HomeMy WebLinkAbout038 - 03/16/2021 - ESTABLISHING RENTAL RATES AND DELIVERY CHARGES FOR USE OF WATER AVAILABLE UNDER FORT COLLINS UTILITI ORDINANCE NO. 038, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
ESTABLISHING RENTAL RATES AND DELIVERY CHARGES
FOR USE OF WATER AVAILABLE UNDER FORT COLLINS UTILITIES'
RAW WATER INTERESTS FOR 2021 THROUGH MARCH 2O24
WHEREAS, the City holds title to or otherwise has ownership interests in various water
rights, water right decrees, shares in ditch and reservoir companies ("shares"), and contractual
rights to the delivery of water that are sources of supply of raw and untreated water (together,
"Raw Water Interests"), many of which pertain to Fort Collins Utilities("Utilities"); and
WHEREAS,the amount of water available under Utilities' Raw Water Interests, at certain
times, may be greater than the immediate needs of Utilities and its ratepayers, and is thus
potentially available for use by persons outside of Utilities as a rental;and
WHEREAS, the City, through Utilities, has various agreements and understandings
pursuant to which Utilities allows persons outside of the City and certain City departments to use
water available under Utilities' Raw Water Interests, provided that a charge for the delivery of
such water is paid;and
WHEREAS, pursuant to Article XII, Section 4 of the City Charter, if at any time the water
supply is greater than the immediate needs of the City and its inhabitants, the City Council may
authorize the City Manager to permit the use of such surplus water by consumers outside the City
at such rates as the City Council may prescribe, provided that no vested right shall accrue under
such permits; and
WHEREAS, pursuant to Article XII, Section 6 of the City Charter, the City Council shall
by ordinance from time to time fix,establish,maintain,and provide for the collection of such rates,
fees, or charges for water furnished by the City as will produce revenues sufficient to pay the cost
of operation and maintenance of the City's utilities in good repair and working order and to provide
and maintain an adequate working capital fund for the day-to-day business operations of the
utilities; and
WHEREAS, Utilities staff has made a recommendation regarding the rental rates and
delivery charges for the use of water available under Utilities' Raw Water Interests for a period of
approximately three years, through March 2024, which the Water Board has approved; and
WHEREAS, City Council finds that the rental rates and delivery charges set forth herein
are appropriate and will provide revenues that offset the cost of operation and maintenance of
Utilities' Raw Water Interests and associated infrastructures and to keep the City's utilities in good
repair and working order and to provide and maintain an adequate working capital fund for the
day-to-day business operations of the utilities.
NOW,THEREFORE,BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
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Section 1. That the City Manager and the Utilities Executive Director are hereby
authorized to make water available under Utilities Raw Water Interests for use by persons outside
of the City and certain City departments, provided; that such water can be rented or delivered
without adversely affecting the City or Utilities and its ratepayers;that no vested right shall accrue
under such use;and that appropriate rental rate or delivery charge set forth herein is applied,which
may be adjusted as the City Manager or the Utilities Executive Director determine necessary to
reflect the remaining yield for the prevalent market price of the water or shares being rented in
order to prevent undue economic loss to the City;and that the final price may be rounded up to the
nearest dollar.
Section 2. That the City Manager and the Utilities Executive Director are hereby
further authorized: to impose on such rentals and deliveries such additional terms and conditions
as they deem appropriate to protect the interests of the City and Utilities in and to Utilities' Raw
Water Interests; and to deny any request for a rental or delivery, to the extent allowed by law, as
they deem appropriate to further the interests, policies, and values of the City.
Section 3. That all previous authorizations to make water available under Utilities'
Raw Water Interests are repealed in their entirety.
Section 4. That the rental rates set forth in the table below are hereby approved as the
City's rental rates for 2021 through March 2024 for Utilities' Raw Water Interests, provided that
the rental rate for fully consumable water shall apply through March 2024.
RATES FOR RENTALS OF SURPLUS RAW WATER
Type of Water Rate Per Acre Foot
Arthur Irrigation Company 120%of Annual Assessment
Colorado-Big Thompson Water from the Rental Rate for North Poudre Irrigation
Northern Colorado Water Conservancy Company (Seasonal Agricultural and Multiple
District (Northern) associated with Shares in Use Water) + any Northern transfer fees
the North Poudre Irrigation Company calculated at the time of transfer
Larimer County Canal No. 2 Irrigating 120%of Annual Assessment
Com an
New Mercer Ditch Company 120%of Annual Assessment
North Poudre Irrigation Company: $15.00 per acre foot
Early Agricultural Use Water
North Poudre Irrigation Company: (Annual Assessment / (Sum of Allocation of
Seasonal Agricultural and Multiple Use Water Seasonal Agricultural Use and Multiple Use
Water per share))+ $2.00 per acre foot
Pleasant Valley and Lake Canal Company 120%of Annual Assessment
Fully Consumable Sources $600.00 per acre foot
Sherwood Reservoir Company 120%of Annual Assessment
Sherwood Irrigation Company 120%of Annual Assessment
Warren Lake Reservoir Company 120%of Annual Assessment
Type of Water Rate Per Share
Water Supply and Storage Company Annual Assessment+$1,000.00 share
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Section 5. That the delivery charges set forth in the table below are hereby approved
as the City's delivery charges for 2021 through March 2024 for Utilities' Raw Water Interests.
RAW WATER DELIVERY CHARGES
Type of Water Rate Per Share
Arthur Irrigation Company 110%of Annual Assessment
Colorado-Big Thompson Water from the Rental Rate for North Poudre Irrigation
Northern Colorado Water Conservancy Company (Seasonal Agricultural and Multiple
District Use Water) + any Northern transfer fees
calculated at the time of transfer
Larimer County Canal No. 2 Irrigating 110%of Annual Assessment
Company
New Mercer Ditch Company 110%of Annual Assessment
Pleasant Valley and Lake Canal Company 110%of Annual Assessment
Sherwood Reservoir Company 110%of Annual Assessment
Sherwood Irrigation Company 1 10%of Annual Assessment
Warren Lake Reservoir Company 110%of Annual Assessment
Type of Water Rate Per Acre Foot
Fully Consumable Sources $120.00 per acre foot
Section 6. That City Council reserves the right to,in its sole discretion,amend,change,
or otherwise modify the rental rates and delivery charges set forth herein before March 31, 2024.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
March, A.D. 2021,and to be presented for final passage on the 16th day of March, A.D. 2021.
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Passed and adopted on final reading on the a of March, A.D. 2021.
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