Aurora committee debates water supply limits, large users and potential conditions for Niagara expansion

Aurora staff told the committee they will bring a two‑part briefing next month on the city’s water supplies and proposed growth policy, and committee members discussed how to respond to recent expansion requests from large industrial water users including Niagara and Gaylord.

Staff said part one will describe the current status of water supplies — including the Colorado River and South Platte basins — and part two will focus on policy for "growing intentionally," including how to handle extraterritorial annexations and large‑user requests. "Part 1 will probably take about half an hour. Part 2 might go a little bit longer," a staff member said.

The committee spent substantial time on Niagara, a bottled‑water company that recently added production capacity and requested permission to expand further. Marshall (staff) said Niagara increased production by adding equipment and a second bottling line and that the higher demand fit within the facility’s existing meter, which is why staff learned of the change only after water use rose. "They increased their ability well, their water use and their production out of the facility. They did it through adding equipment," Marshall said.

Staff described two problems Aurora encountered when Niagara first located in the city: a connection fee methodology that undercharged for continuous large‑meter use, and the fact that Niagara consumes (and bottles) water rather than returning it to the sewer system for reuse. According to the figures staff cited, Niagara paid a connection fee in the roughly $20 million range while staff estimated the water‑value basis at about $50 million, leaving a prior shortfall on the order of $30 million. Marshall said recovering that prior shortfall now could push a required payment "over $50,000,000."

Staff outlined administrative steps Aurora has taken for large users: the city adopted allocations and ended a policy that granted sewer‑billing exceptions to certain high‑use customers. Marshall said allocations and higher rates for usage above allocation create financial protection for the utility but do not fully prevent additional high water use if a customer is able to access it.

Committee members debated options for responding to Niagara’s expansion request. One council member suggested the city either say no to expansion or allow it only after Niagara paid for past undercharged connections and any incremental costs, noting the fee could be a large sum. Another member advocated asking Niagara informally whether it would be willing to make up prior unpaid fees; staff proposed bringing a formal recommendation to the policy committee following Niagara’s response.

The committee also discussed other large users and incentives. Marshall said Gaylord previously received an incentive agreement that capped connection fees and left it with no outdoor irrigation allocation; Gaylord pays higher rates for outdoor use and some lost revenue is being recovered over a long period. Marshall drew a distinction with Denver Water, which staff said has larger historic water rights and more cushion for new large uses.

Separately, staff reported progress in negotiations with a party referred to in the transcript as Dominion (Roxborough/Dominion): staff said the other party agreed to most city requirements, that one limited concession extended a specific 2.30 agreement through the WISE system longer than originally mandated, and that the parties were working to finalize a new agreement to be drafted by the end of the month or in April. Staff cautioned that certain infrastructure requirements remain contingent on approvals and property acquisitions and that the South Platte turnout would also require Denver Water approval.

Directions and next steps recorded in the discussion included staff contacting Niagara to ask whether the company will consider making up prior underpaid connection fees and bringing back a formal recommendation to the policy committee; staff also said they will present the two‑part water supply briefing at the next meeting. No formal council vote was recorded on Niagara’s request during this meeting.

Ending: Staff will ask Niagara whether it is willing to address past underpayments and will return to the policy committee with a recommendation; the committee also scheduled a two‑part series on water supply and growth policy for the next meeting.