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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/20/2008 - SECOND READING OF ORDINANCE NO. 047, 2008, APPROPR ITEM NUMBER: 12 AGENDA ITEM SUMMARY DATE: May 20, 2008 FORT COLLINS CITY COUNCIL STAFF: John Stokes SUBJECT Second Reading of Ordinance No. 047, 2008, Appropriating Prior Year Reserves in the General Fund for Review and Analysis of the Draft Environmental Impact Statement for Northern Integrated Supply Project. RECOMMENDATION Staff recommends adoption of this Ordinance on Second Reading. EXECUTIVE SUMMARY Staff has been preparing for several months for the release of a Draft Environmental Impact Statement ("DEIS") associated with the Northern Integrated Supply Project ("NISP"). The DEIS was issued on April 30,2008,and staff will now proceed to analyze NISP based on the DEIS rather than predictions of what the DEIS would contain. The DEIS contains approximately 700 pages of detailed analysis, together with numerous technical reports and other appendices, and preparation of meaningful comments will require substantial effort and the assistance of qualified consultants to provide input regarding potential impacts to the City and along the Poudre Corridor from NISP. The Ordinance, unanimously adopted on First Reading on May 6, 2008, appropriates $225,000 in General Fund reserves to assist with the costs associated with review of and commenting on the DEIS. Utilities and Natural Areas will also provide additional funding for this work from already- appropriated monies. ATTACHMENTS I. Copy of First Reading Agenda Item Summary - May 6, 2008. (w/o original attachments) ATTACHMENT 1 ITEM NUMBER: 24 AGENDA ITEM SUMMARY DATE: May 6, 2008 FORT COLLINS CITY COUNCIL QzAFF: John Stokes SUBJECT First Reading of Ordinance No. 047,2008,Appropriating Prior Year Reserves in the General Fund for Review and Analysis of the Draft Environmental Impact Statement for Northern Integrated Supply Project. RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. FINANCIAL IMPACT , LOhas'al A total of approximately$350, Udn ent in the ast several years from appropriated funds in the Water Fund (apprly0 water lity studies and other preliminary work),the Natural Areas Fund(approximately$77,000 for ecological studies and other preliminary work), and General Fund (approximately $27,000 for preliminary review work). The Ordinance appropriates an additional $225,000 from reserves in the General Fund to be used together with an additional $135,000 in already-appropriated Utilities funds and an additional $50,000 in already- appropriated Natural Areas funds, to pay for technical analysis and review, preparation of reports and draft comments, and outside legal fees in connection with review of the Draft Environmental Impact Statement ("DEIS") for Northern Integrated Supply Project("NISP"). EXECUTIVE SUMMARY Staff has been preparing for several months for the release of a Draft Environmental Impact Statement("DEIS")associated wjail&No m I ate p roject("NISP"). As indicated in the staff presentation at th ece b 11, 0 w rk session, staff has planned to develop comments on the DE for C cil's ation er the release of the DEIS. The release date for the DEIS had a s er times, b the DEIS was issued on April 30, 2008, and staff will now be able to proceed to analyze NISP based on the DEIS rather than predictions of what the DEIS would contain. The DEIS contains approximately 700 pages of detailed analysis, together with numerous technical reports and other appendices, and preparation of meaningful comments will require substantial effort and the assistance of qualified consultants to provide input regarding potential impacts to the City and along the Poudre Corridor from NISP. The Ordinance appropriates $225,000 in General Fund reserves to assist with the costs associated May 6, 2008 -2- Item No. 24 with review of and commenting on the DEIS.Utilities and Natural Areas will also provide additional funding for this work from already-appropriated monies. BACKGROUND The Northern Colorado Water Conservancy District(the"District")is proposing a water storage and supply project known as NISP. The District made a presentation about the project to City Council on May 22, 2007. Based on that presentation and the staff presentation and Council work session on December 11, 2007, staff has been preparing to submit comments to the Army Corps of Engineers (the "Corps") in response to the DEIS. NISP is a project designed by the District and twelve municipalities and water districts. The Project is intended to increase water supplies for the collaborating entities. Several different alternatives to provide enhanced water supplies have been proposed by the District and its partners. The preferred alternative identified by the partners involves the construction of a new reservoir to the northwest of Fort Collins (the "Glade"reservoir) and development of what is known as the South Platte Water Conservation Project. The preferred alternative (as well as three additional alternatives) has been analyzed by the Corps, and a DEIS describing those alternatives and the Corps' analysis was released on ApxL1 2 8. EIS is a d iled, federally required review of the alternatives and will incl a ext n e an s o vy mal impacts associated with the alternatives. Utilities and Natural Resources staff work to prepare for the release of the DEIS primarily has been focused on anticipating and evaluating the potential impacts of NISP's preferred alternative to an approximately ten-mile reach of the Poudre River from Overland Trail road to I-25. SUMMARY OF STAFF WORK Poudre Technical Advisory Group: On November 1 st, the Natural Resources Department (NRD) and Utilities staff hosted a 4-hour roundtable discussion with technical experts to assess past, present and potential future condition of the Poudre River. A technical summary("white paper")was prepared to present an overview of major findings and issues,potential change to river dynamics and future conditions. This report will be posted on the City of Fort Collins web page as of May 2nd. Evaluation of Hydrologic M t7t jot ti pact Ayres Associates Ayres Associates was contracted by the NRD and Utilities to make a broad assessment of the potential impacts of Glade Reservoir on the Poudre River between Overland Trail and I-25. Phase I of a possible three-phase project describes, at a general level, the potential impacts of NISP's preferred alternative to Poudre River hydrology, geomorphology, hydraulics, fisheries, and vegetation. The Phase I Report was provided to the Council in the May 1, 2008, Council packet.. Phase II of this project could include a more detailed and refined assessment of the potential impacts. Phase III would entail a close reading of the DEIS and assistance to staff by the consultant May 6, 2008 -3- Item No. 24 to help develop comments to the Army Corps. This report will be posted on the City of Fort Collins web page as of May 2nd. Economic Survey - The City contracted with Dr.Jo Loomi01tiptizenmen f Resource Economics at Colorado State University to conduct a" e ey of the "financial value"of the Poudre River to a Fort Collins citizen. A questionnaire survey was sent to approximately 550 households in Fort Collins to determine what a typical citizen would consider paying to maintain or improve flows in the Poudre River. The survey is consistent with the type of survey instrument the Army Corps of Engineers uses in Environmental Impact Statements. The results of the survey were provided to the Council in the May 1, 2008, Council packet. Water Quality The Utilities Department has been studying potential impacts to drinking water quality from NISP for several years, and is continuing a cooperative flow and water quality program with the U.S. Geological Survey at key points on the Cache la Poudre including the Lincoln Street and Boxelder gauges as well as at several points upstream from the mouth of the canyon. That extensive USGS flow and water quality dataset could be used in evaluating the EIS and corresponding potential impacts of NISP on the Poudre o rt S.Yat ow measurement sites include a gauge station on the North Fo of th dre u st and near Joe Wright Reservoir. In addition, Utilities has establ ed an ensiv c peratioring program with the City of Greeley and the Tri-District lan st h baater quality data both up and downstream of the mouth of the canyon as well as Horsetooth, Halligan and Seaman Reservoirs. These long-term monitoring programs are designed to provide the data necessary to ensure effective and efficient water supply, treatment operations, and water delivery services to our customers. In addition, staff has been working to plan its approach for reviewing and responding to the DEIS, given the magnitude of the DEIS and, consequently, the magnitude of the review project. A staff team has been meeting regularly for several months, and will be working with Ayres, the City Attorney's Office and outside legal counsel, and other outside experts as appropriate, to evaluate the DEIS and expected impacts from NISP, and to prepare draft comments. A total of approximately$350,000 has already been spent in the past several years from appropriated funds in the Water Fund (approximately$240,000 for water quality studies and other preliminary work),the Natural Areas Fund(approximately$77,000 for ecological studies and other preliminary work), and General Fund (appr el y 0 n eview work). The Ordinance appropriates an additional $22 00 fr rese s ' th a and to be used together with an additional $135,000 in Utilitie ds an a ti $50,0 in Natural Areas funds,to pay for technical analysis and review,p amdio o d dra ments, and outside legal fees in connection with review of the DEIS for NISP. ORDINANCE NO. 047, 2008 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE GENERAL FUND FOR REVIEW AND ANALYSIS OF THE DRAFT ENVIRONMENTAL IMPACT STATEMENT FOR THE NORTHERN INTEGRATED SUPPLY PROJECT WHEREAS,the Northern Colorado Water Conservancy District(the"District")has proposed to construct a large water storage and supply project known as the Northern Integrated Supply Project("NISP"); and WHEREAS, in order to move forward with the necessary permitting for NISP, the District is required to complete an environmental impact review process,conducted in this case by the U.S. Army Corps of Engineers (the"Corps") as the permitting agency; and WHEREAS,as part of the review process,the Corps has issued a draft Environmental Impact Statement ("DEIS") describing a preferred alternative and three other alternative projects, and analyzing those projects, and the environmental impacts associated with each; and WHEREAS, the preferred alternative identified in the DEIS involves the construction of a new reservoir to the northwest of Fort Collins near the mouth of the Cache la Poudre River,together with development of a project known as the South Platter Water Conservation Project (together referred to as the "Glade Project"); and WHEREAS, the City anticipates that the Glade Project may have significant impacts on the Cache la Poudre River, which flows through Fort Collins and is a focal feature of the City's Downtown River Corridor Project and other short-term and long-term City plans and projects; and WHEREAS, the Glade Project may also have significant impacts upon water quality of concern to the City, including both the quality of the water in the Cache la Poudre River and the quality of the City's drinking water supply; and WHEREAS, in order to evaluate and provide comments to the District and the Corps regarding the impacts the Glade Project is expected to have on the Cache la Poudre River and surrounding Fort Collins, and on drinking water quality and other matters of concern to the City, it will be necessary for the City to undertake a thorough and detailed technical analysis of the DEIS and then develop thoughtful and appropriate comments based upon that analysis; and WHEREAS, the work involved in analyzing and commenting upon the DEIS will require substantial technical expertise and assistance; and WHEREAS, the City has already expended or is in the process of expending approximately $350,000 for studies and technical assistance related to review of the Glade Project and its impacts, and the completion of the review will require substantial additional expenditures; and WHEREAS, the City Manager has requested that the Council appropriate $225,000 from prior year reserves in the General Fund, to be used for continuation and completion of the City's analysis and response to the DEIS,together with$135,000 of existing appropriations in the Utilities funds and$50,000 of existing appropriations in the Natural Areas funds available for that purpose; and WHEREAS, the requested amount is available from General Fund prior year reserves; and WHEREAS,Article V, Section 9,of the Charter of the City of Fort Collins permits the City Council to appropriate by ordinance at any time during the fiscal year such funds for expenditure as may be available from reserves accumulated in prior years,notwithstanding that such reserves were not previously appropriated. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated for expenditure from General Fund prior year reserves the sum of TWO HUNDRED AND TWENTY FIVE THOUSAND DOLLARS ($225,000) to be used for the review and analysis of the DEIS for NISP and preparation of a related response to the Corps. Introduced,considered favorably on first reading,and ordered published this 6th day of May, A.D. 2008, and to be presented for final passage on the 20th da May, A.D. 2008. May(L) ` ATTEST: 4" . 3 A 'AA City Clerk Passed and adopted on final reading on the 20th day of May, A.D. 2008. Mayor ATTEST: City Clerk