HomeMy WebLinkAboutMemo - Mail Packet - 9/6/2016 - Memorandum From Adam Jokerst Re: Recreational Use Of Halligan Reservoir By The Landowners Association For Phantom Canyon RanchesUtilities Executive Director
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M E M O R A N D U M
DATE: August 30, 2016
TO: Mayor and City Councilmembers
FROM: Adam Jokerst, Water Resources Engineer
THROUGH: Darin Atteberry, City Manager
Kevin R. Gertig, Utilities Executive Director
RE: Recreational Use of Halligan Reservoir by the Landowners Association for
Phantom Canyon Ranches
Bottom Line:
The North Poudre Irrigation Company (“North Poudre”) historically leased recreational rights to
Halligan Reservoir for fishing, boating, and similar activities to the Landowners Association for
Phantom Canyon Ranches (“Association”). The City has since acquired Halligan Reservoir and
owns such recreational rights. The Association recently requested the City to grant it exclusive
and perpetual lease of recreational rights to the reservoir, including to the enlarged Halligan
Reservoir area. Such a lease would bar all future public access to the City’s property at the
reservoir. Staff does not believe granting such a lease is in the best interest of the City at this
time, so has instead offered the Association an interim exclusive lease while the Halligan Water
Supply Project (“Halligan Project”) permitting process is completed. In response, the
Association has threatened to publically oppose the Halligan Project and deny City employees
access across Association lands used to launch boats for water quality sampling. This
memorandum provides background information and Staff recommendations on the issue.
Discussion:
The Landowners Association for Phantom Canyon Ranches is composed of approximately 35
members owning property around Halligan Reservoir. The Association is focused on land
conservation and habitat enhancement, and established some of the first conservation-focused
land covenants in the State. The Association has also long been the lessee for recreational use of
Halligan Reservoir and surrounding property, and has historically supported the City’s proposal
to enlarge Halligan Reservoir.
Fort Collins owns various lands under and around Halligan Reservoir. When the City initially
began investigating enlarging Halligan Reservoir in the 1980s, it planned to construct a much
larger reservoir than currently envisioned; approximately 40,000 acre-feet, as opposed to current
proposal for 14,500 acre-feet. A 40,000 acre-foot reservoir would inundate portions of
Association property. At the current 14,500 acre-feet proposal, no Association lands will be
inundated. A map of property ownership around Halligan Reservoir is provided below.
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In anticipation of enlarging Halligan, the City signed an option agreement in 1987 (“1987
Option”) with the Association that provided the Association perpetual and exclusive recreational
rights to the enlarged reservoir in exchange for Association lands and access easements. The
1987 Option was never executed, and the agreement expired in 2008.
Historically, the North Poudre Irrigation Company (“NPIC”) leased the recreational rights for
Halligan Reservoir to the Association. In 1993 the City purchased an option to buy Halligan
Reservoir from NPIC. The option agreement (“1993 Option”) preserved a prior lease agreement
between NPIC and the Association made in 1988 (“1988 Lease”). The 1988 Lease expired in
2008. From 2008 to 2016, the Association was provided recreation rights under addendums to
the 1988 Lease. In May 2016, NPIC requested that the City oversee future leasing agreements
for Halligan Reservoir, and in June 2016 the City issued the Association a non-exclusive
revocable permit for recreational use of the reservoir (“2016 Permit”). Soon after signing the
2016 Permit, the Association voiced concerns that the non-exclusive nature of the permit did not
authorize the Association to exclude or prosecute trespassers on Halligan Reservoir. The
Association then requested the City to provide it an exclusive and perpetual lease of recreational
rights to the reservoir, including to the enlarged Halligan Reservoir (if permitted), similar to the
1987 Option. Such an exclusive and perpetual lease would forever bar public access to the
reservoir.
Staff does not feel that entering into an exclusive and perpetual lease agreement with the
Association is appropriate at this time for the following reasons:
The Halligan Project no longer anticipates inundating any Association property, and
current construction plans do not impact any association property1.
Staff feel the public and City Council should be engaged when deciding the future
recreational uses of Halligan Reservoir. The release of the draft Environmental Impact
Statement (“EIS”) for the Halligan Project, currently scheduled for mid-2017, will
provide an opportunity for public comment.
Future conditions could be imposed by various agencies and entities involved in the
Halligan Project’s permitting process that would require allowing public access to the
reservoir. For example, Colorado Parks and Wildlife (“CPW”) could seek to require the
City to allow public access to Halligan Reservoir through that agency’s Fish, Wildlife,
and Recreation Mitigation Planning Process. CPW currently manages land abutting
Halligan Reservoir that could provide public access. As another example, Larimer
County will have an opportunity to seek to impose recreational conditions through its
County 1041 permitting process.
If the Halligan Project is abandoned by the City, the Halligan property reverts back to
NPIC ownership under terms of the 1993 Option.
1 The construction plans for the enlargement of Halligan Dam are preliminary. Future refinements and mitigation
requirements could indicate a need for Association lands and/or access easements across Association property.
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Given the uncertainties outlined above, Staff believes it prudent to wait to until the permitting
process for the Halligan Project concludes before deciding whether to enter into a perpetual lease
agreement with the Association. Accordingly, Staff has instead offered the Association an
interim lease, which would provide the Association exclusive recreational use of the City’s
property at Halligan Reservoir for ten-years with provisions to renegotiate the lease upon the
conclusion of the Halligan Project’s permitting process or if the City abandons the Halligan
Project. This easement will require City Council approval.
The Association has reacted negatively to the proposed interim lease. The Association is
adamant that it receive perpetual and exclusive recreation rights to the reservoir, citing the prior
expired agreements discussed above and the Association members’ investments in the
surrounding property. As a result, the Association has threatened to publically oppose the
Halligan Project and to deny City employees access across Association lands used to launch
boats for routine water quality sampling.
Staff is committed to maintaining a positive relationship with the Association. We admire the
conservation work done by the Association, and desire to be good neighbors in the area. We also
value support for the Halligan Project from surrounding landowners. As such, Staff believes the
best option forward continues to be the issuance of an interim lease as described above. Unless
alternative direction is received, Staff will continue to discuss terms of such a lease with the
Association before bringing it to City Council. However, it is possible that the Association or its
individual members may approach City Manager and/or City Council on this issue prior to such
a lease being finalized.
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