 2 illustrates this concept by showing recent historical demands (solid blue bars) and savings (solid orange bars), along with projected future demands (hashed bars) and Goal 1 targeted water savings (red bars) under a single possible future demand scenario of moderate growth and climate change impacts. Measurable Water Conservation Division strategy savings averaged 155 MG (475 AF) and 2.3% of total annual demand from 2020-2024. Achieving Goal 1 with a 4% reduction of projected annual demand under this moderate scenario is expected to 3 Other efficiency actions such as education, outreach, and marketing, as well as external influences including statewide regulations and passive savings from new techno logies, are difficult to quantify in savings estimates but are important strategies that help Utilities manage overall water demand despite upward pressures from climate change and growth. 3% 3.5% 4% 9,200 13,200 17,200 21,200 25,200 3,000 5,000 7,000 9,000 20 1 5 20 2 0 20 2 5 20 3 0 20 3 5 20 4 0 20 4 5 20 5 0 Ac r e -Fe e t Mi l l i o n G a l l o n s Historic demand Projected demand range, without additional efficiency Goal 1 interim and final targets Projected demand range, with Goal 1 reductions Range of projected demands with successful attainment of Goal 1 Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 require 320 MG (980 AF) of efficiency savings in 2040. This challenges the Water Conservation Division to increase measured savings by about two times over current average performance over the next 14 years. *This chart shows the 2020 efficiency savings of 130 MG. In that year, an additional 105 MG reduction resulted from 30 days of mandatory restrictions due to an infrastructure project and wildfire. Figure 2. Measured water demand and efficiency savings (2020-2024) shown with projected (2030-2040) demand under moderate future growth and climate conditions with Goal 1 interim and final targets (for Utilities customers, excludes wholesale and unique large contractual deliveries). Goal 1 Examples To implement Goal 1, every year staff will (1) set a working savings target based on projected demands and the targets, then (2) evaluate actual performance at the end of the year based on actual demand, population, and climate conditions. Hypothetical examples showing how Goal 1 would be implemented and evaluated in 2032, which has a 3% reduction target based on the interim goals, are presented in Table 1 and as follows:  Normal year: If the Utilities’ projected demand for 2032 is 7,200 MG, the working target for that year would be to reduce demand by 3%, or 220 MG. At the end of the year, if weather conditions were normal and customers used 6,980 MG or less, the goal would be met and no weather normalization methods would need to be applied.  Hot year: The Utilities’ projected demand for 2032 is 7,200 MG and the working target for that year is to reduce demand by 3%, or 220 MG. Due to hotter-than-normal conditions, customers ended up using 7,600 MG. To evaluate if a 3% reduction target was achieved, staff normalized for weather by adjusting the projected demand to 7,800 1.9%*2.3%2.5% 2.1% 2.5%3.0%3.5%4.0% 0 6,000 12,000 18,000 24,000 0 2,000 4,000 6,000 8,000 2020 2021 2022 2023 2024 2030 2035 2040 Ac r e -Fe e t Mi l l i o n G a l l o n s Treated Water Demand Measured Conservation Savings Projected Treated Water Demand Targeted Conservation Savings * This chart shows the 2020 efficiency program savings of 130. In that year, an additional 105 MG reduction resulted from 30 days of mandatory restrictions due to an infrastructure project & wildfire. Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 MG, an expected demand for the weather conditions, and the 3% target would then be 230 MG. If customers used 7,570 MG or less, the 3% reduction target would still be met. The same weather normalization would be done to evaluate progress toward Goal 1 if there was wetter/cooler than normal conditions. Normal Hot, Dry Cool, Wet Step 1 - Set working target based on historic normal weather and WEP goal Projected Treated Water Demand (MG) 7,200 7,200 7,200 (Based on historical normal weather and previous year population) Initial Savings Target (MG) 220 220 220 (3% Reduction × Projected Demand) Step 2 - Evaluate success based on actual conditions and WEP goal Actual Treated Water Demand (MG) 6,900 7,500 6,400 Normalized Treated Water Demand (MG) 7,200 7,800 6,500 (Weather normalized and current year population) End-of-Year Savings Target (MG) 220 230 200 (3% Reduction × Normalized Demand) End-of-Year Savings Achieved for 2032 (MG) 300 300 100 (Normalized Demand - Actual Demand) Was 3% Reduction Target Achieved? Yes Yes No (Is the end-of-year savings greater than the end-of-year savings target?) ITEM #2 – ADDITIONAL INFORMATION ABOUT CITY WATER USE TARGETS RELATIVE TO THE 4% REDUCTION IN GOAL 1 To support Goal 1 (overall treated water savings) and set a clear quantified target directed at lowering City water use, staff set Target 1.3: Lower treated water use at City properties by 5 MG by 2040. This treated water savings would be achieved through the cumulative impact of projects completed from 2026-2040 that lower treated water use in City buildings or on City landscapes within the Utilities service area. Although the savings will vary year-to-year depending on the size and scope of completed projects, over the 14-year implementation period projects are expected to achieve average annual reductions of 360,000 gallons per year, adding up to 5 MG by 2040. Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 Staff will prioritize projects that involve durable water savings that persist over time, such as efficiency upgrades to plumbing fixtures, irrigation equipment, or pipeline repair. Examples of City projects are provided in Item #3. City properties in the Utilities service area used an average of 100 MGY (310 AFY) from 2020- 2024, about 1.8% of the total treated water demand from all customers. This water supports multiple important community benefits including buildings, pools and recreation facilities, and irrigation of parks, streetscapes, and landscapes around City buildings. Target 1.3 challenges City departments to achieve new water savings in addition to the ongoing efficiency best practices already regularly implemented by staff. The City also uses:  About 978 MG (3,000 AF) of raw water to irrigate Fort Collins' parks, golf courses, cemeteries, and other green belt areas.  Treated water at City-owned properties in the East Larimer County and Fort Collins- Loveland Water Districts water service areas. These water uses are not included in strategies for Goal 1, which focuses on treated water use in the Utilities service area but are considered in strategies to meet Goal 2, which includes all City water use regardless of source or location. ITEM #3 – ADDITIONAL INFORMATION ABOUT CITY STRATEGIES TO MEET WEP GOALS 1 AND 2 Through collaborative cross-departmental meetings, staff identified strategies to lower treated water demand and build landscape resilience on City properties and infrastructure. Many of the strategies align with planned or ongoing work. In addition, there are new and existing funding opportunities for projects including the 2050 tax, about $50,000 from Water Conservation’s ongoing budget (limited to use on treated water in Utilities service area), and external grants. (Grants offered by the Colorado Water Conservation Board are regularly available and are not impacted by federal decisions.) Examples of a variety of strategies, both large and small, to lower City water use and build resilience on City landscapes are shown in the following table. (Note that some of the strategies listed below are planned projects, while others are areas of opportunity that will be pursued. Additionally, this is not a comprehensive list and additional opportunities will continue to be evaluated through cross-departmental collaboration.): City Project Example Description Water Savings Potential for 1 year of Implementatio n Anticipated Cost Range Potential Funding Sources Landings Park irrigation and turf replacement Planned project to lower outdoor treated water use and build landscape resilience through About 550,000 gallons Design and community outreach: $65,000 (General  Water Conservation funds allocated to City projects: Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 irrigation system efficiency upgrades and converting turf to low-water landscape. Landings Park requires over 3.5 MGY of treated water to irrigate 309,000 square feet (7.1 acres). The 2019 Parks Irrigation Master Plan identified Landings Park as a high priority for infrastructure replacement. Fund allocation in 2024) Installation anticipated to range from $800,000- $1 million up to $50,000 annually  Nature in the City grants  Municipal Innovation Fund: up to $30,000  General Fund  2050 tax  External grants Native plant demonstration garden at the Farm at Lee Martinez Park Planned project to promote landscape resilience through demonstrating use of native and xeric plants and alternative lawns. Landscape resilience Nature in the City project cost typically range from $5,000- >$50,000 depending on scope and scale  Nature in the City grants  Water Conservation funds allocated to City projects: up to $50,000 annually City Hall turf replacement near parking lots Possible project to lower outdoor treated water use and build landscape resilience in a highly visible location, and adjacent to the Xeriscape Demonstration Gardens, through irrigation system efficiency upgrades and converting 7,500 sq. ft. of turf to low-water landscape. About 30,000 gallons Volunteer- based approach: Installation $23,000; annual maintenance $1,700 Contractor- based approach: Installation $40,000 – 80,000; annual maintenance  Water Conservation funds allocated to City projects: up to $50,000 annually  Nature in the City grants  Municipal Innovation Fund: up to $30,000  External grants Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 . $1,500- $6,400 35 toilet replacements in City buildings Possible projects to lower indoor treated water use by replacing less- efficient toilets and urinals with modern, high-efficiency units. 400,000 gallons $20,000- $40,000  Water Conservation funds allocated to City projects: up to $50,000 annually  Water Conservation rebates: o Toilets: up to $100 per toilet o Custom: $1,000- 25,000  Municipal Innovation Fund: up to $30,000  External grants Water main line repair and replacement Opportunity to increase current pace of line repair and replacement to lower distribution system water losses and main line breaks. - Current water line replacement rate is about 0.3%, or 2.5 linear miles, per year. Goal is 1% (5 linear miles). - Water leaks from the Utilities distribution system exceed 80 MGY, based About 700,000- 1,400,000 gallons $3,000,000 $5,000,000 (Budget allocation for 2025 for ongoing asset management)  Capital Improvement Project funds Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 on water loss audits. Dedicated tree irrigation Possible projects to support tree health and canopy by installing dedicated irrigation to trees that does not depend on overhead irrigation of the surrounding turf grass. This ensures trees can be watered during shortages, even if restrictions limit turf irrigation. Landscape resilience For some projects, water savings are possible because drip systems direct irrigation to tree root zones and minimize water waste. About $20,000- $50,000 per project (cost varies based on location and size)  Water Conservation funds allocated to City projects: up to $50,000 annually  External grants Staff will progressively introduce new strategies over the coming years to increase water savings, align with staff capacity, and allow time for planning and pursuit of approval and funding (when necessary). Of course, project opportunities may not always align with this cadence, and we expect periods of time when there are more or fewer projects than one every two-year budget cycle. There are many competing City priorities and staff developed the proposal to be ambitious but reasonable. Figure 3 presents a conceptual implementation timeline. Figure 3. Conceptual implementation timeline for WEP goals and strategies. ITEM #4 – METHODS TO IDENTIFY WATER OVERUSE 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Continue Existing Strategies Plan & Start New Strategies Track Progress & Adjust Strategies 4% 320 MG (980 AF) Interim and Final Goal 2 Targets: At least 1 new City landscape resilience project with every 2-year budget cycle 7+ projects completed Update Water Efficiency Plan (7-year renewal cycle) Interim and Final Goal 1 Targets: Progress to lowering projected annual demand by 4% 2040 Water Efficiency Milestones 3.5% 260 MG (800 AF) 3% 210 MG (640 AF) 2.3% - 3% > 155 MG (> 480 AF) Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 Utilities provides water customers with a variety of tools to understand their water use relative to typical or recommended levels. Customers can use these data to improve their water literacy and support decision-making. Staff can use these data to identify opportunities for focused programming and marketing to connect with customers who have higher than expected use. The following are examples of existing behavior-based strategies, all enabled by the MyWater (or WaterSmart, owned by VertexOne) software platform:  Residential water budgets – Monthly water budgets based on occupancy, irrigable area, and historical use patterns intended to help single-unit and duplex customers understand and manage their water use. Residential water budgets are managed and distributed through the MyWater data portal.  Continuous consumption (i.e., leaks) and high use notifications – This program notifies customers who have hourly water usage for 24 hours (potential leaks) or unusually high use relative to their normal patterns. The system contacts customers by email, text, or letter to alert them to the continuous consumption or high use.  Water reports – Utilities sends these reports to approximately 29,000 residential and commercial water customers via email (or paper if requested or no email is provided). For residential reports, they include customized comparisons of each customer’s water use relative to a cohort of customers with similar attributes such as number of occupants in the home and yard size. Commercial customers are compared to their own historical use. Specifics about residential water reports are addressed in the memorandum to Council dated April 10, 2025, with subject, “Utilities Behavioral Energy and Water Efficiency Strategies Overview.” The water reports discussed during the Work Session will be part of a larger effort that includes more information about how both reports (water and energy) will be integrated into the larger VertexOne Customer Information System launch, slated in Q4 2025. Ongoing updates to Council will be provided by staff involved in this project, including a Council Work Session planned for later in 2025. Through the WEP update process, staff identified an efficiency strategy opportunity to build out the water portion of the behavior-based Building Energy and Water Scoring program:  Commercial water use benchmarking – Water use benchmarks are standards or reference points used to measure and compare water consumption levels. They help set goals for water efficiency and identify areas for improvement. Establishing water use benchmarks for indoor and outdoor consumption can drive efficiency efforts. A public- facing website would track and report water use for multi-unit housing and commercial buildings to promote transparency and accountability. City buildings would be used to pilot this strategy before rolling it out to the public. Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373 ATTACHMENT 1 – WATER PROVIDERS MAP Docusign Envelope ID: EA62BBAC-9859-439B-A743-84ECE843A373