HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/04/2001 - SECOND READING OF ORDINANCE NO. 134, 2001, AUTHORI AGENDA ITEM SUMMARY ITEM NUMBER: 16
DATE: September 4, 2001
FORT COLLINS CITY COUNCIL FROM: Gale McGaha Miller
Michael B. Smith
SUBJEQiTbnd Reading of Ordinance No. 134, 2001, Authorizing the Conveyance of Approximately
360 Acres of Land on the Former Rockwell Ranch to the United States Forest Service in
Exchange for the Conveyance to the City of the Land Underlying Joe Wright Reservoir, Subject
to a Non-exclusive Conservation Easement for Use of the Reservoir Property by the Public and
the Colorado Division of Wildlife.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on Second Reading.
EXECUTIVE SUMMARY:
In 1996, the City Council directed staff to pursue an exchange of the City-owned Rockwell
properties for the land under and around the City's Joe Wright Reservoir owned by the United
States Forest Service (USFS). At that time there was concern expressed by the Natural
Resources Advisory Board (NRAB) that the exchange be made utilizing the USFS's
administrative procedure instead of a legislative solution being promoted by the City of Greeley,
Water Supply and Storage Company, and the Water Board. The NRAB was concerned that the
legislative process would preempt the necessary environmental reviews. The Council, after
considerable discussion, directed staff to utilize the USFS's administrative procedure. Since that
time, staff has worked with the USFS and the United States Fish and Wildlife Service in
processing the land exchange using the administrative procedure, including all of the necessary
environmental assessments and reviews. Ordinance No. 134, 2001, was unanimously adopted
on First Reading on August 21, 2001.
AGENDA ITEM SUMMARY ITEM NUMBER: 28
DATE: August 21,2001
FORT COLLINS CITY COUNCIL Gale McGaha Miller
16 STAFF: Michael B. Smith
SUBJECT:
First Reading of Ordinance No. 134, 2001, Authorizing the Conveyance of Approximately 360 Acres of Land
on the Former Rockwell Ranch to the United States Forest Service in Exchange for the Conveyance to the City
of the Land Underlying Joe Wright Reservoir, Subject to a Non-exclusive ConservaA Easement for Use of
the Reservoir Property by the Public and the Colorado Division of Wildlife.
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RECOMMENDATION:
Staff, the Water Board and the Natural Resources Advisory Boar&recommend adoption of the
Ordinance on First Reading. '
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FINANCIAL IMPACT:
This land exchange will require that the City pay $22,000 to equalize the land values between
US Forest Service land (Joe Wright Reservoir) and three parcels of City land (Rockwell Ranch).
Additionally, the biological opinion issued by the US Fish and Wildlife Service requires a one-
time lump sum payment of$61,288.to the_Fish and Wildlife Foundation to comply with Federal
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requirements to participate in,the�outh'Platte Recovery Program. Appropriations are available
for this purpose in the Water-Fund. A subsequea` 'sale of a foul ,parcel of Rockwell Ranch will
place the last parcel of Rockwell Ranch in Forest Service ownership and add approximately
$353,500 of revenue to the Water Fund.
EXECUTIVE SUMMARY:
In 1996, the City Council directed staff to pursue an exchange of the City-owned Rockwell
properties for the land under and around the City's Joe Wright Reservoir owned by the United
States Forest Service (USFS). At that time there was concern expressed by the Natural
Resources Advisory Board (NRAB) that the exchange be made utilizing the USFS's
administrative procedure instead of a legislative solution being promoted by the City of Greeley,
Water Supply and Storage Company, and the Water Board. The NRAB was concerned that the
legislative process would preempt the necessary environmental reviews. The Council, after
considerable discussion, directed staff to utilize the USFS's administrative procedure. Since that
time, staff has worked with the USFS and the United States Fish and Wildlife Service in
processing the land exchange using the administrative procedure, including all of the necessary
environmental assessments and reviews. This Ordinance is supported by the NRAB and Water
Board and calls for the following actions:
• Approval of the land exchange involving the acquisition of Joe Wright Reservoir property
owned by the USFS in exchange for Rockwell Ranch parcels A, C, and D owned by the City
with a payment of$22,000 by the City to equalize land values.
DATE: August 21,2001 2 ITEM NUMBER: 28
• Approval of a one-time lump sum payment of$61,288 by the City to the Fish and Wildlife
Foundation to comply with Federal requirements to participate in the South Platte Recovery
Program.
• Approval of the granting of a conservation easement to the Federal government for the Joe
Wright property to ensure that current operational conditions are maintained.
BACKGROUND:
In the 1920's the Cities of Fort Collins and Greeley jointly acquired various parcels of land near
the upper Cache la Poudre River known as Rockwell Ranch. The intent of this purchase was that
the land would someday serve as a site for one or more water storage reservoirs. As years
passed, it became apparent that these parcels were not well placed as reservoir sites. In 1997, the
parcels were divided out between the two cities so that each individually owned its own parcel.
Today this land is surrounded by National Forest and in some cases Forest Service Wilderness
Lands.
Fort Collins Utilities ("Utilities") has used Joe Wright Reservoir as a water storage facility since
1977. While the City owns the water rights, dam, and other aspects of the facility, it does not
own the land beneath the reservoir; the USFS has owned the land since 1917. USFS has granted
to the City permission to operate the reservoir on its land through an easement that spells out
details of the operation and management of the facility. However, the Utilities has found that
negotiating such easements can be anarduous and uncertain process, and it prefers to own the
land beneath the reservoir outright. Likewise, USFS operates-the Kelly Flats Campground on
one of the parcels of Rockwell Ranch owned bythe City. While it, too, operates under a long-
term lease, USFS would prefer to own that land outright. The remaining parcels of Rockwell
Ranch are inholdings surrounded by USFS lands, and the USFS also desires to gain ownership of
those parcels.
In 1996, the City Council`adopted Resolution 96-26 which directed staff to pursue a land
exchange with the USFS, utilizing the USFS's administrative process. The USFS agreed to
pursue a land exchange that would deed ownership of the land beneath Joe Wright Reservoir to
the City in exchange for land of equal value in the City's Rockwell Ranch parcels. In 1997, the
ownership of Rockwell Ranch, which was previously shared with the City of Greeley, was
formally divided between the two cities so that this exchange could occur. At that time, water
rights associated with Rockwell Ranch were also divided equally between the two cities. The
intent for the water rights was that, upon completion of the land exchange, the conditional
storage decree for 4,900 acre feet of water for the Rockwell Reservoir would be declared
abandoned by the City and the absolute 1888 direct flow water rights totaling 5.95 cfs would be
conveyed to the Colorado Water Conservation Board for the maintenance of an instream flow.
The Water Board and NRAB support these actions.
Since that time, Utilities staff and the USFS have been working on the land exchange. The
process involves over sixty steps, including public input, surveys, appraisals, and assessments of
environmental, biological and archeological impacts. The Utilities and USFS have completed all
steps of this process, with the USFS issuing a favorable Environmental Assessment in May
2001.
DATE: August 21, 2001 3 ITEM NUMBER: 28
The U.S. Fish and Wildlife Service (USFWS) has reviewed a biological assessment report on the
land exchange and issued a draft biological opinion with a decision notice to proceed and
"Finding, of No Significant Impact" (FONSI). The draft opinion calls for a guarantee of the
Utilities' ongoing participation in the South Platte Recovery Program. The Utilities' current
required participation in the Interim South Platte Recovery Plan calls for contributing an annual
payment of $4,903 to the Fish and Wildlife Foundation. The reason for this required
participation is due to presumed impacts caused by depletions from Joe Wright Reservoir on
Platte River flows far downstream in Central Nebraska. In order to accomplish ongoing
participation in the recovery program, the USFWS agreed to a one-time lump sum payment to
assure that, through interest on that payment, the City's share in the Recovery Plan would be
paid in perpetuity. This will be a final, permanent solution so that the land exchange can move
forward. A payment of$61.288 is the amount that, if invested in long-term treasury notes (8%)
will yield the required $4,903 per year on a continual basis (simple interest only), which is the
amount attributable to the City's presumed depletions.
In addition to the issue of depletions, concerns were raised about the ongoing use of Joe Wright
Reservoir as a fishery and as habitat for the greenback cutthroat trout. To address these
concerns, a conservation easement has been drafted with the Federal government as grantee.
The conditions of the easement maintain the operating procedures and agreements currently in
effect and do not add any new conditions for operating the reservoir. The easement stipulates
that the City will maintain a 687 acre-foot conservation pool in the reservoir for the protection of
the trout. It also allows continued sport fishing, pedestrian access, and the use of hand propelled
or electric trolling boats. It requires that the City maintain a minimum water flow in Joe Wright
Creek. The easement allows the Colorado Department of Wildlife access to manage the
lip reservoir as a fishery and to perform research at an existing spawning bed. Finally, the easement
indicates that the City will make reasonable`efforts to continue to participate in the Joint
Operations Plan between the City, Water Supply and Storage, and the City of Greeley.
The original intent of the land exchange was for the City to convey parcels to the USFS equal in
value to the Joe Wright property. The appraisals show that the four Rockwell Ranch parcels
owned by the City have a much higher monetary value than the Joe Wright property. The
property is comprised of four parcels: A, B, C and D. The land values are as follows:
Parcel A, 40 acres $ 216.000
Parcel B, 157.09 acres$ 350,000
Parcel C, 160 acres $ 288,000
Parcel D. 160 acres $ 288,000
Total 517.09 acres $1,142,000
The 203.51 acres at Joe Wright property appraised at $814,000.
USFS proposes to exchange Joe Wright for Parcels A, C, and D, which total $792,000 in value.
The difference in value between Joe Wright and these three parcels is $22,000, which the City
would pay at closing.
lipUSFS cannot pay cash for the remaining parcel B at this time due to statutes limiting the amount
of cash it can spend for a land exchange. The USFS plans to acquire Parcel B in a future three-
way land exchange with Winter Park Recreation Association, in which Winter Park would
purchase Parcel B and then use it in a land exchange with the USFS. Once that exchange is
DATE: August 21,2001 4 ITEM NUMBER: 28
complete, Parcel B will be owned by the USFS and Winter Park will have paid the City
approximately$350,000 for the property.
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