PROJ02027

• Contract/PO #: FS0044FX
• Contractor Name: Larimer County, Board of County Commissioners
• Contract Type: Miscellaneous
• Water District: 0
• Loan Projects - Doc Type: Feasibility Study

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VI. Institutional Analysis and Recommendations

In May 1997, the City of Fort Collins and Larimer County agreed that the flood hazards
presented by Dry Creek and the West Vine Drainage Basin were a priority and enacted an
Intergovernmental Agreement for Stormwater Cooperation (IGA) to jointly pursue flood control
and drainage solutions. The IGA identified two basins to be jointly addressed by the City and
County. These were the Dry Creek Basin, and the West Vine Basin. It was agreed that the City
would take the lead in the West Vine Basin and the County would take the lead in the Dry Creek
Basin. Since that time, the County has formed a stormwater utility for the West Vine Basin, and
a flood control project has been designed and constructed within the West Vine Basin. Pursuant
to the terms of the IGA and subsequent agreements, Larimer County will be the project sponsor
for the Dry Creek Flood Control Project.

The IGA provides a practical and functional institutional arrangement for construction of a
stormwater project involving two jurisdictions. It sets the stage for subsequent arrangements as
to funding and maintenance. The IGA provides that the two entities will share cost of
construction and cost of maintenance based on geographical areas within the respective
jurisdictions. It generally provides that the City will undertake maintenance of completed
improvements, with the County paying the city for maintenance ofthose project elements built in
the County. This is in keeping with the philosophy that each governmental body undertakes
those functions which they have the capability and expertise to address.

As stated above, the City of Fort Collins and Larimer County enacted the Intergovernmental
Agreement for Stormwater Cooperation (IGA) in 1997 (See Appendix I). Implementation of the
proposed Dry Creek Project will require an amendment to that agreement. The amendment will
contain provisions so that as land within the currently unincorporated parts of the Dry Creek
Stormwater Utility Service Area are annexed into the City of Port Collins, the City would
redeem the appropriate amount of debt, and the County would then pay that amount of the
principal to the State.

The existing IGA contains provisions whereby the City agrees to undertake maintenance of
facilities upon their being constructed by the County in accord with City standards. The County,
through its stormwater utilities pays the City for maintenance services. As lands are annexed,
monies paid by the County to the City for maintenance services would be decreased by an
appropriate amount. The provisions of the IGA effectively extend the City stormwater utility out
into County areas so that whenever the City annexes, there is no change to the customer, except
that stormwater fees previously paid to the County will then be paid to the City.

Appendix ii consists of a letter from the City Manager ofthe City of Fort Collins stating that he
is aware of the Dry CreekFlood Control Project, and stating that the City will formally agree to
be responsible for 53% of the project cost.

Project Funding Alternatives

In terms of geographical area, roughly one-half of the Dry Creek Local Basin is incorporated into
the City of Fort Collins. The boundaries between the incorporated and unincorporated areas are

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