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HomeMy WebLinkAboutMemo - Mail Packet - 2/28/2017 - Memorandum From Donnie Dustin, Carol Webb And Lance Smith Re: February 14, 2017 Work Session Summary - Changes To The Utilities Raw Water RequirementsUtilities 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: February 17, 2017 TO: Mayor Troxell and City Councilmembers THRU: Darin Atteberry, City Manager Kevin R. Gertig, Utilities Executive Director FROM: Donnie Dustin, P.E., Water Resources Manager Carol Webb, Water Resources and Treatment Operations Manager Lance Smith, Utilities Strategic Finance Director RE: February 14, 2017 Work Session Summary: Changes to the Utilities Raw Water Requirements At the February 14 Work Session, Utilities staff made a presentation regarding proposed changes to the Utilities Raw Water Requirements (“RWR”) and associated cash-in-lieu (“CIL”) rate. The main proposed changes are to 1) reduce the amount of RWR (or volume of water requested), 2) adjust the CIL rate to $16,700 per acre-foot of RWR, and 3) going to a cash only system that discontinues dedication of water rights to meet the RWR. All but Councilmember Campana were present and Utilities staff (Donnie Dustin, Carol Webb and Lance Smith) was available to respond to questions. Key points or questions made by Councilmembers were:  General support was given for the proposed changes.  Staff should consider delayed implementation of the changes on the order of 6 to 12 months, and should define the impacts of this schedule.  Staff should provide information about the impact on ratepayers from not making these changes and how rates have changed over time.  Please provide justification for the contingencies used in the proposed changes.  Please orient new Councilmembers on these issues if Council action is delayed until after the April municipal elections.  Additional public outreach should be conducted, including to the general public, as well as affected stakeholders. Next Steps  Staff will conduct additional public outreach, including to the general public.  Information will be provided to address the questions about the impact of delaying or not making changes prior to returning for Council action.  Since action will be requested after the April municipal elections, orientation will be provided for new Councilmembers prior to returning for Council action. DocuSign Envelope ID: ED028F29-8AB4-4723-A63E-2CBC43799F9E