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Greeley (:Wo Isis°oNERs
11111 MAR 30 A l0: IO
March 16, 2012
Bill Garcia RECEIVED
915 Tenth St./PO Box 758
Greeley, CO 80632
Dear Commissioner Garcia,
As you know, Greeley is in the process of building a new drinking water pipeline from its Bellvue Water
Treatment Plant near the mouth of the Poudre Canyon to Greeley. The pipeline adds capacity to Greeley's
existing water pipelines in the area. Currently, two-thirds of the project is complete, with 18.7 miles of pipe in
the ground and in use. We have made progress in the last couple of months and wanted to provide you with
another update.
The Northern Segment is the next segment to be constructed and the final segment located in Larimer County.
This segment begins near North Shields Street in Fort Collins and connects to the Bellvue Filter Plant. To date,
Greeley has acquired on a voluntary basis three-quarters of the easements necessary (26,267 linear feet of right-
of-way) for the Northern Segment. This represents 81% of the land needed to construct this portion of the
pipeline. Greeley has completed final design of this segment and contractors are now pre-qualified to perform
construction.
As it did with other segments of the pipeline project, Greeley requested verification of coverage under a
Nationwide Permit for utility lines from the U.S. Army Corps of Engineers. As a part of its evaluation, the
Corps requested information on cultural resources, threatened and endangered species, and the depletive effects
of the project on the Poudre River.
Greeley provided all necessary information regarding cultural resources and the required consultation under the
National Historic Preservation Act is now complete. Additionally, the United States Fish and Wildlife Service
recently issued its Biological Opinion on the Northern Segment. The Service found that the pipeline is not likely
to jeopardize the continued existence of the Preble's Meadow Jumping Mouse, or destroy or adversely modify
its critical habitat. This successfully concludes the Endangered Species Act consultation for the Northern
Segment. Greeley continues to work with the Corps regarding the depletive effects of the project.
Finally, in response to questions raised by some members of the public, I wish to assure you that Greeley has the
financial capacity to complete, operate, and maintain this pipeline. Standard and Poor's Rating Service (S&P)
recently increased Greeley's water revenue bond rating from AA- to AA. This is largely based on continued and
projected debt service coverage that S&P considers strong, and maintenance of cash and investments. Other
factors that helped Greeley's rating increase include a diverse ratepayer base, affordable rates, a good portfolio
of existing water rights, and limited additional debt plans.
I will continue to update you as this project progresses. Please contact me if you have questions or need any
additional information. Let me know if you would like a personal briefing from my staff and me.
Si rely,
Jon nson
Director Greeley Water& Sewer
) -Th0ut\Ne c. iw ' 2012-0925
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Water and Sewer Department • 1100 10th Street,Greeley,CO 80631 . (970)350-9811 Fax(970) 350-9805
We promise to preserve and improve the quality of life for Greeley through timely,courteous and cost-effective service.
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