HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/18/2014 - RESOLUTION 2014-025 AUTHORIZING THE RETENTION OF AAgenda Item 18
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AGENDA ITEM SUMMARY March 18, 2014
City Council
STAFF
Lucinda Smith, Environmental Sustainability Director
Laurie Kadrich, Community Development & Neighborhood Services Mgr
Steve Roy, City Attorney
SUBJECT
Resolution 2014-025 Authorizing the Retention of a Consultant to Recommend Appropriate Studies That Will
Help the City Determine the Impacts that Hydraulic Fracturing and the Storage of its Waste Products May
Have on Property Values and Human Health in the City of Fort Collins or on Lands Under its Jurisdiction.
EXECUTIVE SUMMARY
Ballot Measure 2A, passed by Fort Collins voters in November 2013, places a five year moratorium on
hydraulic fracturing and the storage of its waste products within the City of Fort Collins or on lands under its
jurisdiction, in order to fully study the impacts of this process on property values and human health. The
purpose of this item is to seek City Council authorization to proceed with hiring an outside consultant to help
the City evaluate the way in which the City should carry out its responsibilities under Ballot Measure 2A to
study these issues. Multiple studies are available for consideration. The consultant’s help is needed to: (1)
help evaluate relevant studies; (2) identify gaps in the data that will be provided by existing and upcoming
studies, (especially as relevant for Fort Collins local land use patterns, hydrogeology, and existing local oil and
gas exploration and production methods); and (3) identify ways to fill those gaps.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
Background
On August 20, 2013, City Council placed a citizen-initiated ordinance on the November 5 ballot that imposed a
5-year moratorium on hydraulic fracturing and the storage of its waste products in Fort Collins. (See
Attachment 1).
The ballot language states:
“An ordinance placing a moratorium on hydraulic fracturing and the storage of its waste
products within the City of Fort Collins or on lands under its jurisdiction for a period of five
years, without exemption or exception, in order to fully study the impacts of this process on
property values and human health, which moratorium can be lifted upon a ballot measure
approved by the people of the City of Fort Collins and which shall apply retroactively as of the
date this measure was found to have qualified for placement on the ballot.”
The initiative was passed by the 56.4% of the voters of Fort Collins on November 5, 2013.
Outside Expertise Regarding Studies
The purpose of the moratorium is to enable the City to “fully study the impacts of… hydraulic fracturing and the
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storage of its waste products within the City of Fort Collins or on lands under its jurisdiction… on property
values and human health”. At the end of the study period, staff and Council will be in a better position to
assess the potential magnitude of the impacts that hydraulic fracturing may have on City residents, the need
for local land use regulations to mitigate those impacts, and the extent of the City’s legal authority to enact
such regulations.
There are a number of upcoming regional oil and gas studies that may yield pertinent data about
environmental and public health impacts over the next several years. While these studies will yield new
information specific to hydraulic fracturing, hundreds (perhaps thousands) of existing oil and gas studies and
human health and environmental risk assessments already exist that reveal a great deal of information about
potential environmental and human health impacts.
Given the large number of existing and planned studies, and the substantial cost associated with conducting
studies, a potential first step for the City would be to hire an outside consultant to help evaluate relevant
studies, identify gaps in data from existing and upcoming studies, (especially as relevant for Fort Collins local
land use patterns, hydrogeology, and existing local oil and gas exploration and production methods), and
recommend ways to fill those gaps.
The City proposes to seek outside expertise in human health and ecological risk assessments, interpretation of
existing public health studies, environmental studies, risk assessments, remediation site characterizations, and
economic conditions insofar as such conditions may affect property values.
The process for procuring the services in question is complicated by the fact that the Colorado Oil and Gas
Association has filed suit against the City, seeking to have the voter-approved moratorium invalidated.
Therefore, the expert retained by the City will likely serve not only as a consultant for the purposes of
implementing Ballot Measure 2A but also as an expert witness in the litigation. Because of this potential
dual role, staff is recommending that the consultant be retained for the purpose of providing “litigation
services” within the meaning of the City Procurement Code, rather than “professional services.” The
significance of this difference is that litigation services are procured by the City Attorney and not through a
competitive process. In this situation, however, management staff, the City Attorney’s Office and outside
counsel would work together to make the selection, and would seek input from the citizen groups who
have sought to intervene in the above referenced litigation.
Desired Deliverables for Phase I
Summary of existing data and information that are relevant to Ballot Measure 2A (e.g. the impacts that
hydraulic fracturing and the storage of its waste products may have on human health and property values).
Summary of possible future sources of data and information relevant to Ballot Measure 2A.
Identification of anticipated contaminants of concern for current and possible future oil and gas exploration
and production relevant to Ballot Measure 2A.
Qualitative ranking of relative risks to human health and natural resources from existing and possible
future oil and gas activities relevant to Ballot Measure 2A.
Identification of data gaps in the studies in terms of their relevance to Fort Collins’ local land use patterns,
hydrogeology, and existing and possible future local oil and gas exploration and production, and
recommendations on ways to fill those data gaps.
Proposed Timeline for Phase I
March 18 City Council considers a resolution authorizing the City to seek outside expertise
April Consultant selection complete
July Consultant/team recommendation due
Proposed Phase II - not to be contracted at this time
Additional funding may be needed for other consultant services toward the end of the moratorium period as the
results from regional studies are becoming available in order to further evaluate their applicability to Fort
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Collins. Depending on the results available at the time, the need for more data, desire for consultation on
management of environmental liabilities, interest in conducting stakeholder engagement, and/or desire to
perform a determinist risk assessment, these activities could cost a few hundred thousand dollars.
FINANCIAL / ECONOMIC IMPACT
$50,000 has been identified in the City’s existing budget to cover expenses associated with Phase I. It is the
City’s hope that the deliverables described above could be provided for less.
ENVIRONMENTAL IMPACTS
There are no direct environmental impacts associated with retaining outside expertise to evaluate studies
relevant to Ballot Measure 2A, other than the minimal impacts associated with driving by the consultant/team
and use of materials (paper, etc.) related to their work.
BOARD / COMMISSION RECOMMENDATION
Due to the urgent nature of obtaining Council direction on whether/how the City should proceed in obtaining
outside expertise to help evaluate relevant studies, identify gaps, and recommend approaches for filling the
gaps, boards and commissions were not engaged on this topic.
PUBLIC OUTREACH
Due to the urgent nature of obtaining Council direction on whether/how the City should proceed in obtaining
outside expertise to help evaluate relevant studies, identify gaps, and recommend approaches for filling the
gaps, public outreach was not conducted.
ATTACHMENTS
1. Resolution 2013-072 (PDF)
2. Powerpoint presentation (PDF)
1
Resolution Regarding Consultant
Assistance with Oil and Gas
Studies Related to
Ballot Measure 2A
City Council Meeting
March 18, 2014
1
Ballot Measure 2A
2
Passed November 2013:
• 5 year moratorium on hydraulic
fracturing and the storage of its
waste products
• within the City of Fort Collins or on
lands under its jurisdiction
• in order to fully study
• the impacts of this process on
property values and human health
ATTACHMENT 2
2
Need for Outside Expertise
3
• Evaluate existing and planned
relevant studies
• Identify gaps in data to address
Ballot Measure 2A
• Identify ways to fill those gaps
• Provide consultation to legal
counsel regarding the studies
Procurement Process
4
Hired by City Attorney’s Office as “litigation
services” with input from affected City staff,
after outreach to citizen groups who seek to
intervene in litigation
Anticipated cost: $20,000 - $50,000
• Identified in existing City budget
3
Proposed Timeframe
5
March – Council consider authorization
April – Consultant selection completed
July – Consultant report submitted
Resolution 2014-025
6
Authorize City Attorney to retain the services of a
qualified consultant to assist the City in identifying
the kinds of studies that should be undertaken or
otherwise relied upon by the City in order to fully
study the impacts that hydraulic fracturing and the
storage of its waste products may have on human
health and property values
Directs City Manager to present to Council:
• recommendations on studies the City should
participate in or otherwise utilize (and reasoning),
• estimate of the anticipated cost to the City, and
• an appropriate funding source
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RESOLUTION 2014-025
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE RETENTION OF A CONSULTANT TO RECOMMEND
APPROPRIATE STUDIES THAT WILL HELP THE CITY DETERMINE THE IMPACTS
THAT HYDRAULIC FRACTURING AND THE STORAGE
OF ITS WASTE PRODUCTS MAY HAVE ON PROPERTY VALUES AND HUMAN
HEALTH IN THE CITY OF FORT COLLINS AND ON LANDS UNDER ITS
JURISDICTION
WHEREAS, on November 5 2013, the registered electors of the City approved, at a
special election of the City, a measure that imposed a five-year moratorium on hydraulic
fracturing and the storage of its wastes products in the City and on lands under the jurisdiction of
the City (“Ballot Measure 2A”); and
WHEREAS, the purpose of the moratorium is to allow sufficient time for the City to fully
study the impacts that this process may have on human health and property values; and
WHEREAS, City staff has investigated the kinds of studies that may be suitable for the
City to conduct or utilize in carrying out the purposes of the moratorium, and has identified a
number of upcoming regional oil and gas studies that may yield pertinent data; and
WHEREAS, staff has recommended that, in view of the large number of such studies that
warrant consideration, it would be advisable for the City to retain an outside consultant with
expertise in this area to: (1) help evaluate relevant studies; (2) identify gaps in the data that will
result from the those studies in terms of their relevance to Fort Collins’ local land use patterns,
hydrogeology, and existing and potential local oil and gas exploration and production methods;
and (3) recommend ways to fill those gaps; and
WHEREAS, sufficient funds have been appropriated and are available for this purpose;
and
WHEREAS, the City Attorney has recommended that, because Ballot Measure 2A is
currently the subject of litigation, and because the consultant’s services and reports could
become relevant to such litigation, the consultant’s services should be considered as “litigation
services” within the meaning of the City’s procurement policies and Article V, Division 1 of
Chapter 8 of the City Code, and that the City Attorney and outside counsel for the City should
ultimately decide which consultant should be selected, after conferring with the City Manager,
affected members of City staff, and the citizen groups who have sought to intervene in the above
referenced litigation; and
WHEREAS, the City Council concurs with the foregoing recommendations.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS as follows:
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Section 1. That the City Attorney is hereby authorized and directed to retain the
services of a qualified consultant to assist the City in identifying the kinds of studies that should
be undertaken or otherwise relied upon by the City in order to fully study the impacts that
hydraulic fracturing and the storage of its waste products may have on human health and
property values in the City and on lands under its jurisdiction.
Section 2. At such time as City staff has developed a recommendation as to which
studies the City should undertake, participate in or otherwise utilize in order to carry out its
responsibilities under Ballot Measure 2A, the City Manager and City Attorney are further
directed to present that recommendation to the City Council, together with staff’s reasoning in
support of the recommendation and an estimate of the anticipated cost to the City and an
appropriate funding source for paying those costs.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this
18th day of March, A.D. 2014.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk