Aurora staff outlined the city’s long history with a major water customer and told council on April 12 that the city has asked Niagara Bottling to make the city whole for prior under‑recovered costs before the company’s proposed expansion can be approved.

The overview traced a 2012 will‑serve letter to Niagara, subsequent attempts to revise fee structures and a 2025 staff letter offering paths to an exception for further expansion if Niagara pays legacy cost recovery and new connection fees.

Key facts and timeline presented
- Initial approval and fees: Niagara received a will‑serve letter in 2012. At that time the company paid combined water and wastewater connection fees of about $2.6 million (presented by staff).
- Revised fee structure: In 2013 Aurora adopted volumetric connection fees that reflected the city’s source-of-supply costs; much of the per‑gallon connection value reflected the cost to acquire raw water supply.
- Current usage and valuation: Staff said Niagara’s current usage is roughly 514,000 gallons per day (about 576 acre‑feet per year) and that the 2013 estimated value of that water was about $30 million; staff said the same volume is worth roughly $62 million under more recent valuations.
- Expansion requests and the city’s response: Niagara sought formalized allocations and the option to add a third bottling line. Staff said the company has asked to add either ~130,000 or ~190,000 gallons per day under two scenarios. Aurora’s recent letter said the company is already in a not‑allowed category and that one path to an exception would be to pay a roughly $28 million “make‑whole” payment that covers past under‑recovery (based on older values), then pay current connection fees for the requested expansion — staff estimated total payments of approximately $45 million under the smaller expansion scenario and about $56 million under the larger scenario.

What staff said about cost drivers and constraints
- Water supply value: Staff said most of the connection‑fee value is driven by the cost of raw water supply acquisition, and that Niagara’s bottled water is largely nonrecoverable (the city cannot reuse most of it), which raises the cost burden relative to customers whose water is treated and returned to the system.
- Sewer and system impacts: Niagara’s growth previously required upgrades (for example, a Prologis lift station expansion that cost about $1.5 million) to handle sewer flows; staff said some costs of system upgrades were spread system‑wide and were not fully recovered from Niagara.
- Policy and limits: Staff noted the city’s Large Water User Guide, established exceptions and a policy framework. In some cases, staff said, the city may not have the water supply to grant additional connections even if a customer is willing to pay high fees.

Council discussion
- Several council members pressed whether the city could limit Niagara’s water use during droughts or require reductions; staff said the city’s regulatory tools generally allow for surcharge or higher charges rather than direct forced reductions, although special agreements could impose drought‑use limits as a condition of expansion.
- Some council members asked about job numbers and local tax benefits; staff said sales tax on bottled water is collected at point of sale and is not generated by the bottling location itself; staff noted uncertainty in Niagara’s employment figures provided to the city.

What’s next: staff said the letter is an opening position; the city expects a response from Niagara and additional conversations; council members were notified the city may receive calls.

Speakers
- Marshall Brown, staff member (water resources presentation start ~s:3572)
- Multiple council members questioned staff; answers reflect staff statements in the briefing.

Clarifying details (from presentation)
- Connection fees paid by Niagara in 2012 (combined water and wastewater): approximately $2,600,000.
- Estimated 2013 value of the same water volume: about $30,000,000 (water only); staff said the 2025 valuation for that volume is ~ $62,000,000.
- Niagara’s historical allocation cited in the briefing: roughly 514,000 gallons per day.
- Staff’s recent letter offered an option requiring a roughly $28,000,000 “make‑whole” payment plus current connection fees; staff estimated total costs for new expansion scenarios at roughly $45,000,000 (smaller scenario) and $56,000,000 (larger scenario).

Authorities and guidance referenced
- City Large Water User Guide (staff reference; policy document developed by staff).
- 2013 volumetric connection fee methodology (staff described the underlying fee structure and the distinction between recoverable vs. nonrecoverable water).

Topics
- primary: water-policy
- topics:[{"name":"water-policy","justification":"Detailed staff briefing on connection fees, allocations, conservation limits and a city letter to a major bottling company over expansion and cost recovery.","scoring":{"topic_relevance":1.00,"depth_score":0.95,"opinionatedness":0.02,"controversy":0.85,"civic_salience":0.90,"impactfulness":0.90,"geo_relevance":1.00}}],

Discussion vs. decision
- Discussion points: historical under‑recovery of connection costs, valuation of water supply, sewage impacts and precedent for large user exceptions.
- Direction: staff sent a letter offering financial paths for an exception and will await Niagara’s response; council asked staff to return with answers as discussions proceed.

Searchable_tags:["Niagara Bottling","water policy","connection fees","water allocations","Aurora"]