SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the Twenty-Second Interim Agreement between the Northern Colorado Water Conservancy District, through its Northern Integrated Supply Project Water Activity Enterprise, and the Town of Erie, Acting by and Through its Erie Water Activity Enterprise
Department
DEPARTMENT: Utilities Finance
Presenter
PRESENTER(S): Todd Fessenden, Utilities Director
Pete Johnson, Water Counsel
end
Andrea Kehrl, Water Counsel
Time
Sara Hancock, Finance Director
TIME ESTIMATE: 30 minutes
end
For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $2,873,007
Balance Available: $2,359,496 + $550,000 transfer request
Fund Water Fund
Line Item Number: 500-75-110-603500-100007
Budget Transfer: $550,000 from 500-75-110-605000-257513
New Appropriation Required: No
Policy
POLICY ISSUES:
NISP is intended to provide a new water supply to meet part of the Town’s anticipated future water demands, and it is an important project necessary to meet those demands. It also provides additional flexibility within the NCWCD system with Erie’s CBT and Windy Gap Units.
Recommendation
STAFF RECOMMENDATION:
Approve the Resolution
Body
SUMMARY/KEY POINTS
• NISP is a key aspect of the Town’s future water supply.
• NISP is not a Colorado River source and therefore adds redundancy and resiliency
• There are no alternative projects that can deliver the quantity and quality of NISP
BACKGROUND OF SUBJECT MATTER:
The Town of Erie previously approved numerous agreements with the Northern Colorado Water Conservancy District, acting by and through its Northern Colorado Water Conservancy District Northern Integrated Supply Project Water Activity Enterprise, (NCWCD) to participate in the Northern Integrated Supply Project (NISP or the Project). The Town of Erie, acting by and through its Erie Water Activity Enterprise, (Erie) is participating in the Project for a permitted firm yield of 4,500 acre-feet per year of water for future water demands.
At this time, NCWCD has requested that each participant in NISP enter into a Twenty-Second Interim Agreement for Participation in NISP (Agreement) to continue its participation into 2026 and to provide funds in support of the Project in 2026 and 2027, as discussed in more detail below. The proposed Agreement between Erie and NCWCD is attached hereto, and the Project participants’ financial contributions for this Interim Agreement are listed in Exhibit B to the Agreement.
As background, NISP is a water project coordinated by NCWCD to develop additional water resources for 9 participant water providers within northern Colorado including Erie, Left Hand Water District, Fort Morgan, Central Weld County Water District, Windsor, Frederick, Fort Lupton, Lafayette, and Dacono. Erie has participated in this group for the past 21 years to cooperatively pursue the Project. NISP is intended to provide a new water supply to meet part of the Town's anticipated future water demands, and it is an important project necessary to meet those demands. NCWCD has a NISP webpage with additional information, maps, etc. which can be found here: <https://www.northernwater.org/nisp>.
NISP is a substantial project consisting of two large reservoirs and all related facilities. Numerous phases of NISP have been completed to date. The completed and future phases of the Project are summarized below:
§ Phase 1 investigated Poudre River and South Platte River water rights and potential reservoir sites in the Poudre Basin and has been completed.
§ Phase 2 consisted of additional reservoir site investigations, alternatives analyses, environmental studies, and financial analyses, and has been completed.
§ Phase 3 is ongoing and consists of the permitting activities with the U.S. Army Corps of Engineers and other agencies, in addition to other NEPA compliance activities. The Army Corps of Engineers issued their Section 404 Permit for the Project, which was a major milestone for Phase 3. The 404 permit has been challenged, and litigation is ongoing.
§ Phase 4 consisted of the preliminary design and the first phase of geotechnical investigation for the Glade Reservoir, the largest reservoir in the Project, and has been completed.
§ Phase 5 is ongoing and consists of Glade Reservoir facility design and necessary geotechnical work, and design of the Highway 287 relocation.
§ Phase 6 is ongoing and consists of continuing refinement of the conveyance and delivery system, negotiations concerning the South Platte Water Conservation Project and development of agreement with the subject ditch companies, land and easement identification and potential purchase, and advancement of mitigation plans including the potential pursuit of time-sensitive mitigation activities.
§ Phase 7 is ongoing and consists of the development of a NISP Allotment Contract, financial planning for the Project, and legal defense of the Project permits.
§ Phase 8 involves early pipeline construction, procurement of electrical materials for the Highway 287 relocation, and advancement of the option agreement for the Timnath Inlet Canal.
Erie staff, in coordination with water resources and legal consultation, has determined that NISP has the potential to provide up to 4,500 acre-feet of firm annual water yield to partially meet Erie's ultimate projected raw water demand. NISP provides a good opportunity to acquire a large portion of Erie’s future water supply and provides additional flexibility within the NCWCD system with Erie’s CBT and Windy Gap Units.
Should Council wish to choose another path forward; staff will offer up additional options for consideration.
The project is over the existing budget. In order to complete this project, Staff asks Council to transfer $550,000 to Budget Line Number 500-75-110-603500-100007 (Raw Water Acquisitions - NISP) from (500-75-110-605000-257513) (NISP Conveyance Easement Acquisitions).
priorities
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attachments
ATTACHMENT(S):
1. Resolution
2. Agreement
3. Presentation