HomeMy WebLinkAboutMemo - Mail Packet - 4/7/2020 - Memorandum From Lisa Rosintoski And Abbye Neel Re: Quarterly Update On Allotment Management Program (Amp)Utilities
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222 Laporte Ave.
PO Box 580
Fort Collins, CO 80522-0580
970.212.2900
V/TDD: 711
utilities@fcgov.com
fcgov.com/utilities
M E M O R A N D U M
DATE: April 7, 2020
TO: Mayor Troxell and Councilmembers
FROM: Lisa Rosintoski, Utilities Deputy Director, Customer Connections
Abbye Neel, Water Conservation Specialist
THROUGH: Darin Atteberry, City Manager
Jeff Mihelich, Deputy City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Quarterly update on Allotment Management Program (AMP)
Bottom Line
The first application cycle for the Allotment Management Program (AMP) closed in Dec 2019.
Fifteen applications were received, and twelve applications were accepted into the program. In
this first year, staff estimates that 30% of qualified customers applied with an overall potential
water savings of 4 million gallons annually. On average, Staff estimates these customers will
reduce their allotment overages by 42% and each save an average of $4,000 annually.
Background
Beginning in March of 1984, Utilities started requiring new developments to meet a Water
Supply Requirement (WSR) by providing water rights or cash-in-lieu of water rights. The WSR
accounts for the new demand that is being added to the system by the development. For all non-
residential taps (e.g. commercial and sprinkler), an annual water allotment is assigned based on
the volume of WSR met. About 1,200 (34%) of non-residential water customers have a water
allotment. In any given year, around 300 (10%) of non-residential taps exceed their water
allotment. The majority start exceeding in September, after irrigation season.
When a non-residential customer (e.g. commercial and sprinkler) uses more than their assigned
water allotment, they receive an Excess Water Use surcharge (EWU). The surcharge is applied to
water used over the allotment for the remainder of the year. Due to increasing cost of service,
City Council has approved significant modifications to the WSR over the past four years, which
have increased the EWU surcharge from $3.06 per 1,000 gallons to $10.09 per 1,000 gallons in
excess of the allotment. Additional increases may occur if cost of service continues to rise. Due
to the increase some customers face EWU surcharges over $50,000, with over half paying at
least $5,000 and 30 paying over $12,000 annually.
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Customers typically exceed their allotment because:
1. They are using water inefficiently.
2. There has been a change in business type (e.g., gas station turns into a restaurant).
3. The allotment is too small for the property’s water need.
If a customer exceeds for any of the reasons above, options are:
1. Customers who exceed due to inefficient water use can take advantage of a variety Water
Conservation programs including WaterSmart – our online monitoring program, the
Landscape Water Budget Program, and rebates. Learn more at fcgov.com/water-
efficiency.
2. Customers who exceed because of a change in business type are encouraged to purchase
additional WSRs to meet the new business’ water need.
3. Customers who exceed because the allotment is too small for the property’s water need
can participate in the new Allotment Management Program (AMP).
Allotment Management Program (AMP)
AMP was approved in April 2019 through Ordinance No. 050, 2019 to help customers who
exceed because their allotment is too small for their property. Prior to AMP these customers did
not have resources to avoid high EWU surcharges because they exceed their allotment even
when implementing water conservation best practices.
AMP provides a temporary waiver from EWU surcharges provided the customer implements a
project that will create long-term water reduction. By temporarily waiving the surcharges, money
that would have been spent on EWU can be applied to a project that will lower water use closer
to a customer’s water allotment and help the customer reduce or avoid surcharges in the future.
This framework provides a cost-effective alternative to developing additional water supply
resources by incentivizing water efficiency projects that permanently lower water demand.
To participate a customer must submit an application that clearly:
1. Demonstrates their existing landscape’s water demand will exceed the annual water
allotment even when implementing best management practices
2. Provides a plan for long-term water reduction, like irrigation equipment upgrades and/or
landscape transformation to water-wise plants
Each application is evaluated based on water savings, project feasibility and quality. Depending
on scope participants receive up to a three-year waiver from EWU surcharges. If a participant
receives a multi-year waiver the waiver is tiered. For example, if an applicant is awarded a two-
year waiver, then in the first year, 100% is waived and in the second year, 50% waived. This is
to account for the vegetation establishment period, which is critical in the first year of planting.
Applications are received and reviewed on an annual basis (e.g. apply in 2019 to receive waiver
in 2020, apply in 2020 to receive waiver in 2021). Customers can apply for the waiver through
2022 and the last year a wavier will be issued is 2025. Staff estimates roughly 50 customers are
eligible to participate in the program.
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2020 Application Cycle
The first application period opened in July of 2019. A total of 15 applications were received, and
12 applications were accepted. Two were denied due to inadequate funding and one was denied
because not enough information was provided to fully evaluate the project. Staff has informed
these customers of alternative funding sources (e.g. Xeriscape Incentive Program) and is helping
each assemble more complete applications for 2021.
Information on accepted applications summarized by Council District can be found below:
District Number of Projects Combined Project
Size (Square Feet)
Combined Estimated
Annual Water Savings
(Gallons)
1 3 122,102 976,446
2 5 245,422 1,976,041
3 2 67,509 732,104
4 1 6,079 77,941
5 1 34,129 332,905
Total 12 475,241 4,095,437
Currenlty, there are no projects in District 6.
Next Steps
Staff will monitor and advise as customers implement their projects. This includes helping
customers navigate the Development Review Minor Amendment process. Participants will be
required to submit plans outlining short- and long-term management strategies, as well as
progress reports that document project advancement to ensure success.
The application cycle for a waiver starting in 2021 is set to open in April 2020. Staff is
advertising the program to eligible customers via direct phone calls, mailings, as well as reaching
out to the landscape contractor community. Staff aims to enroll an additional 10 customers in
2021.
Related Efforts
In addition to AMP, Water Conservation launched the Xeriscape Incentive Program (XIP) for
Commercial and HOA customers. Through this competitive grant-style program, participants can
receive funding if they meet certain requirements and submit a plan for conversion from a high-
water use landscape to a water-wise landscape. In the first-year staff received 19 applications and
funded 7 projects. Nine of the 19 applicants (4 of the 7 awarded) are participating in AMP.
Despite demonstrated interest, the program is only temporarily funded through state and federal
grants through 2020. To learn more visit fcgov.com/xipXL.
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In addition to the XIP, AMP customers can take advantage of the Nature in the City grant
program and Northern Water’s landscape conversation grant program. Staff is working closely
with both groups to ensure resources are available to customers.
Finally, Water Conservation is leading a project to address how allotments are assigned in new
development to ensure problems with allotment size are not perpetuated to new customers. The
project focuses on developing alternative methodologies for assigning allotments that will more
closely align to how much water a customer will use and ensure allotments are properly assigned
from the start. Staff will provide annual updates and seek feedback from Councilmembers as this
project develops.
CC: Carol Webb, Utilities Deputy Director, Water Resources and Treatment Operations
Liesel Hans, Water Conservation Manager
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