To: Honorable Mayor and Members of Town Council
From: Mark Marlowe, Utilities Director
Matt Benak, Water Resources Manager
Sheri Scott, Water Resources Program Analyst
Title
Update: Alternative Source of Water Supply Projects
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to update Town Council on the status of the Town’s hybrid solution to the Alternate Source of Water Supply Projects including the Water Infrastructure Supply Efficiency (WISE) project and the Box Elder project. Progress on each project is summarized below.
WISE
Overall, the WISE project continues to make progress and remain on budget and on schedule. Modifications to the core infrastructure are also on budget and on schedule. Various pieces of the local infrastructure are in the design phase or getting ready to be designed. Intergovernmental agreements with potential partners in the local infrastructure are also being negotiated. See Staff Report for a map of the infrastructure.
Total WISE project expenditures to date are $6.4 million. The expected expenditures in the next 5 years are $24.7 million. Key updates related to the project include:
• Staff is reviewing a proposal from Burns & McDonnell to design the final leg of the local infrastructure for $263,873 and staff will bring a recommendation to Council for approval in August. At a later date, staff will also be requesting Council’s approval for the authority to exercise eminent domain during negotiations with land owners once a pipeline alignment is selected.
• The Ridgegate design is approximately 35% complete and is still on schedule to be completed by the end of 2015.
• The developer of the Canyons Development reported they are committed to being a partner on a portion of the local infrastructure that would convey WISE water from Parker Water & Sanitation District’s (PWSD) existing infrastructure near Rueter-Hess Reservoir, around the southeast side of the reservoir, and to the Town of Castle Rock.
• The Town plans to partner with PWSD to study the hydraulics of the WISE water flow through PWSD’s system to identify bottlenecks and evaluate timing of expansion projects. AECOM submitted a proposal that is being evaluated by the team and costs will be split 50/50 with PWSD.
• The Smoky Hill Tank, a part of the core infrastructure, was approved by Colorado Department of Public Health and Environment (CDPHE) in June and the contractor is getting ready to break ground soon.
• The Phase 1 improvements at the Quebec Street Water Treatment Plant are close to being approved by CDPHE.
• The South Metro WISE partners are working on developing Operations Rules and Regulations by which the Western Pipeline will be operated.
• The WISE Authority is developing an Operations Manual with Denver Water and East Cherry Creek Valley Water & Sanitation District (ECCV).
Alternate Source of Supply: Box Elder Project
The Box Elder project includes the following three components: (1) the Box Elder Well Field, (2) water rights acquisition, and (3) treatment and transmission infrastructure. Items 1 and 2 were designed to progress in tandem. Item 3 is part of the longer term renewable water program, and infrastructure is planned as water rights come online. The purpose of the Box Elder Well Field is to serve as a point of diversion for acquired water rights.
Overall, the Box Elder Project continues to move forward. The total expenditures to date for the project are $5.8 million. The expected expenditures in the next 5 years are $36.7 million. Key project updates are as follows:
• The next Box Elder well field option agreement payment of $200,000 is due on October 1, 2015. This payment will extend the due diligence period to October 1, 2016.
• The Town is working on terms for a Surface Use Lease Agreement with Sublette, Inc. for the Rothe Property. This agreement will allow Sublette to use the property for recreational activities (hunting) that already occur on adjacent property owned by Sublette. Staff will bring this agreement to Council for consideration on August 18, 2015.
• The Town contracted with Sublette, Inc. to revegetate the majority of the Rothe Property with native seeding.
• Weld County reported they are moving forward with developing 1041 Permitting regulations.
• Staff is continuing to work with Stillwater Resources on multiple water rights opportunities to provide a total of 2,500 acre-feet of water that provide the most cost effective approach to the hybrid project.
Budget Impact
To date, both the WISE and Box Elder projects continue to be within budgeted amounts for 2015 through 2019.
Staff Recommendation
Staff recommends continuing to move forward with modifications to the WISE core infrastructure to allow WISE water deliveries by June 2017, continuing negotiations with South Metro WISE partners to share local infrastructure design and construction costs, selecting a qualified design firm for a portion of the WISE local infrastructure, working with the State and regional partners to store water in Rueter-Hess Reservoir, continuing due diligence activities on the Box Elder project, securing additional northern water rights that can be used in an augmentation plan for the Box Elder Well Field, and closely following the developing Weld County regulations for the 1041 Permitting Process.
Attachments
Staff Report