HomeMy WebLinkAboutMemo - Read Before Packet - 11/17/2020 - Memorandum From Steve Malers, Water Board Chairperson, Re: Proposed Water Utility Rate Increase - Draft Water Board Minutes - Agenda Item #15
Utilities – Water Board
PO Box 580
Fort Collins, CO 80522
970.416.2146
fcgov.com
M E M O R A N D U M
DATE: November 13, 2020
TO: Mayor Troxell and Councilmembers
FROM: Steve Malers, Water Board Chairperson
RE: Proposed Water Utility Rate Increase
On November 12, 2020, the Water Board conducted a special meeting to discuss the proposed
2% rate increase for the Water Utility that will be before City Council for second reading on
November 17, 2020. The Water Board unanimously approved (8-0) the motion recommending
City Council approve the proposed 2% rate increase on second reading.
CC: Darin Atteberry, City Manager
ATTACHMENT: Draft - Water Board meeting minutes, 11-12-20
DocuSign Envelope ID: 89826D3F-1785-462F-B99C-F8EB27A43B18
DRAFT MINUTES WATER BOARD
SPECIAL MEETING
November 12, 2020, 5:30-6:30 p.m.
online via Zoom
1 1 /1 2 /20 20 – DRAFT MINUTES Page 1
1. CALL TO ORDER
5:33 p.m.
2. ROLL CALL
Board Members Present: Steve Malers (Chairperson), Kent Bruxvoort (Vice
Chairperson), Cibi Vishnu Chinnasamy, Randy Kenyon, Phyllis Ortman,
Nicole Ng, John Primsky, Greg Steed, Jason Tarry
Board Members Absent-Excused: Michael C. Brown, Jr., Jim Kuiken
Staff Members Present: Theresa Connor, Matt Fater, Katherine Martinez,
Lance Smith, Randy Reuscher, Dave Clabaugh, Jill Oropeza
Members of the Public: None
3. AGENDA REVIEW
Chairperson Malers briefly summarized the agenda item.
4. COMMUNITY PARTICIPATION
None
5. NEW BUSINESS
a. Regular Item
(Attachments available upon request)
i. Proposed 2021 Water Utility Rate Increase
Utilities Strategic Finance Director Lance Smith explained that the
Fire Mitigation Fund was not included in the City Manager’s
Recommended 2021 Budget and that the Cameron Peak Fire
watershed costs are still uncertain; Fort Collins will share costs with
other water providers; Estimated Fort Colins share of costs after
federal grant range: $1 million to $4 million. His presentation
included reasons for a rate increase now, 10-year rate forecast,
proposed 2021 residential average bill ($0.96 per month more).
This rate increases raises $600,000.
Discussion Highlights
A board member commented on and inquired about various related
topics including Gov. Jared Polis receiving funding for fire recovery
and whether it’s available to Fort Collins (Water Quality Services
DocuSign Envelope ID: 89826D3F-1785-462F-B99C-F8EB27A43B18
DRAFT MINUTES WATER BOARD
REGULAR MEETING
1 1 /12/2020 – DRAFT MINUTES Page 2 of 2
Manager Jill Oropeza replied that the coalition is reviewing all
funding sources, although a single grant would probably not exceed
$200,000, which means the City must pursue many different
funding sources); reserve funds (staff will request reserves as part
of the appropriation funding request); type of costs (staff replied
number of acres drives the cost range; matching dollars for federal
funds; helicopter services, mulching, considered construction
dollars under federal programs; project management; supplemental
treatments outside of what federal programs can do; post-fire
studies for water treatment; construction costs related to sediment
removal, etc.); opportunity for City staff to contribute labor hours
(neither Fort Collins nor Greeley have staff capacity for project
management, hence plans to request funding for contractors);
Northern Colorado Water Conservancy District organizing
stakeholders and assessing costs; reasons why this agenda item is
coming to Water Board after City Council has approved the rate
increase on first reading; Utilities Income Qualified Assistance
Program; using reserves rather than raising rates during a time of
COVID-19 pandemic and higher unemployment (increased
operating costs due to sediment and ash from wildfire); time
required to build reserves; water enterprise fund; both watersheds
are impacted and impacts will be felt for many years to come.
Board Member Steed moved that the Water Board recommend City
Council approve the proposed 2% increase in monthly water rates for
2021 to help offset mitigation costs related to the Cameron Peak Fire.
Board Member Ortman seconded the motion.
Discussion on the motion: A board member inquired why “rates” is
plural; staff replied it refers to different rate classes.
Vote on the Motion: it passed unanimously, 8-0
9. OTHER BUSINESS
The Water Board discussed upcoming agenda items for the December 3 work
session and December 17 regular meeting; the board agreed to schedule a
special meeting on December 3 in place of the work session.
10. ADJOURNMENT
6:39 p.m.
These minutes will be reviewed and approved by the Water Board at the
November 19, 2020 regular meeting. Chairperson Steve Malers has reviewed
these minutes.
DocuSign Envelope ID: 89826D3F-1785-462F-B99C-F8EB27A43B18