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