Department of Utilities
Reference: 27J MOU Regarding Water Fees
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Director of Utilities
Date Prepared: January 20, 2026
PURPOSE
Requesting City Council’s approval of a resolution authorizing the City Manager to execute a memorandum of understanding (MOU) between the City and 27J School District (27J) regarding water fees.
BACKGROUND
The City of Brighton leases consumable water to 27J to augment a well they utilize for irrigation at Prairie View Middle and High Schools. For the years 2023-2025, the City failed to provide invoices to the District for this consumable water per an agreement, so 27J did not pay for this water.
In addition to the above, the City of Brighton provides water, wastewater and storm drainage utility services to several 27J School District facilities, including Overland Trail Middle School (OTMS). For approximately three years, a faulty water meter was incorrectly recording water usage at OTMS. Upon the City becoming aware of this issue, bills for estimated usage for this time period were sent to 27J. It is typical for the City of Brighton, and other service providers in the utility sector, to estimate usage for up to three years based on available information and recover costs for service during meter interruptions. The estimated usage at OTMS resulted in a bill for usage fees of $98,833.84.
At the time this estimated bill for OTMS water usage was sent to 27J, 27J requested the City perform an audit of all 27J utility accounts. The City performed this audit and discovered two, two-inch water service connections that were unmetered and unbilled. These two services were located at concession stands at Brighton High School and Prairie View High School. Since the services had not been metered, no information was available to estimate past water usage. However, bills were generated for the fixed fees charged to all water accounts regardless of water usage. A bill for these fixed fees for the past three years was also sent to 27J. The bill for these fixed fees was in the amount of $31,378.96.
The City and 27J engaged in further review and discussion related to the OTMS estimated bill. It was noted during the conversations that, during the time of the faulty meter, several construction activities were occurring at OTMS. These construction activities included removal of substantial irrigated area and replacement with artificial turf. Due to the above reasons, the accuracy of the estimated usage was called into question. City staff are agreeable to a waiver of the OTMS balance owed during the estimated usage period due to the reasons listed above.
27J and the City agree that the bill for the fixed fees for the concessions stands ($31,378.96) is still due.
Lastly, during discussions with 27J, it was noted that Southeast Elementary, located at 1595 Southern Street, has two irrigation connections that serve the same area of landscape: one potable and one non-potable connection. The City is agreeable to abandoning the potable connection and not charging any fees related thereto as of the date of execution of the MOU.
Moving forward, 27J agrees to work diligently to timely bring and continue to maintain all 27J utility accounts current. The City agrees to work diligently to ensure that all 27J accounts are accurately assessed, and invoices for all utility services are issued on a timely basis. Invoices for the consumable water used for well augmentation and the OTMS fixed fees will be paid within 45 days of execution of the MOU. Per the MOU, 27J ultimately has 180 days from the execution of the MOU to bring all utility accounts current.
FINANCIAL IMPACT
Though this situation results in less revenue to the utility enterprise, no negative impact on the overall financial outlook for the enterprise is anticipated. The Utilities and Finance Departments continue to improve our strategies to reduce loss of revenue, including account audits and verification of accounts showing little or no usage during a billing period. With the use of new functionality in the new EERP system, invoices for items such as the consumable water can be more timely issued and tracked for payment.
STAFF RECOMMENDATION
City staff recommend approval of the resolution as drafted, authorizing the City Manager, or designee, to execute the MOU and waive the fees identified.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve resolution as drafted
• Approve a modified resolution
• Deny resolution
• Provide further direction to staff
ATTACHMENTS
• Resolution
• 27J executed MOU