HomeMy WebLinkAboutMemo - Mail Packet - 4/23/2019 - Memorandum From Theresa Connor Re: Wastewater Services To Montava Pud And Northeast Gma AreaUtilities
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: April 17, 2019
TO: Mayor Troxell and Councilmembers
FROM: Theresa Connor, P.E., Utilities Deputy Director, Water Engineering & Field
Services
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Wastewater Service to Montava PUD and Northeast GMA area
Bottom Line:
Fort Collins Utilities (FCU) staff has initiated conversations with the Boxelder Sanitation District
(BSD) Administration and Staff to determine if there are opportunities to collaboratively provide
wastewater service in the northeast GMA area of the City that overlaps with the BSD service
area. Staff is trying to determine if there are options for FCU to work with BSD that will reduce
the development fees associated with wastewater service in this area that will help developers
meet their affordable housing goals and keep the BSD service area whole, all without adversely
impacting FCU and its ratepayers.
Background:
The development proposals in the northeast GMA area for the City have a substantial amount of
affordable housing units. These developments are struggling with providing affordable housing
in the area, due in part to the Plant Investment Fee (PIF) from the BSD than are substantially
higher than the analogous FCU PIF. In round numbers, the BSD PIF is $12,000 per unit as
compared to the Fort Collins Utility Wastewater PIF at $4,000. The developers of affordable
housing units in the NE GMA area have asked if there is some relief from the BSD PIF.
BSD is a small, single purpose utility for wastewater service for a large area that covers the NE
GMA in Fort Collins, Timnath, Wellington, and part of Larimer County. They currently serve
6,000 customers as compared to FCU at well over 30,000 customers (taps). BSD has indicated
losing any portion of their service area will negatively impact the entire service area. BSD is in
the process of expanding the hydraulic and organic capacity of their plant to meet existing and
future demands. They expect to start construction this summer.
DocuSign Envelope ID: 41A0E4D0-67C8-4640-85EB-81D2EFC1D50C
FCU and BSD staff have initiated conversations to determine if there are opportunities to work
together that will allow BSD to maintain their service area, but through working with FCU could
potentially reduce their capital costs that allow the PIFs to be reduced for development in the NE
GMA area. Of course, any arrangement would need to not adversely affect FCU and its
ratepayers. Any agreement would be brought to City Council for approval. The current
conversations are very preliminary and only exploratory at this point.
CC: Jason Graham, Director, Wastewater Operations
Eric Potyondy, Assistant City Attorney
DocuSign Envelope ID: 41A0E4D0-67C8-4640-85EB-81D2EFC1D50C