HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 05/07/2019 - RESOLUTION 2019-055 AUTHORIZING THE CITY MANAGER TAgenda Item 9
Item # 9 Page 1
AGENDA ITEM SUMMARY May 7, 2019
City Council
STAFF
Mark Kempton, Water Production Manager
Eric Potyondy, Legal
SUBJECT
Resolution 2019-055 Authorizing the City Manager to Execute an Agreement Between the City of Fort Collins,
the East Larimer County Water District, the Fort Collins-Loveland Water District, and the North Weld County
Water District Regarding a Study Related to a Temporary Shutdown of the Horsetooth Reservoir Soldier
Canyon Outlet.
EXECUTIVE SUMMARY
The purpose of this item is to execute an intergovernmental agreement between the City of Fort Collins and
the Tri-Districts (Fort-Collins Loveland, East Larimer County, and North Weld County water districts) to
evaluate alternate water supplies and risk mitigation strategies during an October 2020 planned 45-day
shutdown of the Soldier Canyon Dam water supply line from Horsetooth Reservoir to the two drinking water
treatment plants serving the City of Fort Collins and surrounding areas.
STAFF RECOMMENDATION
Staff recommends adoption of the Resolution.
BACKGROUND / DISCUSSION
Northern Water, which operates the 54-inch Soldier Canyon pipeline from Horsetooth Reservoir to the Fort
Collins Water and the Soldier Canyon Water Treatment Plants, is planning to perform necessary maintenance
on the water line in October 2020. This maintenance will require a full shutdown of the line for up to 45 days,
which will result in both treatment plants relying on the Cache la Poudre River as the sole water source for the
City and the Tri-Districts service areas. Historically, the Poudre River has been a reliable source of high-quality
water, but it can be susceptible to water quality impairing incidents such as forest fires, vehicle crashes,
chemical spills, and other incidents that may cause the Plants to shut off the water intakes from the River. If
one or more of these such incidents were to occur during the planned shutdown, the City and the Tri-Districts
would be at risk of a drinking water shortage.
To mitigate this potential risk, the City and the Tri-Districts have agreed to study alternative water supply
strategies that could range from short term conservation measures, up to building physical improvements such
as pump stations. The alternatives may also include a public outreach plan detailing voluntary water
conservation measures before and during the shutdown period. A full range of mitigation strategies will be
analyzed and an alternative, or a suite of alternatives will be selected that will best mitigate the potential water
shortage should an issue occur in the Poudre River during the shutdown period. The design, construction, and
cost sharing of any proposed physical improvements would be covered under a separate City Council
approved IGA with the Tri-Districts.
Agenda Item 9
Item # 9 Page 2
CITY FINANCIAL IMPACTS
The cost of the analyses will be reviewed and approved by all parties and shared between the City and the Tri-
Districts per the terms of the IGA. Existing Fort Collins Utilities O&M or Minor Capital funds will be used for the
City portion of the project costs. The scope of the work will be limited to a maximum price to be decided by the
participants. Fort Collins Loveland Water District has limited its project share to $20,000. It is anticipated that
the City's share will also be in this funding range.
BOARD / COMMISSION RECOMMENDATION
At its April 18, 2019 meeting, the Water Board voted unanimously to recommend approval of the IGA.
(Attachment 1)
PUBLIC OUTREACH
No public outreach has been performed at this time. Based on the outcomes of the alternative’s analysis, a
public outreach plan will be prepared detailing the City's and the Tri-Districts efforts to communicate potential
water saving and risk mitigation strategies during the planned shutdown.
ATTACHMENTS
1. Water Board minutes, April 18, 2019 (draft) (PDF)
Excerpt from Unapproved DRAFT MINUTES - WATER BOARD
REGULAR MEETING
April 18, 2019, 5:30 p.m.
222 Laporte Avenue, Colorado River Community Room
04/18/2019 – Excerpt from Unapproved DRAFT MINUTES Page 1
Horsetooth Supply Line Shutdown Intergovernmental Agreement with
Tri-Districts
Mark Kempton, Water Production Manager
(Attachments available upon request)
Presentation Summary:
• Water Production Manager, Mark Kempton, gave some background
information to explain the need of an Inter-Governmental Agreement
(IGA). The Water Treatment Facility has two primary drinking water
sources (Horsetooth Reservoir (HT) and Poudre River). Northern Water
did work on the line and found two issues with valves and the trash racks
on the inlet, inside the reservoir, that needs to be replaced. This means
that the HT pipeline will need to be shut down for 45 days. Since all
dependency will fall on the Poudre River during this time, it requires staff
to mitigate risks associated with the plan (forest fires, vehicles in the river,
tanker trucks in the river, etc.). The proposal is to enter an IGA with the
Tri-Districts to look at risk mitigation strategies and possibly to structure
temporary water supplies during the 45 days. Some preliminary ideas
have been discussed, such asking CDOT to restrict truck traffic in Poudre
Canyon during the 45 days. The final plan alternatives will be selected in
the late summer of 2019. The line would be shut down in October of 2020.
Discussion Summary:
• Board members commented on and inquired about various related topics
including what HT’s water level would be brought down to (The level will
be brought down to around 100 feet, a typical Fall level), how the 45-day-
timeline was chosen (Mr. Kempton said the original plan was for 60 days,
but they were able to bring down to the current projection with work
planned seven days a week. Coating of the pipeline alone takes 7-10
days before water can be ran through the line), the reason for the October
2020 shut down (October is the best month because demands drop-off
and it is also when Northern Water requested the shut-down to take
place), anticipated costs of the project (possibly 20,000-30,000 in
engineering fees), and clarification on the risk (The risk isn’t the water
supply, but the immediate acute risk of something happening and the
water can’t be treated).
Board Member Bovee moved that the Water Board recommend to City Council
the adoption of an Inter-Governmental Agreement with the Tri-Districts
ATTACHMENT 1
WATER BOARD
REGULAR MEETING
04/18/2019 – Excerpt from Unapproved DRAFT MINUTES Page 2
authorizing the City to enter into a contract to develop alternate water supply
and mitigation strategies for the planned shutdown of the Horsetooth water
supply line in the Fall of 2020.
Board Member Ortman seconded the motion.
Vote on the motion: It passed unanimously, 7-0.
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RESOLUTION 2019-055
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT BETWEEN THE
CITY OF FORT COLLINS, THE EAST LARIMER COUNTY WATER DISTRICT, THE
FORT COLLINS-LOVELAND WATER DISTRICT, AND THE NORTH WELD COUNTY
WATER DISTRICT REGARDING A STUDY RELATED TO A TEMPORARY SHUTDOWN
OF THE HORSETOOTH RESERVOIR SOLDIER CANYON OUTLET
WHEREAS, Horsetooth Reservoir is a water storage reservoir operated by the Northern
Colorado Water Conservancy District (“Northern Water”), and the Soldier Canyon Outlet is a
pipe and related infrastructure that conveys water from Horsetooth Reservoir under and through
the Soldier Canyon Dam; and
WHEREAS, water delivered through the Soldier Canyon Outlet is ultimately delivered
to, among other locations: the Soldier Canyon Filter Plant, which is owned and operated by the
East Larimer County Water District; the Fort Collins-Loveland Water District; and the North
Weld County Water District (collectively, “Tri-Districts”) through the Soldier Canyon Water
Treatment Authority and the City’s Water Treatment Facility; and
WHEREAS, Northern Water intends to temporarily shut down the Soldier Canyon Outlet
during late 2019 or 2020 for approximately 30 to 45 days for inspection, maintenance, and
related purposes, which will result in a temporary water supply disruption for the City and the
Tri-Districts; and
WHEREAS, the City and the Tri-Districts desire to investigate ways to address this
temporary water supply disruption and would each perform such investigations separately in the
absence of any collaboration as contemplated in this Resolution; and
WHEREAS, because of the overlapping of interests among the City and the Tri-Districts,
a joint investigation through a study of the various options for the Parties (the “Study”) would
result in cost savings for each and be to their benefit; and
WHEREAS, the City intends to use an engineering consulting firm the City already has
under contract to perform the Study pursuant to a scope of work for the Study that will be
developed by jointly the City and the Tri-Districts, with the Tri-Districts to reimburse the City
for their portion of the Study which will reduce the City’s costs to investigate ways to address
the temporary water supply disruption identified above; and
WHEREAS, staff from the City and the Tri-Districts have negotiated an agreement
regarding such a Study, as set forth in the draft Agreement attached hereto as Exhibit “A”.
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 Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That the City Manager is hereby authorized to execute an agreement
substantially in the form of Exhibit “A”, with such modifications and additional terms and
conditions as the City Manager, in consultation with the City Attorney, determines to be
necessary and appropriate to protect the interests of the City or effectuate the purposes of this
Resolution.
Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 7th
day of May, A.D. 2019.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
(03/08/19)
Page 1 of 9
AGREEMENT BETWEEN THE CITY OF FORT COLLINS,
THE EAST LARIMER COUNTY WATER DISTRICT, THE FORT COLLINS-
LOVELAND WATER DISTRICT, AND THE NORTH WELD COUNTY WATER
DISTRICT REGARDING A STUDY RELATED TO A TEMPORARY SHUTDOWN OF
THE HORSETOOTH RESERVOIR SOLDIER CANYON OUTLET
This Agreement is entered into by and between the following Parties: the City of Fort
Collins, Colorado, a home rule municipality (“City”); the East Larimer County Water District, a
political subdivision of the State of Colorado (“ELCO”); the Fort Collins-Loveland Water District,
a political subdivision of the State of Colorado (“FCLWD”); and the North Weld County Water
District, a political subdivision of the State of Colorado (“NWCWD”). ELCO, FCLWD, and
NWCWD are collectively referred to as the “Tri-Districts.”
RECITALS
A. Horsetooth Reservoir is a water storage reservoir operated by the Northern Colorado Water
Conservancy District (“Northern Water”). The Soldier Canyon Outlet is a pipe and related
infrastructure that conveys water from Horsetooth Reservoir under and through the Soldier Canyon
Dam.
B. Water delivered through the Soldier Canyon Outlet is ultimately delivered to, among other
locations: the City’s Water Treatment Facility and the Soldier Canyon Filter Plant, which is owned
and operated by the Tri-Districts through the Soldier Canyon Water Treatment Authority.
C. Northern Water intends to temporarily shut down the Soldier Canyon Outlet during late
2019 or 2020 for approximately 30 to 45 days for inspection, maintenance, and related purposes.
This will result in a temporary water supply disruption for the Parties.
D. The Parties desire to investigate ways to address this temporary water supply disruption.
Because of the overlapping of interests among the Parties, a joint investigation through a study of
the various options for the Parties (“Study”) would result in cost savings for each of the Parties
and be to their benefit. The Parties thus desire to work together on the Study as set forth herein.
E. The City intends to use HDR, an engineering consulting firm the City already has under
contract (“Consultant”), to perform the Study. The Tri-Districts will reimburse the City for their
portion of the Study as described below.
F. As governmental entities, the Parties are authorized into enter into the following
intergovernmental agreement pursuant to C.R.S. §29-1-203.
EXHIBIT A
(03/08/19)
Page 2 of 9
AGREEMENT
1. INCORPORATION OF RECITALS. The foregoing recitals are hereby incorporated as
if fully restated in their entirety.
2. THE SCOPE. The Parties will meet with the Consultant to jointly develop the scope of
the Study to be completed (“Scope”), which shall include a total cost estimate for the Study and a
proportional allocation of costs to each Party based on the amount of the Study attributed to each
Party’s needs. Before the Consultant begins the Study, each of the Parties shall confirm in writing
(such as by email or otherwise) that the Scope is acceptable.
3. COOPERATION WITH THE STUDY. The Tri-Districts agree to cooperate in good
faith with the City and the Consultant for the Study, including: developing the Scope; reviewing
and providing comments on draft analyses and reports generated by the Consultant as part of the
Study in its development and completion; and providing information needed to complete the Study
to the Consultant, in a timely manner. The City agrees to work in good faith to ensure that the Tri-
Districts have a meaningful opportunity to review and provide comments as discussed above, and
to address comments.
4. OWNERSHIP OF THE STUDY. Each of the Parties will be an owner of the Study and
all other deliverables provided by the Consultant on the Study (including, but not limited to,
analyses, analytical tools, data, models, and reports and drafts thereof). The City shall provide the
Tri-Districts with a copy of the draft and final reports, as well as the data, analytical tools, and all
other information generated by the Consultant in association with the Study that are related to their
systems within 14 days of the City’s receipt of the same, subject to the terms and conditions of this
Agreement.
5. REIMBURSEMENT TO THE CITY. Each of the Tri-Districts shall pay the City for
that district’s portion of the Study as set forth in the agreed-upon Scope within 45 days of receiving
an invoice from the City for the same. Each of the Tri-Districts shall submit payment to Fort
Collins Utilities (attn: Lance Smith and Phil Ladd), 700 Wood Street (P.O. Box 580) Fort Collins,
Colorado 80522-0580.
6. FISCAL CONTINGENCY. Notwithstanding any other provisions of this Agreement to
the contrary, the obligations of the Parties in fiscal years after the fiscal year of this Agreement
shall be subject to appropriation of funds sufficient and intended therefor, with the Party having
the sole discretion to determine whether the subject funds are sufficient and intended for use under
this Agreement. The failure of a Party to appropriate such funds shall be grounds for termination
of this Agreement as to such Party upon written notice pursuant to Paragraph 11.
7. REMEDIES. If any Party fails to comply with the provisions of this Agreement, the other
Parties, after providing prompt written notification to the noncomplying Party, and upon the failure
of the noncomplying Party to achieve compliance within 35 days following receipt of such notice,
may seek all such remedies available under Colorado law.
(03/08/19)
Page 3 of 9
8. NO THIRD-PARTY BENEFICIARIES. This Agreement is entered into between the
Parties for the purposes set forth herein. It is the intent of the Parties that they are the only
beneficiaries of this Agreement and the Parties are only benefitted to the extent provided under the
express terms and conditions of this Agreement.
9. GOVERNING LAW AND ENFORCEABILITY. This Agreement shall be construed
in accordance with the laws of the State of Colorado. The Parties recognize that the constitutions,
statutes, and rules and regulations of the State of Colorado and of the United States, as well as the
Parties’ respective bylaws, city charters and codes, and rules and regulations, impose certain legal
constraints on each Party and that the Parties intend to carry out the terms and conditions of this
Agreement subject to those constraints. Whenever possible, each provision of this Agreement
shall be interpreted in such a manner so as to be effective and valid under applicable law.
10. WAIVER. A waiver of a breach of any of the provisions of this Agreement shall not
constitute a waiver of any subsequent breach of the same or another provision of this Agreement.
Nothing in this Agreement shall be construed as any waiver of governmental immunity of the
Parties who are governments or any other governmental provisions of State law. Specifically, by
entering into this Agreement, neither Party waives the monetary limitations on liability or any
other rights, immunities, or protections provided by the Colorado Government Immunity Act,
C.R.S. § 24-10-101, et seq., or any successor or similar statutes of the State of Colorado.
11. NOTICES. All notices or other communications hereunder shall be sufficiently given and
shall be deemed given (i) when personally delivered; (ii) on the date and at the time of delivery or
refusal of acceptance of delivery if delivered or attempted to be delivered by an overnight courier
service to the party to whom notice is given at the address specified below; (iii) on the date and at
the time shown on the electronic mail if sent by electronic transmission at the e-mail addresses set
forth below and receipt of such electronic mail is acknowledged by the intended recipient thereof;
or (iv) after the lapse of five business days following mailing by certified mail-return receipt
requested, postage prepaid, addressed as follows:
To Fort Collins: City Manager
City Hall West
300 LaPorte Avenue; P.O. Box 580
Fort Collins, Colorado 80522-0580
With copy to: Fort Collins City Attorney
300 LaPorte Avenue; P.O. Box 580
Fort Collins, Colorado 80522-0580
E-mail: epotyondy@fcgov.com
(03/08/19)
Page 4 of 9
and: Fort Collins Utilities
Attn: Director of Plant Operations
4316 LaPorte Ave.
Fort Collins, Colorado 80521
E-mail: mkempton@fcgov.com
To ELCO: East Larimer County Water District
Attn: District Manager
232 S. Link Lane (Zip Code: 80524)
P.O. Box 2044
Fort Collins, Colorado 80522
Telephone: (970) 493-2044
Email: mikes@elcowater.org
With copy to: Hasler, Fonfara and Goddard LLP
Attn: Joseph H. Fonfara
125 S. Howes Street, 6
th
Floor (Zip Code: 80521)
P.O. Box 2267
Fort Collins, CO 80522
Telephone: (970) 493-5070
E-mail: JoeF@HFGLawfirm.com
To FCLWD: Fort Collins-Loveland Water District
Attn: District Manager
5150 Snead Drive
Fort Collins, Colorado 80525
Telephone: (970) 226-3104
E-mail: chrism@fclwd.com
With copy to: Collins Cockrel & Cole, P.C.
Attn: Robert G. Cole
390 Union Boulevard, Ste. 400
Denver, Colorado 80228-1556
Telephone: (303) 218-7197
E-mail: rcole@cccfirm.com
To NWCWD: North Weld County Water District
Attn: District Manager
32825 CR 39
P.O. Box 56
Lucerne, Colorado 80646
Telephone: (970) 356-3020
E-mail: water@nwcwd.org
(03/08/19)
Page 5 of 9
With copy to: Hasler, Fonfara and Goddard LLP
Attn: Joseph H. Fonfara
125 S. Howes Street, 6
th
Floor (Zip Code: 80521)
P.O. Box 2267
Fort Collins, CO 80522
Telephone: (970) 493-5070
E-mail: JoeF@HFGLawfirm.com
12. CONSTRUCTION. This Agreement shall be construed according to its fair meaning as
it was prepared by the Parties. Headings in this Agreement are for convenience and reference only
and shall in no way define, limit, or prescribe the scope or intent of any provision of this
Agreement.
13. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement of the Parties
regarding the matters addressed herein. This Agreement binds and benefits the Parties and their
respective successors. Covenants or representations not contained in this Agreement regarding the
matters addressed herein shall not bind the Parties.
14. REPRESENTATIONS. Each Party represents to the other parties that it has the power
and authority to enter into this Agreement and the individual signing below on behalf of that Party
has the authority to execute this Agreement on its behalf and legally bind that Party.
15. ASSIGNMENT. No Party may assign any rights or delegate any duties under this
Agreement without the written consent of all other Parties.
16. SEVERABILITY. If any provision of this Agreement shall prove to be illegal, invalid,
unenforceable or impossible of performance, the remainder of this Agreement shall remain in full
force and effect.
[Remainder of Page Intentionally Blank]
(03/08/19)
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CITY OF FORT COLLINS, COLORADO, a home-rule city
By: ______________________________________ Date:
Darin A. Atteberry, City Manager
ATTEST:
By: ______________________________________
City Clerk
APPROVED AS TO LEGAL FORM:
By: ______________________________________
City Attorney’s Office
(03/08/19)
Page 7 of 9
EAST LARIMER COUNTY WATER DISTRICT, a political subdivision of the State of
Colorado
By: ________________________________________ Date:
Mike Scheid, General Manager
(03/08/19)
Page 8 of 9
FORT COLLINS-LOVELAND WATER DISTRICT, a political subdivision of the State of
Colorado
By: ________________________________________ Date:
Chris Matkins, General Manager
(03/08/19)
Page 9 of 9
NORTH WELD COUNTY WATER DISTRICT, a political subdivision of the State of
Colorado
By: ________________________________________ Date:
Eric Reckentine, General Manager