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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/24/2017 - NORTHERN INTEGRATED SUPPLY PROJECT UPDATEDATE: STAFF: January 24, 2017 John Stokes, Natural Resources Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Northern Integrated Supply Project Update. EXECUTIVE SUMMARY The purpose of this item is to provide an update to Council regarding the City’s activities since June 2016 with respect to the Northern Integrated Supply Project. Based on Council direction on June 14, 2016, staff met with Northern Water (Northern) several times to discuss two issues in particular, peak flows and the potential impacts of the new “conveyance refinement” on City infrastructure (see below for additional background). This agenda item summary also briefly describes the resolution staff will bring to Council for its consideration on February 7. The resolution recommends moving beyond discussion with Northern into negotiations. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. Does Council have any advice, questions, thoughts, or concerns regarding the work to date or the proposed resolution? BACKGROUND / DISCUSSION The Northern Integrated Supply Project (NISP) is a municipal water supply project designed and sponsored by the Northern Colorado Water Conservancy District (Northern Water) and fifteen municipalities and water districts, including the Fort Collins-Loveland Water District (FCLWD), a municipal water provider serving a portion of Fort Collins. NISP would involve substantial diversions of water from the Poudre River. The United States Army Corps of Engineers (Corps) must issue a permit before the project may proceed to construction. In addition, the project must receive a water quality certification from the Colorado Department of Health and the Environment (CDPHE), an approved State Wildlife Mitigation Plan, and approval from Larimer County under its “1041” regulations. The preferred alternative under review by the Corps (as well as three additional alternatives) would divert water from the Poudre River below the canyon mouth and above Fort Collins, thereby reducing flows through town. Under the preferred alternative, water from these upstream diversions would be stored in Glade Reservoir northwest of Fort Collins. In 2008, City Council endorsed a set of comprehensive comments to the Corps regarding the NISP Draft Environmental Impact Statement. Council also adopted Resolution 2008-002, stating that it opposed NISP as it was described at the time. The Corps then decided to issue a Supplemental Draft Environmental Impact Statement (SDEIS) that describes the proponents’ preferred alternative (as well as three additional alternatives). It was published on June 19, 2015. In September 2015, the City submitted comments and adopted Resolution 2015-082 (see attachment), stating that it could not support NISP as described “with the understanding that City Council may reach a different conclusion with respect to a future variant of NISP….” The next permitting steps will include the release of a Final Environmental Impact Statement, a water quality certification, and a State-approved Wildlife Mitigation Plan. These permitting steps are planned to be completed in the coming year. Assuming timelines are met, the Corp would issue a Record of Decision to either approve or deny the project. Northern Water recently announced a modification to its preferred alternative (the so-called “conveyance refinement”) that would deliver more water through the Poudre River at certain times from near the mouth of the January 24, 2017 Page 2 canyon to a location just upstream of the outfall of the City’s Mulberry Water Reclamation Facility (MWRF) near Lemay and Mulberry. A variation of the conveyance refinement could deliver the water farther downstream to a location near the City’s Nix Farm facility, provided the City were to agree to move the outfall of the MWRF from its current location to a location farther downstream (Attachment 1). From the City’s perspective, the conveyance refinement potentially poses certain advantages over previous versions of NISP. For example, the new proposal does not include a pipeline and water delivery from the proposed Glade Reservoir to Horsetooth Reservoir, thereby alleviating some of the City’s concerns over the pipeline’s impacts on reservoir water quality. The new proposal also would deliver water to the Poudre River during low flow periods, which is likely to eliminate dry-ups to certain sections of the river and be beneficial to the fish and general health of the river. The new proposal, however, does not address other key concerns, in particular the fact that peak flows on the Poudre River will be significantly reduced, which has long-term negative consequences for habitat, as well as potential impacts related to flood related safety concerns. Moreover, there continue to be concerns related to Poudre River water quality. In short, the conveyance refinement raises a number of issues that require consideration by the City. If the discharge point for the MWRF were to be relocated as part of NISP’s conveyance refinement, it may affect the ability of the City to meet National Pollutant Discharge Elimination System (NPDES) permit regulations. Thus, Fort Collins staff met with Northern several times to discuss how this impact might best be reviewed and understood. Northern Water has offered to fund a study by a third party consultant retained by the City to evaluate what impacts, if any, the conveyance refinement would have on the City’s permit to discharge treated effluent from the MWRF to the river. Staff developed an intergovernmental agreement (IGA) for funding a study of the relocation, which, unless there are policy concerns from City Council, could be executed by the City Manager. Staff intends to submit the IGA to the City Manager in the near future. Regarding peak flows, the essential driver of river health, staff met with Northern twice to share and discuss concepts developed by staff and consultants. Working with an engineering consultant and using the City’s science-based analysis of peaking flows, staff developed peak flow scenarios that could be implemented if NISP is built. The information is crucial to the ability of the City to influence decision makers such as the Army Corp of Engineers and the State of Colorado as they consider mitigation strategies. It is especially important with respect to the State’s Fish and Wildlife Mitigation Plan, which is planned for completion this year. Please note that Northern will submit this Plan to Colorado Parks and Wildlife for its review later this spring. Without a fundamental technical understanding as to how NISP could be operated to achieve the City’s peak flow objectives, it is likely the City would have little to no credibility with the regulatory agencies. Lastly, staff will bring forward a resolution for Council’s consideration on February 7 that contemplates authorizing staff to: “to explore the City’s and the District’s mutual interests in order to ascertain whether those interests can be met, including through potential agreements between the City and Northern regarding the City’s and the District’s goals and issues related to NISP…” The proposed resolution does not propose to change the City’s position regarding NISP as currently set forth in Resolution 2015-082. In staff’s view the proposed motion represents a tactical shift and an evolution from Council’s June 2016 direction to staff to engage in discussions, but not negotiations. Staff plans a full presentation regarding the proposed resolution at the February 7 Council meeting. Synopsis of Recent NISP Activity and Anticipated Timeline September 2015 Supplemental SDEIS comment period ended. City submits comments and passes resolution 2015-082 June 2016 Council authorizes staff to engage in discussions January 24, 2017 Page 3 Fall 2016 Staff develops a scope of work for a study on the feasibility of moving the Mulberry Waste Reclamation Facility discharge and a draft IGA. Staff develops an approach to peak flow management. Staff meets and discusses both items with Northern. January 2017 Council will hold a work session to discuss NISP activities since June 2016. February 2017 Council will consider a proposal to authorize staff to negotiate with Northern Water. Spring 2017 Northern developing final ideas to include in State Fish and Wildlife mitigation plan and present to Colorado Parks and Wildlife for its review/approval. Plan is to complete approval of this mitigation plan by end of 2017. End of 2017 Final Environmental Impact Statement anticipated. ATTACHMENTS 1. NISP Project Configuration Modification (PDF) 2. June 14, 2016 Work Session Summary (PDF) 3. Resolution 2015-082 (PDF) 4. Draft of Proposed Resolution for Council consideration on February 7, 2017 (PDF) 5. Powerpoint presentation (PDF) Fort MasterDowntown Collins Plan Poudre Reach River - 3 River Miles Enhanced Flow Poudre River - 12 River Miles < @ Canyon Gage Lincoln Gage < @ NISP Delivery Pipeline (Route Approximate) NISP (PipelineRoute River Approximate) Delivery Glade Reservoir River Release Point Timnath Res. Inlet Sources: GeoBase, Esri, IGN, HERE, Kadaster DeLorme, NL, Ordnance Intermap, Survey, increment Esri Japan, P Corp.METI, , GEBCO, Esri China USGS, (Hong FAO, Kong)NPS, , NRCAN, swisstopo, MapmyIndia, © OpenStreetMap contributors, and the GIS User Community . 0 0.5 1 2 3 4 Miles cjb 3/25/2016 Northern Project Configuration Integrated Supply Modification Project 0 100,000 200,000 Average Overall Dry-Average Year Annual Flow (af) 0 50,000 100,000 Average Overall Dry-Average Year Annual Flow (af) 0 50,000 100,000 Average Overall Dry-Average Year Annual Flow (af) Key NExISisPting SDEIS NISP w/ D/S Diversion ATTACHMENT 2 ATTACHMENT 3 PRELIMINARY DRAFT – LEGAL REVIEW PENDING -1- RESOLUTION 2017-___ OF THE COUNCIL OF THE CITY OF FORT COLLINS DIRECTING THE CITY MANAGER OR HIS DESIGNEES TO MEET WITH THE NORTHERN COLORADO WATER CONSERVANCY DISTRICT TO ENGAGE THE NORTHERN INTEGRATED SUPPLY PROJECT WHEREAS, the Northern Colorado Water Conservancy District (“Northern Water”) is pursuing the Northern Integrated Supply Project (“NISP”), a water storage and supply project that would divert significant amounts of water from the Cache la Poudre River upstream of Fort Collins; and WHEREAS, to move forward with the necessary federal permitting for NISP, the Northern Water is required by the National Environmental Policy Act (“NEPA”) to complete an environmental impact review process, conducted in this case by the U.S. Army Corps of Engineers (“Corps”) as the permitting agency under the federal Clean Water Act; and WHEREAS, as part of the review process, on April 30, 2008, the Corps issued a draft Environmental Impact Statement (“DEIS”), and the City timely submitted comments to the DEIS on September 10, 2008 pursuant to Resolution 2008-002; and WHEREAS, as part of the review process, on June 19, 2015, the Corps issued a supplemental draft Environmental Impact Statement (“SDEIS”), and the City timely submitted comments to the SDEIS on September 2, 2015 pursuant to Resolution 2015-082; and WHEREAS, the Northern Water has recently made public modifications to the preferred alternative for NISP that would affect the amount of water flowing in the Cache la Poudre River through portions of Fort Collins, which raises various issues for the City; and WHEREAS, it will be to the benefit of the City to have designated staff members meet on a regular basis with the Northern Water regarding NISP and the City’s concerns, and to explore the City’s and the Northern Water’s mutual interests in order to ascertain whether those interests can be met, including through potential agreements between the City and Northern regarding the City’s and the Northern Water’s goals and issues related to NISP; and WHEREAS, such meetings and discussions will not change the City’s position regarding NISP, as currently set forth in Resolution 2015-082, and will not bind the City without subsequent action from City Council. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Council hereby makes and adopts the determinations and findings contained in the recitals set forth above. PRELIMINARY DRAFT – LEGAL REVIEW PENDING -2- Section 2. That the City Manager is hereby authorized and directed to meet on a regular basis with the Northern Water regarding NISP and to discuss and explore the City’s and the Northern Water’s mutual interests in order to ascertain whether those interests can be met, including through potential agreements between the City and Northern regarding the City’s and the Northern Water’s goals and issues related to NISP. The City Manager may designate certain qualified staff members for such discussions. Section 3. That the discussions of the City Manager and his designees with the Northern Water regarding NISP shall focus on the following key goals and issues, which are listed in no particular order: (a) A reduction of water quality and other adverse impacts, to the extent possible, to the City’s water supplies that are used by the City to meet treated and untreated water demands; (b) A reduction of water quality and other adverse impacts, to the extent possible, to the City’s wastewater treatment facilities; (c) A reduction of adverse impacts, to the extent possible, to the ecology of the Cache la Poudre River from the point of diversion for NISP to the location where the river crosses Interstate 25; (d) A reduction of adverse impacts, to the extent possible, to the ability of the Cache la Poudre River to adequately convey storm and flood waters; (e) A reduction of adverse impacts, to the extent possible, to the aesthetic and recreational attributes of the Cache la Poudre River from the point of diversion for NISP to the location where the river crosses Interstate 25; and (f) A reduction, to the extent possible, of NISP’s diminishment of “peak flows” in the Cache la Poudre River from the point of diversion for NISP to the location where the river crosses Interstate 25. The City Manager and his designees shall be guided by the concerns are more fully expressed in the comments provided pursuant to Resolution 2008-002 and Resolution 2015-082, in addition to such other information and investigations that are prudent and further the purposes of this resolution. The above list shall not preclude the City Manager and his designees from discussing related matters that further the purposes of this resolution. Section 4. That the City Manager and his designees shall report back to City Council regarding such discussions at regular intervals. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 7th day of February, A.D. 2017. PRELIMINARY DRAFT – LEGAL REVIEW PENDING -3- __________________________________ Mayor ATTEST: _____________________________ City Clerk 1 City Council January 24, 2017 Northern Integrated Supply Project Status and Proposed Approach ATTACHMENT 5 2 3 Synopsis 4 September 2015 Supplemental SDEIS comment period ended. City submits comments and passes resolution 2015-082 June 2016 Council authorizes staff to engage in discussions Fall 2016 Staff develops a scope of work for a study on the feasibility of moving the Mulberry Waste Reclamation Facility discharge and a draft IGA. Staff develops an approach to peak flow management. Staff meets and discusses both items with Northern. January 2017 Council will hold a work session to discuss NISP activities since June 2016. February 2017 Council will consider a proposal to authorize staff to negotiate with Northern Water. Spring 2017 Northern developing final ideas to include in State Fish and Wildlife mitigation plan and present to Colorado Parks and Wildlife for its review/approval. Plan is to complete approval of this mitigation plan by end of 2017. End of 2017 Final Environmental Impact Statement anticipated. Peak Flows 5 With NISP every 12 years With proposed bypass every 4 years 3,300 CFS Conveyance Refinement and Mulberry Plant 6 February 7 Resolution 7 “to explore the City’s and the District’s mutual interests in order to ascertain whether those interests can be met, including through potential agreements between the City and Northern regarding the City’s and the District’s goals and issues related to NISP…”