From The Loveland Reporter-Herald (Max Levy):
The plan was first approved in 2005 as a way of ensuring that the city has enough water without having to cut back, even in a once-in-a-century drought. It was updated by the council in 2012.
Prepared by city staff members, the update includes several major recommendations. First, the city recommends using a model created by Spronk Water Engineers to continue prepping for a major drought, which was modeled based on the historic drought Colorado faced in 2002.
While the plan encourages water conservation as a buffer and a way of ensuring water security in the event of an even more severe drought, the plan notes that it is not “a tool to directly reduce future demands in long-term planning.”
A target of 30,000 acre-feet remains the city’s long-term goal for water demand. Currently, Loveland has access to a firm yield of about 25,210 acre-feet per year, which should increase by about 5,680 acre-feet by 2031, if the Chimney Hollow Reservoir west of Loveland and the Loveland Great Western Reservoir in east Loveland are completed as recommended.
The master plan projects the resulting 30,890 acre-feet would be enough to support the city until 2056.
Loveland customers used about 13,129 acre-feet of treated water last year, or about 0.166 acre-foot per person.
Points of the recommended policy on developer contributions to the city’s raw water portfolio include:
Requiring at least half and allowing up to 100% of most contributions to be made in the form of Colorado-Big Thompson Project water, cash-in-lieu or cash credits in the Loveland Water Bank. Decreasing the value of a C-BT credit from 1 acre-foot to 0.9 acre-foot. Adjusting credits for ditch shares based on the content of the Spronk analysis. Removing the 5% administrative cost on the cash-in-lieu fee and placing no limit on the amount of cash-in-lieu transactions, as long as they’re dedicated to a specific project. Tying storage fees to the estimated cost of storage at Chimney Hollow Reservoir. Including a fee of $482 per acre-foot in the native water storage fee to cover the engineering and legal costs of changing the use of native water in Colorado’s water courts. Changing the name of the native water storage fee to the “storage fee.”
The plan also leaves open the possibility of the city exploring the use of untreated water for irrigation, taking into account “concerns of cross-contamination and the relatively high expense of building a new utility in already developed parts of the community.”
Updates to water-related fees would go hand-in-hand with the plan and reflect the increasing costs of the Chimney Hollow project and C-BT water.
For the cash-in-lieu fee, in addition to eliminating the 5% administrative add-on, the new calculation would divide the average annual C-BT price by 0.9. Previously, the fee was tied to the average price over the past three to six months.
The native water storage fee would increase by between $15,132 per acre-foot of native water to $21,772 per acre-foot, depending on the source.
Raw water impact fees would increase for commercial, irrigation and some residential taps and would be phased in over a period of two to 10 years.
Loveland’s council will not vote on the items Tuesday, but members will give direction to the staff before the proposal comes back for a future vote.