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HomeMy WebLinkAboutMemo - Mail Packet - 4/7/2020 - Memorandum From Carol Webb Re: Current Status Of Water Service For The Montava Planned Unit DevelopmentUtilities electric · stormwater · wastewater · water 700 Wood Street PO Box 580 Fort Collins, CO 80522 970.221.6700 utilities@fcgov.com fcgov.com/utilities M E M O R A N D U M DATE: 04/01/2020 TO: Mayor and City Councilmembers THRU: Darin Atteberry, City Manager Jeff Mihelich, Deputy City Manager Kevin Gertig, Utilities Executive Director FROM: Carol Webb, Utilities Deputy Director RE: Current Status of Water Service for the Montava Planned Unit Development This memo is in response to a request from City Council for an update on the status of discussions regarding water service for the Montava Planned Unit Development (the Development). The Development is located in the East Larimer County Water District (ELCO) water service area. The Development has a “will serve” letter from ELCO. The City has been exploring potential alternative water supply arrangements that may be more economical for the Development, with a goal of furthering City goals such as affordable housing. The current arrangement under discussion includes the Development making a one-time cash payment to the Utilities based on the Utilities cash-in-lieu rate at the time the payment is made for up to 400 acre-feet. Utilities would perpetually transfer up to 400 acre-feet of Colorado-Big Thompson Project (“CBT”) water to ELCO each year. The annual amount transferred to ELCO would be reduced in extreme droughts and Utilities would retain ownership of the CBT units. Utilities would charge ELCO annually for all costs and administration fees. ELCO would likely pass these annual costs on to the Development. This arrangement would meet ELCO’s water dedication requirements for the Development for up to 400 acre-feet. The Development would be responsible for ELCO’s water dedication requirements beyond 400 acre-feet. City staff plan to have an executive session with City Council on this matter in the coming months. Pc: Carrie Daggett, City Attorney Eric Potyondy, Assistant City Attorney DocuSign Envelope ID: B5C96B8E-6E28-4644-9D6E-B03AE2D9C959