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HomeMy WebLinkAbout2003-121-11/04/2003-APPROVING THE EXERCISE OF THE CITY OPTION FROM NORTH POUDRE IRRIGATION COMPANY TO PROCEED WITH THE D RESOLUTION 2003-121 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING THE EXERCISE OF THE CITY'S OPTION FROM NORTH POUDRE IRRIGATION COMPANY TO PROCEED WITH THE DEVELOPMENT OF THE HALLIGAN RESERVOIR ENLARGEMENT PROJECT AND AUTHORIZING OTHER RELATED ACTIONS WHEREAS,in 1987,the City acquired an interest in the Halligan Reservoir Enlargement Project and the associated conditional storage right,pursuant to Resolution 87-161,adopted by the City Council on November 3, 1987; and WHEREAS,the City conducted extensive engineering and environmental studies in 1989,which have since been updated in 2002 and 2003, and such studies show the project to be feasible and cost effective; and WHEREAS,in 1993,pursuant to Resolution 93-164,adopted by the City Council on November 2, 1993, the City entered into an agreement with North Poudre Irrigation Company ("NPIC") through which NPIC granted to the City an option to acquire all the property or other rights necessary to proceed with the enlargement of the Halligan Reservoir (the "Option Agreement"); and WHEREAS, on September 16, 2003, the City Council adopted Resolution 2003-104, which approved a Water Supply and Demand Management Policy that provides that the City will pursue the acquisition or development of 12,500 to 14,000 acre-feet of water storage capacity in order to provide carryover water and to provide operational flexibility and reliability; and WHEREAS,City staff has since that time determined that 12,000 acre-feet of carryover capacity that would be available to the City in an enlarged Halligan Reservoir would meet the long-term needs of the City; and WHEREAS,Halligan Reservoir can potentially be enlarged to 40,000 acre-feet and the City and other local entities are interested in pursuing a partnership to provide an environmentally sensitive and cost-effective project that meets the regional needs of several entities within the Cache la Poudre River Basin; and WHEREAS, by working cooperatively with other entities, the City can advance significant environmental benefits to the North Fork of the Poudre River that can be achieved through the Halligan Reservoir Enlargement Project (the "Project"); and WHEREAS, the City needs to explore partnership agreements with other entities and proceed with a comprehensive permitting process to secure the environmental approvals required for the Project and to improve the environmental sensitivity and cost-effectiveness of the Project; and WHEREAS,the Option Agreement is scheduled to expire if the City does not exercise its option to proceed with the Project (the "Option") by the end of 2003; and WHEREAS, Ordinance No. 5, of the Board of the Water Utility Enterprise of the City of Fort Collins (the "Board"), authorizing the issuance of a non-interest bearing water revenue bond to secure said Enterprise's payment obligations for the benefit of NPIC (the "Revenue Bond") pursuant to the Option Agreement, is scheduled for consideration by the Board on first reading on this 4th day of November, 2003; and WHEREAS, pursuant to Article XIV, Section 18 of the Constitution of the State of Colorado, Section 29-1-203 of the Colorado Revised Statutes, and Article 11, Section 16 of the City Charter, the City Council may authorize intergovernmental agreements through which the City may cooperate together with other governmental entities to provide any function lawfully authorized to each. NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the City Manager is hereby authorized to take such actions as are necessary to exercise the City's Option to proceed with the Project pursuant to the Option Agreement,contingent upon the final approval of the issuance of the Revenue Bond by the Board. Section 2. That the City Manager is hereby authorized, upon the exercise of the Option, to proceed with such investigation, planning, regulatory review processes, site acquisition, design and construction work as he determines to be necessary to pursue the enlargement of Halligan Reservoir to a capacity not to exceed 40,000 acre-feet, provided that the capacity and design shall be economically feasible,shall comply with all applicable environmental standards and requirements and shall be subject to semi-annual review by the City Council. Section 3. That the City Manager is hereby authorized, upon the exercise of the Option, to negotiate and enter into a written agreement with NPIC for the operation and maintenance of Halligan Reservoir pending the enlargement project. Section 4. That the City Manager is hereby authorized, upon the exercise of the Option, to negotiate and enter into written agreements with NPIC, Fort Collins-Loveland Water District, East Latimer County Water District, North Weld County Water District, and other local water suppliers interested in acquiring capacity in the Project,through which the City may share the costs of engineering and environmental studies,environmental mitigation,project management and design,and other Project work with such other interested parties, in exchange for possible future rights to a portion of the new Halligan Reservoir capacity to be constructed. Section 5. That the City Manager is hereby authorized, upon the exercise of the Option, to negotiate and enter into a written agreement with the City of Greeley providing for cooperation, coordination and cost-sharing for environmental review, planning and permitting, and other work mutually beneficial to the City for its Halligan Reservoir Project and City of Greeley for its proposed Seaman Reservoir enlargement project. Section 6. That the City Manager is hereby authorized, upon the exercise of the Option, to negotiate and enter into one or more written agreements with the U.S. Army Corps of Engineers providing for cooperation, coordination, investigation and analysis related to federal environmental regulatory requirements applicable to the Project. Section 7. That the City Manager is hereby authorized, upon the exercise of the Option, to enter into negotiations with NPIC, Fort Collins-Loveland Water District, East Larimer County Water District, North Weld County Water District, the City of Greeley, and such other local water suppliers as may be willing and able to cooperate in the enlargement of Halligan Reservoir as set forth herein,and to develop agreements providing for cooperative financing of construction and ongoing operation of the Project in exchange for proportionally shared use of the new Halligan Reservoir storage capacity on a long-term basis, which agreements shall be presented to the City Council at a later date for final approval. Passed and adopted at a regular meeting of the Council of the City of Fort Collins held this 4th day of November, A.D. 2003. r ayor ATTEST: City Clerk