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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/19/2013 - FIRST READING OF ORDINANCE NO. 052, 2013, APPROPRDATE: March 19, 2013 STAFF: Lance Smith, Kevin Gertig, Lisa Voytko AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 17 SUBJECT First Reading of Ordinance No. 052, 2013, Appropriating Prior Year Reserves in the Water Fund for the Construction of a Pre-Sedimentation Basin as Part of the High Park Fire Remediation. EXECUTIVE SUMMARY The 2013 Budget for the Water Fund included $987,953 for BFO Offer 244.1 – Fire Mitigation Capital Improvements. After further evaluation of the potential ways capital investment could improve the ability of Fort Collins Utilities to treat water from the Cache la Poudre watershed, a pre-sedimentation basin is being constructed. The total cost of this basin will be $2,150,000. This Ordinance appropriates $1,250,000 from the Water Fund reserves so that the construction of the pre- sedimentation basin can be completed and operational before June 2013. BACKGROUND / DISCUSSION The High Park Fire, which began on June 9, 2012 and ended on July 11, 2012, has severely affected the Cache la Poudre watershed. The City has a large vested interest in the quality of water in the Poudre River. Since the fire, the water quality after any rain or snow melt has been, and will continue to be, challenging to treat. This pre- sedimentation basin is designed to remove sediment from the water before it is treated for our community. The pre-sedimentation basin, currently under construction, is located at the Munroe Turnout at the Pleasant Valley Pipeline. The sediment removal from the basin will allow for a more consistent raw water quality coming into the plant, which is beneficial for determining chemical additions, process control and other treatment strategies. It will also remove sediment that is normal in the river during the spring run off season, where debris is carried into the water treatment facility pipelines and affects treatment. Given the current drought conditions, being able to treat as much water as possible from both of the major watersheds serving Fort Collins Utilities customers is vital to meeting the community’s water needs in 2013. Staff will continue to update the City Council and community as more information becomes available. 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 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. Without this pre-sedimentation basin it may not be possible to treat water from the Poudre River at times this summer which could require tighter water restrictions. Tighter restrictions could, in turn, have some financial impact on the commercial customers served by Fort Collins Utilities as well as a loss of revenue to the utility itself. With this capital investment it may be possible to avoid tighter water restrictions and minimize the associated potential financial impacts to the community. By appropriating funds out of the Water Fund reserves, this capital investment can be recovered through rates over several years rather than immediately. ENVIRONMENTAL IMPACTS March 19, 2013 -2- ITEM 17 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. The ability to treat the Poudre River water, regardless of the raw water quality, is vital to the City’s water supply and demand policy. The basin will also facilitate removal of the sediment from the river system, which will reduce the negative impact on downstream users of the river system. STAFF RECOMMENDATION Staff recommends adoption of this 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 preliminary planning have been given to the Water Board. ORDINANCE NO. 052, 2013 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING PRIOR YEAR RESERVES IN THE WATER FUND FOR THE CONSTRUCTION OF A PRE-SEDIMENTATION BASIN AS PART OF THE 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, due to the effects of the High Park Fire and current drought conditions, the pre-sedimentation basin (the “Basin”) would provide the City the ability to treat as much water as possible from both of the major watersheds to meet the community’s water needs in 2013; and WHEREAS, the quality of the water in the Poudre River is critically important to the City; and WHEREAS, the Basin could effectively remove ash and sediment from the watershed before it is treated for use by the community; and WHEREAS, sediment removal from the Basin will allow for a more consistent raw water quality coming into the treatment plant, which is beneficial for determining chemical additions, process control, and other treatment strategies; and WHEREAS, without the Basin, it may not be possible to properly treat water from the Poudre River at times this summer, and that circumstance could require tighter water restrictions which, in turn, would have a financial impact on the commercial customers served by the Fort Collins Utilities; and WHEREAS, the requested reserves of $1,250,000 would be allocated towards the construction of the Basin ($2,150,000) so that it may be completed and operational before June 2013; and WHEREAS, the Basin is located at the Munroe Turnout at the Pleasant Valley Pipeline; and WHEREAS, by appropriating funds out of the Water Fund reserves, this investment can be recovered through rates over several years rather than immediately; 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 ONE MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS ($1,250,000) for the construction of a pre-sedimentation basin as part of the continued remediation of the High Park Fire. Introduced, considered favorably on first reading, and ordered published this 19th day of March, A.D. 2013, and to be presented for final passage on the 16th day of April, A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk Passed and adopted on final reading on the 16th day of April A.D. 2013. _________________________________ Mayor ATTEST: _____________________________ City Clerk -2-