HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 02/03/2015 - RESOLUTION 2015-014 APPROVING AN EXCEPTION TO THEAgenda Item 7
Item # 7 Page 1
AGENDA ITEM SUMMARY February 3, 2015
City Council
STAFF
Gerry Paul, Director of Purchasing & Risk Management
Donnie Dustin, Water Resources Manager
SUBJECT
Resolution 2015-014 Approving an Exception to the Use of a Competitive Purchasing Process for a
Professional Services Contract with Western EcoSystems Technology, Inc.
EXECUTIVE SUMMARY
The purpose of the item is to request an exception to the competitive bid process for the contracting of
services for Western EcoSystems Technology, Inc. (WEST), as the alternative is contrary to the City’s
interests. The City has been pursuing the enlargement of Halligan Reservoir for several years to meet future
water supply demands and to provide an emergency storage reserve. The project has been in the federal
permitting process with the U.S. Army Corps of Engineers (Corps) since 2006, which was jointly entered with
the City of Greeley for the enlargement of their Seaman Reservoir. The Corps directs third party contractors
(3PC) that are paid for by the applicants, which is currently WEST. Recently, the permitting for the two projects
was separated, requiring the City to establish a new contract with WEST. Replacement of WEST and selection
of a new 3PC would result in significant delays to the permitting process and substantial additional costs to the
City.
Exception to Competitive Bidding Rationale:
Code Section 8-161(d)(1)(b). Although there exists more than one (1) responsible source, a competitive
process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will
otherwise injure the City's financial interests or will substantially impede the City’s administrative functions or
the delivery of services to the public.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
In 2003, City Council approved proceeding with the development of the Halligan Reservoir Enlargement
Project (Resolution 2003-121). The ongoing need for storage has been further confirmed and discussed in the
Water Supply and Demand Management Policy, which was update in 2012 (Resolution 2012-099).
As part of the federal permitting process to enlarge Halligan Reservoir, the City must obtain from the U.S.
Army Corps of Engineers (Corps) a Clean Water Act (CWA) Section 404 permit. Issuance of this permit
requires conformance with the National Environmental Policy Act (NEPA), which mandates publication of an
Environmental Impact Statement (EIS). The Corps directs third-party contractors (3PC) to draft the EIS, an
effort which requires numerous studies of environmental resources and the publication of related technical
reports.
Agenda Item 7
Item # 7 Page 2
Although the Corps directs the 3PC, the City must pay for their services. A 3PC team was selected in 2005,
and has been working under the Corps direction since that time. Western EcoSystems Technology, Inc.
(WEST) is the prime contractor for the 3PC.
Since 2005, the Cities of Fort Collins and Greeley were engaged in a joint federal permitting process for two
separate projects under a single EIS: Fort Collins’ Halligan Reservoir Enlargement Project and Greeley’s
Seaman Reservoir Enlargement Project - jointly know in the Corps’ EIS process as the Halligan-Seaman
Water Supply Project. The 3PC, led by WEST, performed much of the technical work associated with the joint
federal permitting process for both Cities. A contract between both Cities and WEST has been in place since
2005, and was revised in 2012.
Recently, the Cities mutually agreed to separate the federal permitting process which was made official by the
Corps on January 13, 2015 (as was further described in the attached Halligan memo of the same date). The
separation is beneficial for the expansion of both reservoirs, and will result in publication of a separate EIS for
each project. As a result of separation, Fort Collins and Greeley require separate contracts with their
respective 3PCs. Therefore, Fort Collins requires that the current contract with WEST which includes Greeley
be terminated pursuant to the terms of that contract, and a new contract put into place between only Fort
Collins and WEST.
It is not in the City’s best interest to change the current 3PC and it is unlikely that the Corps would approve
replacement of WEST. Changes to the 3PC would result in significant delays to the permitting process and
substantial additional costs to the City. Therefore, to prevent any additional delays to the Halligan permitting
process, it is in the City’s best interest to contract with WEST.
The City does not wish to change or expand the current contract with WEST other than removing the City of
Greeley as a party to the contract.
Under the Corps direction, WEST will lead the 3PC in drafting the EIS. The current work (Work Order #11) under
consideration includes all work necessary to publish a draft EIS (DEIS), which is currently scheduled to be
released in the spring of 2016. However, the new contract with WEST should not be limited to Work Order #11,
and should allow for production of the final EIS and other tasks as directed by the Corps.
CITY FINANCIAL IMPACTS
The estimated cost for WEST to produce the draft EIS will be approximately $2.6 million. Additional work
orders may be written under this contract for work that may be required between the draft EIS and final EIS
under this contract, but shall not exceed a total of $4 million. This contract has a five (5) year term and will be
subject to annual appropriation of funds.
BOARD / COMMISSION RECOMMENDATION
Not applicable.
PUBLIC OUTREACH
There was no public outreach on this issue.
ATTACHMENTS
1. Halligan Quarterly Report, January 13, 2015 (PDF)
ATTACHMENT 1
2
By notice given in the attached letter dated January 13, 2015, the U.S. Army Corps of Engineers
(Corps), the lead federal permitting agency, concurred that separating the two projects is
appropriate and beneficial. Fort Collins and Greeley have coordinated public information on the
separation, and a joint press release will occur later this week. Initial indications suggest
separation is not expected to increase project costs substantially, and likely will decrease the time
required to develop an EIS.
The Corps has required that the permitting project title be the Halligan Water Supply Project.
This name simply drops the Seaman Reservoir Enlargement term from the current permitting
title, the Halligan-Seaman Water Supply Projects. The Corps decided on this name to preserve
consistency between the formerly joint permitting project, and the newly separated projects.
Currently, the Cities are jointly contracted with third party consultants that are directed by the
Corps to perform the permitting analyses. As part of the separation, the joint contract will be
terminated and Fort Collins will need to approve a new (separate) contract with the third party
consultants. This will require City Council approval, which is currently planned to be considered
at the February 3, 2015 City Council meeting.
Throughout the separation process, the Halligan portion of project permitting has proceeded on
schedule. As required by the Corps, over the past several months Fort Collins has evaluated
various alternatives to expanding Halligan Reservoir. The Corps determined the alternatives
being studied, which are: 1) construction of gravel pit storage paired with reoperation of high
mountain reservoirs; 2) acquisition of existing agricultural plains reservoirs; and 3) expansion of
Glade Reservoir. As directed by the Corps, the City recently completed and submitted detailed
hydrologic models of the alternatives for the Corps to evaluate their impacts to Poudre River, as
well as engineering and construction plans specific to each alternative.
In addition to the three
alternatives described above,
Fort Collins has developed a
proposed “No Action
Alternative” that describes the
measures that will be taken if
the Corps does not issue a
permit to construct an
enlargement of Halligan
Reservoir or an alternate
project. A description of the
No Action Alternative is a
DEIS requirement.
Furthermore, the City recently
completed an updated
preliminary design and
construction cost estimate for the Halligan Reservoir enlargement. The updated design was
necessary partially as a result of the withdrawal of the North Poudre Irrigation Company (NPIC)
Halligan Dam and Reservoir
3
from the project, which substantially reduced the size of the reservoir expansion. The Corps is
utilizing information developed by the City to evaluate all alternatives’ environmental and
socioeconomic impacts.
The updated estimate indicates the total design and construction cost to enlarge Halligan is about
$17.1 million, which is about $1.2 million less than the previous 2012 cost estimate for
rebuilding the existing dam. The reason for the cost reduction is that the previous estimate was
cursory, since rebuilding the existing dam was not intended to happen with other project partners
that would require a larger dam being built downstream of the existing dam.
The Corps and their consultants are also progressing on development of baseline reports
describing environmental conditions which may be affected by the alternatives. All baseline and
impact studies will be presented in the DEIS, which will be prepared for public review and is
expected to be released in early 2016. This schedule is reflected in the most recent update and
timeline for the Front Range Water Supply Report from the Corps (attached).
Estimated Project Cost through December 2014
The following table provides a summary of the project costs for the Halligan project through
December 2014. The acquisition costs are primarily for the purchase of the NPIC property and
the right to enlarge Halligan Reservoir. Payments have been made annually to NPIC since 1993.
The permitting costs include consulting services, legal, project management and other related
project costs. Reimbursements for costs are previously from NPIC and the Tri-Districts. All 2014
costs are unaudited at this time.
Previous Current Cost
Project Period Through
Cost* Cost Dec 2014
Acquisition Cost $ 3.1 M $ 0.2 M $ 3.3 M
Permitting Cost $ 7.6 M $ 0.1 M $ 7.7 M
Total Project Cost $ 10.7 M $ 0.3 M $ 11.0 M
Reimbursements by Tri-Districts & NPIC $ 4.5 M $ 0.0 M $ 4.5 M
Net Fort Collins Cost $ 6.2 M $ 0.3 M $ 6.5 M
*Through September 2014
Anticipated Schedule
Period Task
2005-2018 EIS and permitting decision
2018-2019 Preliminary and final design
2019-2020 Construction
2021 Enlarged Halligan Operations
Front Range Water Supply Report
US Army Corps
of Engineers ®
Omaha District
MOFFAT COLLECTION SYSTEM PROJECT
Summary: The Denver Water Board requested
a Section 404 Permit (Clean Water Act) from the
Corps Omaha District Regulatory Branch to enlarge
the existing Gross Reservoir (near Boulder, Colo.)
to supply 18,000 acre feet per year new ¿ rm yield
of water to its Moffat System. The Corps is the
lead federal agency and has been preparing an
Environmental Impact Statement since 2003 to
analyze environmental effects. Water supplied to the
Moffat Collection System is proposed to be diverted
from either Colorado West Slope tributaries of the
Colorado River or from the South Platte River in the
Colorado Front Range. Denver Water’s preferred
project is to enlarge Gross Reservoir in Boulder
County to provide storage for the diverted water.
Next Milestone: Permit Decision
Summer 2015* (estimated permit decision date)
*The Permit Decision date is tentative as there are a
number of factors that could potentially impact the date
including additional dynamic agency collaboration,
updated study information and new federal and state
requirements.
For more information, please contact us.
Phone: 888-835-5971
Email: moffat.eis@usace.army.mil
Websites: http://www.nwo.usace,army,mil/Missions/RegulatoryProgram/Colorado/EISMoffat.aspx
www.denverwater.org/SupplyPlanning/WaterSupplyProjects/Moffat/
EIS TIMELINE
EIS Milestone Date
Initial Notice Sept. 17, 2003+
Scoping Nov. 7, 2003+
Draft EIS Oct. 30, 2009+
Draft EIS comments due March 17, 2010+
Final EIS April 25, 2014+
Permit Decision Summer 2015*
*Elevation data provided by U.S. Geological Survey. Base map data
provided by ESRI GIS Mapping Software.
January 7, 2015
+ completed
* target timeframe
Front Range Water Supply Report
US Army Corps
of Engineers ®
Omaha District
NORTHERN INTEGRATED SUPPLY PROJECT
Proposed Project Purpose: The Northern Colorado
Water Conservancy District (Northern) provides water
and operates infrastructure that serves numerous
communities along the Front Range of Colorado.
Northern, acting on behalf of 15 municipal and rural
domestic water providers, requested a Clean Water
Act Permit from the Corps’ Omaha District Regulatory
Branch to undertake the Northern Integrated Supply
Project (NISP) that would provide 40,000 acre-feet of
new reliable water supply, which would meet a portion
of the participants’ future water supply needs. The
project proposes the construction of two reservoirs,
Glade and Galeton, with capacities of 170,000 and
45,624+ acre-feet, respectively. The Corps is the lead
federal agency and has been preparing an EIS since
2004 to analyze environmental effects. A Draft EIS
was released April 30, 2008. More than 200 potential
water storage facilities and 16 potential water supply
sources were evaluated with four project alternatives
being carried forward in the EIS.
Next Milestone: Supplemental Draft EIS
June 2015
*SDEIS publication delay due to revisions to the
SDEIS chapters and technical reports based on
Cooperating Agency comments on draft products and
Corps’ direction.
For more information, please contact us.
Phone: 888-835-5971
Email: cenwo-web-regulatory-co@usace.army.mil
Websites: www.nwo.usace.army.mil/Missions/RegulatoryProgram.aspx Ɣ www.northernwater.org/WaterProjects/NISPaspx
EIS TIMELINE
EIS Milestone Date
Initial Notice Aug. 20, 2004+
Scoping March 2004+
Draft EIS April 30, 2008+
Draft EIS comments due Sept. 13, 2008+
Supplemental Draft EIS June 2015*
Supplemental comments due Summer 2015*
Final EIS Winter 2015*
*Elevation data provided by U.S. Geological Survey. Base map data
provided by ESRI GIS Mapping Software.
+ completed
* target timeframe
January 7, 2015
Front Range Water Supply Report
US Army Corps
of Engineers ®
Omaha District
HALLIGAN-SEAMAN WATER SUPPLY PROJECT
Proposed Project Purpose: The city of Fort Collins,
Colo. and the City of Greeley, Colo. propose to expand
the existing Halligan and Milton Seaman reservoirs
from approximately 6,000 and 5,000 acre-feet each
to approximately 19,125 and 53,000 acre-feet,
respectively, for additional municipal, industrial and
agricultural water supply. Fort Collins and Greeley
requested separate Section 404 (Clean Water Act)
Permits from the Corps Omaha District Regulatory
Branch for these projects. Both reservoirs are
located on the North Fork of the Cache La Poudre
River. The Corps is the lead federal agency and has
been preparing a Draft EIS since 2003 to analyze
environmental affects of both projects. The applicants
are pursuing two separate permits but propose to
integrate reservoir operations to increase ef¿ ciencies
and enhance river functions. Due to relatedness of
the actions, both were being assessed in a single EIS.
However, the cities have requested that the projects
be split into separate EISs due to study schedule
differences.
Next Milestone: Draft EIS
Spring 2016
*If the projects are evaluated under separate EISs the
Draft Halligan EIS is scheduled for release Spring or
Summer of 2016. Release of the Draft Seaman EIS
would occur after Spring of 2016 depending on when
and how the Corps resolves Greeley’s concerns on
evaluation of their water supply alternatives.
EIS TIMELINE
EIS Milestone Date
Initial Notice Feb 1, 2006+
Scoping May 30, 2006+
Draft EIS Spring 2016*
Final EIS Summer 2018*
For more information, please contact us.
Phone: 888-835-5971
Email: cenwo-web-regulatory-co@usace.army.mil
Websites: www.nwo.usace.army.mil/Missions/RegulatoryProgram.aspx Ɣ www.halligan-seaman.org/
*Elevation data for map provided by U.S. Geological Survey.
Base map data provided by ESRI GIS Mapping Software.
+ completed
* target timeframe
January 7, 2015
Front Range Water Supply Report
US Army Corps
of Engineers ®
Omaha District
Front Range Water Supply Report
US Army Corps
of Engineers ®
Omaha District
WINDY GAP FIRMING PROJECT
Proposed Project Purpose: The Municipal
Subdistrict, Northern Colorado Water Conservancy
District (Subdistrict) requested a Section 404 (Clean
Water Act) Permit from the Corps’ Omaha District
Regulatory Branch to construct Windy Gap Firming
Project Water Supply facilities for its customers and
13 other Front Range water providers located in
Colorado between Denver and Fort Collins. The U.S.
Bureau of Reclamation is the lead federal agency
managing the EIS for the project since 2003, and
the Omaha District Regulatory Branch has been
participating as a Cooperating Agency. The project
captures water from the Colorado River, pumps it
to existing reservoirs on the west slope and moves
the water through a tunnel system (the Colorado-
Big Thompson Project operated by Reclamation) to
the Front Range of Colorado. The project proposes
to construct Chimney Hollow Reservoir, west of
Berthoud, Colo.
Milestone Dates:
Final U.S. Bureau of Reclamation EIS Release
Date: 2011
U. S. Bureau of Reclamation Record of Decision
Release Date: December 19, 2014.
Next Milestone:
The projected date for the Corps’ permit decision is
December 19, 2015 as the Bureau of Reclamation’s
Record of Decision was signed on this date, 2014.
EIS TIMELINE
EIS Milestone Date
Initial Notice July 2003+
Scoping Dec 19, 2003+
Draft EIS Aug 29, 2008+
Draft EIS comments due Dec. 29, 2008+
Final EIS Nov 20, 2011+
Permit Decision Dec. 19, 2015*
For more information, please contact us.
Phone: 888-835-5971
Email: cenwo-web-regulatory-co@usace.army.mil
Websites: www.nwo.usace.army.mil/Missions/RegulatoryProgram.aspx
www.usbr.gov/gp/ecao/nepa/windy_gap.cfm Ɣ www.northernwater.org/WaterProjects/WGFProjectOverview.aspx
*Elevation data provided by U.S. Geological Survey. Base map data
provided by ESRI GIS Mapping Software.
+ completed
* target timeframe
January 7, 2015
- 1 -
RESOLUTION 2015-014
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROVING AN EXCEPTION TO THE USE OF A COMPETITIVE
PROCESS FOR A PROFESSIONAL SERVICES CONTRACT
WITH WESTERN ECOSYSTEMS TECHNOLOGY, INC.
WHEREAS, the City is currently participating in a federal permitting process before the
United States Army Corps of Engineers (“Corps”) for the enlargement of Halligan Reservoir,
and associated therewith, the Corps has directed that the City retain third-party contractors to
perform various technical work as directed by the Corps; and
WHEREAS, during the period from approximately 2004 through January 13, 2015, the
federal permitting process for the City’s enlargement of Halligan Reservoir was joined with the
federal permitting process for the City of Greeley’s (“Greeley”) enlargement of Milton Seaman
Reservoir, and associated therewith, the City and Greeley entered into a Professional Services
Agreement, dated August 18, 2005, as amended, dated October 4, 2012, with Western
EcoSystems Technology, Inc., as such a third-party contractor; and
WHEREAS, the federal permitting processes for Halligan Reservoir and Milton Seaman
Reservoir have since been separated as of January 13, 2015, and consequently, the current
agreement with Western EcoSystems Technology, Inc., must be terminated; and
WHEREAS, there is additional work to be done by a third-party contractor for the City’s
federal permitting process for the enlargement of Halligan Reservoir and the contract for that
work will exceed $200,000; and
WHEREAS, since Western EcoSystems Technology, Inc., has been working on the
City’s enlargement of Halligan Reservoir since 2005, the use of a replacement third-party
contractor would result in substantial delays to the federal permitting process for the enlargement
of Halligan Reservoir, and would result in substantial additional costs to the City; and
WHEREAS, City Code Section 8-161(d)(1)(b) authorizes the Purchasing Agent to award
a contract for professional services without competition, although there exists more than one
responsible source, if a competitive process cannot reasonably be used or, if used, will result in a
substantially higher cost to the City, will otherwise injure the City’s financial interests or will
substantially impede the City’s administrative functions or the delivery of services to the public;
and
WHEREAS, the Purchasing Agent has determined that, for a contract for professional
services with a third-party contractor for the federal permitting process for the enlargement of
Halligan Reservoir and although there exist responsible sources other than Western EcoSystems
Technology, Inc., a competitive process cannot reasonably be used or, if used, will result in a
substantially higher cost to the City, will otherwise injure the City’s financial interests and will
substantially impede the City’s administrative functions or the delivery of services to the public;
and
- 2 -
WHEREAS, pursuant to City Code Section 8-161(d)(2), the Purchasing Agent has
submitted this determination to the City Manager, who has approved the same; and
WHEREAS, City Code Section 8-161(d)(3) requires prior approval of this purchasing
method by the City Council for all procurements which exceed Two Hundred Thousand Dollars
($200,000.00).
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that the City Council hereby approves the City entering into a professional
services agreement with Western EcoSystems Technology, Inc., as a third-party contractor for
the federal permitting process for the City’s proposed enlargement of Halligan Reservoir, and to
do so as an exception to the City’s competitive procurement requirements for the reasons set
forth herein.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 3rd
day of February, A.D. 2015.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk