HomeMy WebLinkAboutMemo - Mail Packet - 3/19/2019 - Memorandum From Lance Smith Re: Benefits Of The Intergovernmental Agreement For Water Treatment Service Capacity With Fort Collins-Loveland Water DistrictUtilities
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M E M O R A N D U M
DATE: March 11, 2019
TO: Mayor Troxell and Councilmembers
FROM: Lance Smith, Utilities Strategic Finance Director
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Benefits of the Intergovernmental Agreement for Water Treatment Service
Capacity with Fort Collins-Loveland Water District
This Intergovernmental Agreement (IGA) was established in 2013 as a way for the District to
acquire 5 million gallons per day (5 MGD) of water treatment capacity. Now the District is
looking to remove this debt obligation from its books through the proposed amendment. This
IGA had benefits for the District, Fort Collins Utility customers and the City as a whole. These
benefits included:
District:
1. The IGA allowed the District to economically acquire 5 MGD of treatment capacity
immediately rather than having to construct it at a higher cost.
2. It allowed the District to pay for the capacity over time as growth continued and
additional revenue was generated rather than paying for the full cost of the capacity up
front.
Fort Collins Utility Ratepayers:
1. The IGA allowed the ratepayers to recover some investment in treatment capacity that is
no longer needed by them.
2. It allowed for higher utilization of existing treatment assets resulting in ongoing revenue
to the Water Enterprise.
City of Fort Collins:
1. A regional solution was found to provide needed treatment capacity for growth within the
City.
2. By providing this capacity at the lowest cost, the impact on development fees were
minimized.
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