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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/18/2012 - ITEMS RELATING TO THE HIGH PARK FIRE REMEDIATIONDATE: September 18, 2012 STAFF: Kevin Gertig, Lance Smith Lisa Voytko AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 14 SUBJECT Items Relating to the High Park Fire Remediation. A. Second Reading of Ordinance No. 098, 2012, Appropriating Additional Prior Year Reserves in the Water Fund for Additional High Park Fire Remediation. B. Resolution 2012-090 Authorizing the Mayor to Sign Additional Intergovernmental Agreements Regarding Funding of Cache La Poudre Watershed Mitigation in Response to the High Park Fire. EXECUTIVE SUMMARY On August 21, City Council approved an emergency ordinance appropriating reserves from the Water Fund to begin the soil stabilization efforts required to limit the impacts of the High Park Fire on the Cache la Poudre watershed. That appropriation allowed work to begin on the Hill Gulch, which had been identified as the most critical area comprising Phase 1 of the effort for the whole 5,657 acres which will require aerial mulching and seeding per the Burn Area Emergency Response (BAER) report. That work is anticipated to be completed in 2 weeks, allowing the next critical area, Boyd Gulch, to be treated before October. This Ordinance, unanimously adopted on First Reading on September 4, 2012, seeks $2,000,000 from the Water Fund reserves to tackle the soil stabilization efforts in the Boyd Gulch and other high-priority areas to be completed in 2012. On August 21, City Council also approved Resolution 2012-079 authorizing the Mayor to sign two Intergovernmental Agreements to allow the initial work to be done in Boyd Gulch. With the additional funding being requested through Ordinance No. 098, 2012, it will be necessary to enter into similar agreements to complete the additional soil stabilization efforts. BACKGROUND / DISCUSSION The additional soil stabilization work that will be done through this Resolution and Ordinance in 2012 will be coordinated between the City of Greeley, Tri-Districts and the City of Fort Collins, with Greeley serving as the lead with the contractor, Western States Reclamation. This is the contractor who completed the initial reseeding in Hill Gulch. The next area of focus is Boyd Gulch, followed by Unnamed #2 and Unnamed #3 Gulches. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on Second Reading and the Resolution. ATTACHMENTS 1. Copy of First Reading Agenda Item Summary - September 4, 2012 (w/o attachments) COPY COPY COPY COPY ATTACHMENT 1 DATE: September 4, 2012 STAFF: Kevin Gertig, Lance Smith Lisa Voytko AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 17 SUBJECT First Reading of Ordinance No. 098, 2012, Appropriating Additional Prior Year Reserves in the Water Fund for Additional High Park Fire Remediation. EXECUTIVE SUMMARY On August 21, City Council approved an emergency ordinance appropriating reserves from the Water Fund to begin the soil stabilization efforts required to limit the impacts of the High Park Fire on the Cache la Poudre watershed. That appropriation allowed work to begin on the Hill Gulch, which had been identified as the most critical area comprising Phase 1 of the effort for the whole 5,657 acres which will require aerial mulching and seeding per the Burn Area Emergency Response (BAER) report. That work has begun and is anticipated to be completed in 2 weeks, rather than the initial estimate of 4 weeks, allowing the next critical area, Boyd Gulch, to be treated before October. This Ordinance seeks additional funds from the Water Fund reserves to tackle the soil stabilization efforts in the Boyd Gulch and other high-priority areas. This Ordinance appropriates $2,000,000 from the Water Fund reserves so that additional mitigation efforts can be completed in 2012. BACKGROUND / DISCUSSION The High Park Fire, which began on June 9, 2012 and ended on July 11, 2012, has affected the Cache la Poudre watershed. The City has a large vested interest in the quality of water in the Poudre River. The Cache la Poudre watershed is not owned by Fort Collins Utilities and consequently, it is necessary to work with other governmental entities and private landowners to effectively address the negative effects of erosion/sediment transport into the River due to rain on the burn area. Over 70% of the burned area resides on private land, which will not be mitigated without participation of the City of Fort Collins. The City of Greeley has entered into an agreement with Western States Reclamation to do similar mitigation in the Hill Gulch already. That contractor is currently completing the reseeding and mulching necessary to slow the erosion affecting Hill Gulch and will be ready and available for this effort. The cooperative efforts after the High Park Fire have identified Boyd Gulch as a priority area for similar efforts. A total of 5,657 acres require treatment. This funding represents the City of Fort Collins portion of the funds required to treat this area and possibly other areas in 2012. Staff will continue to update the City Council and community as more information becomes available. What is known at this time is that the water quality is, and will continue to be, challenging to treat after any rain or snow melt. Based on literature of watershed fires, we could experience negative effects for years after this fire. In addition, these negative effects will change as the years go by with immediate effects being the presence of ash and sediment in the river and longer term changes to the water quality such as metals concentration and algae growth leading to taste and odor issues are anticipated. Denver Water for example is still dealing with the Hayman fire more than a decade later. FINANCIAL / ECONOMIC IMPACTS This effort will be coordinated through the National Resources Conservation Service (NRCS) through a program called “Emergency Watershed Protection (EWP)”. The program is designed for recovery measures. The measures must be environmentally and financially sound. It is possible we will be eligible for up to 75% reimbursement from the federal agencies and the City would pay the remaining 25%. It is not anticipated that federal funds will be available to reimburse the City for any work done in 2012. Federal funds may not be available for work done in 2013 either, although that is not known at this time. However, it is necessary to begin the mitigation efforts immediately. COPY COPY COPY COPY September 4, 2012 -2- ITEM 17 Since the total recovery cost impacts are still being determined at this time, this Ordinance is requesting funding only for the mitigation efforts related to the Boyd Gulch and other high priority areas in 2012. As further financial assessments are completed, staff will update the City Council. It is anticipated at this time that a rate increase will be necessary in 2013 to cover the additional costs associated with the fire mitigation efforts and the increased water treatment costs. Our region is known for its high quality water and the economic impact is significant to our city. Many businesses have located here specifically because our water exceeds drinking water standards. ENVIRONMENTAL IMPACTS The City of Fort Collins, along with two other water providers together serve over 320,000 citizens with high quality drinking water in northern Colorado. In Fort Collins, staff is collaborating with the other agencies to reduce the negative environmental impact. The fire has increased debris in the river, erosion, and the sediment continues to degrade water quality. The City plans to mitigate the areas that have the highest severity by placement of seed and mulch. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BOARD / COMMISSION RECOMMENDATION There has not been sufficient time to present this Ordinance to the Water Board although updates on the situation have been given to the Water Board. The complete mitigation plans will be presented to the Water Board when they are more fully developed. ORDINANCE NO. 098, 2012 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING ADDITIONAL PRIOR YEAR RESERVES IN THE WATER FUND FOR ADDITIONAL HIGH PARK FIRE REMEDIATION WHEREAS, the High Park Fire, which began on June 9, 2012 and ended on July 11, 2012, has affected the Cache la Poudre watershed (the “Watershed”); and WHEREAS, a formal assessment of the impacts of the High Park Fire has been prepared by an interagency Burned Area Emergency Response (“BAER”) team, consisting of the Natural Resources Conservation Agency (“NRCS”), Larimer County (the “County”), the Colorado Department of Transportation (“CDOT”) and the U.S. Forest Service (“USFS”), and was issued on July 17, 2012 (the “BAER Report”); and WHEREAS, considering the severity of the impacts of the High Park Fire, and the resulting potential for increased soil erosion and related cumulative effects from increased peak runoff flows and sediment laden flows, and other related impacts, the BAER Report concluded that the High Park Fire has resulted in emergency conditions for roads, recreation, water diversion infrastructure, water quality degradation, flood hazard, debris flow hazard, and road washout hazard, each of which pose a very high level of risk of major loss to human life, safety and property; and WHEREAS, in addition, the BAER Report identifies other related emergency conditions created by the High Park Fire, such as the risk related to recovery of native vegetation, and identifies a high level of risk to cultural and heritage resources; and WHEREAS, recent rain events have demonstrated the negative effects of erosion in the Watershed and on the Cache la Poudre River (the “Poudre River”), a key water source for the City; and WHEREAS, in view of the foregoing, there is an urgent need for the City and other entities that will experience the impacts identified in the BAER Report to act quickly to mitigate the conditions in the Watershed so as to reduce the potential for these emergency conditions and related risk to human life, safety and property; and WHEREAS, the Watershed is largely located on land not owned by the City; consequently, it is necessary to work with federal and state agencies, the City of Greeley (“Greeley”), the Tri-Districts (Fort Collins-Loveland Water District, East Larimer County Water District, and North Weld County Water District) (the “Districts”), and the County to develop an erosion mitigation plan to effectively address the negative effects of rain, erosion and sediment transport due to rain on the burn area; and WHEREAS, on August 21, 2012, the City Council adopted Emergency Ordinance No. 088, 2012, which appropriated prior year reserves in the Water Fund to allow the City to move forward with Greeley, the Districts and the County to meet the most immediate need by addressing the highest priority area, Hill Gulch, which represents 1,152 acres of the 5,600 acres requiring mitigation; and WHEREAS, upon completion of the mitigation work in the Hill Gulch area, work in the next highest priority areas in the Watershed will need to proceed as quickly as possible in order to reduce the impacts to the Watershed to the extent reasonably possible; and WHEREAS, the Watershed mitigation efforts will continue to be coordinated through the NRCS, which administers a program called the Emergency Watershed Protection (“EWP”) program that is designed to prescribe and facilitate recovery measures that are environmentally and financially sound; and WHEREAS, the City has worked with local, state and federal agencies to secure possible recovery funding; and WHEREAS, on August 21, 2012, the City Council adopted Resolution 2012-079, authorizing two intergovernmental agreements regarding Watershed mitigation in response to the High Park Fire, including the commitment of the funds appropriated by this Ordinance for the above-described immediate response activities; and WHEREAS, City staff has worked to negotiate additional cost-sharing agreements for the ongoing mitigation work in the Watershed; and WHEREAS, there are not currently sufficient City funds appropriated and available to fund ongoing Watershed mitigation efforts in the remaining weeks of the year during which conditions are appropriate for the mitigation work; and WHEREAS, funds are available from the Water Fund prior year reserves for the High Park remediation in the Boyd Gulch area and other high-priority areas; and WHEREAS, Article V, Section 9, of the City Charter 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; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS that there is hereby appropriated from prior year reserves in the Water Fund the sum of TWO MILLION DOLLARS ($2,000,000) for High Park Fire remediation activities as described herein. -2- Introduced, considered favorably on first reading, and ordered published this 4th day of September, A.D. 2012, and to be presented for final passage on the 18th day of September, A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 18th day of September A.D. 2012. _________________________________ Mayor ATTEST: _____________________________ City Clerk -3- RESOLUTION 2012-090 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO SIGN ADDITIONAL INTERGOVERNMENTAL AGREEMENTS REGARDING FUNDING OF CACHE LA POUDRE WATERSHED MITIGATION IN RESPONSE TO THE HIGH PARK FIRE WHEREAS, the High Park Fire, which began on June 9, 2012 and ended on July 11, 2012, has affected the Cache la Poudre watershed (the “Watershed”); and WHEREAS, a formal assessment of the impacts of the High Park Fire has been prepared by an interagency Burned Area Emergency Response (“BAER”) team, consisting of the Natural Resources Conservation Agency (“NRCS”), Larimer County (the “County”), the Colorado Department of Transportation (“CDOT”) and the U.S. Forest Service (“USFS”), and was issued on July 17, 2012 (the “BAER Report”); and WHEREAS, considering the severity of the impacts of the High Park Fire, and the resulting potential for increased soil erosion and related cumulative effects from increased peak runoff flows and sediment laden flows, and other related impacts, the BAER Report concluded that the High Park Fire has resulted in emergency conditions for roads, recreation, water diversion infrastructure, water quality degradation, flood hazard, debris flow hazard, and road washout hazard, each of which pose a very high level of risk of major loss to human life, safety and property; and WHEREAS, in addition, the BAER Report identifies other related emergency conditions created by the High Park Fire, such as the risk related to recovery of native vegetation, and identifies a high level of risk to cultural and heritage resources; and WHEREAS, recent rain events have demonstrated the negative effects of erosion in the Watershed and on the Cache la Poudre River (the “Poudre River”), a key water source for the City; and WHEREAS, in view of the foregoing, there is an urgent need for the City and other entities that will experience the impacts identified in the BAER Report to act quickly to mitigate the conditions in the Watershed so as to reduce the potential for these emergency conditions and related risk to human life, safety and property; and WHEREAS, the Watershed is largely located on land not owned by the City; consequently, it is necessary to work with federal and state agencies, the City of Greeley (“Greeley”), the Tri-Districts (Fort Collins-Loveland Water District, East Larimer County Water District, and North Weld County Water District) (the “Districts”), and the County to develop an erosion mitigation plan to effectively address the negative effects of rain, erosion and sediment transport due to rain on the burn area; and WHEREAS, these Watershed mitigation efforts will be coordinated through the NRCS, which administers a program called the Emergency Watershed Protection (“EWP”) program that is designed to prescribe and facilitate recovery measures that are environmentally and financially sound; and WHEREAS, the City has worked with local, state and federal agencies to secure possible recovery funding; and WHEREAS, at this time, no substantial state or federal funding has been identified for post fire recovery efforts specific to water supplies; and WHEREAS, City staff has worked with representatives of Greeley, the Districts, and the County to develop a plan to move forward with and jointly fund and support that Watershed mitigation work ; and WHEREAS, on August 21, 2012, the City Council adopted Emergency Ordinance No. 088, 2012, appropriating $626,015 in prior year reserves in the Water Fund for High Park Fire mitigation work in the highest priority mitigation area, 1152 acres in size, known as Hill Gulch (the “Hill Gulch Work”); and WHEREAS, on August 21, 2012, the City Council also adopted Resolution 2012-079, authorizing intergovernmental agreements with Greeley, the Districts and NRCS to carry out the Hill Gulch Work; and WHEREAS, the City has entered into an agreement with Greeley and the Districts, and has worked with them, as well as with NRCS, in order to proceed with the Hill Gulch Work, using a reclamation contractor already under contract with Greeley; and WHEREAS, in order to continue progressing with the Watershed mitigation work, which includes reseeding and mulching work on as many of the additional 4,498 acres identified in the BAER Report as critical for stabilization of the Watershed as circumstances allow, the City, Greeley and the Districts have proposed to continue to fund that work in areas of highest priority at shared cost (the “Highest Priority Mitigation Work”); and WHEREAS, the City, Greeley and the Districts expect to continue to share the costs of the Highest Priority Mitigation Work, although specific cost shares for each portion of said Work have not been finally determined; and WHEREAS, on this date, the City Council has adopted on second reading Ordinance No. 098, 2012, appropriating additional prior year reserves in the Water Fund in the amount of $2,000,000, for additional High Park Fire mitigation work; and WHEREAS, in order to provide for cooperative cost sharing with Greeley and the Districts for the Highest Priority Mitigation Work, the City will need to enter into one or more intergovernmental agreements with Greeley and the Districts, to address each individual geographic -2- mitigation area or group of geographic mitigation areas, to the extent funds are available, as the work proceeds (the “Priority Mitigation IGAs”); and WHEREAS, the Priority Mitigation IGAs will provide for the City to be responsible for no more than fifty percent of the costs associated with the Highest Priority Mitigation Work, and will limit the City’s total obligation for that Work to no more than the funds appropriated in Ordinance No. 098, 2012; and WHEREAS, the Priority Mitigation IGAs will require that each portion of the Highest Priority Mitigation Work be conducted in accordance with the requirements of the NRCS in order to ensure eligibility for federal funds, should such funds become available, and will provide for proportional reimbursement to the City in such event; and WHEREAS, in addition, the County has agreed to work with landowners in the Highest Priority Mitigation Work areas in order to obtain the authorizations necessary to carry out the Work; and WHEREAS, the City is authorized to enter into intergovernmental agreements, such as a grant agreement, to provide any function, service or facility, under Article II, Section 16 of the Charter of the City of Fort Collins and Section 29-1-203, C.R.S.; and WHEREAS, the City Council desires that the City enter into one or more Priority Mitigation IGAs, as described herein. NOW, THEREFORE, BE IT RESOLVED BY COUNCIL OF THE CITY OF FORT COLLINS that the Mayor is hereby authorized to execute one or more Priority Mitigation IGAs on behalf of the City, in such specific form and number consistent with the terms of this Resolution as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City or further the purposes of this Resolution. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 18th day of September, A.D. 2012. Mayor ATTEST: City Clerk -3-