ASPEN CITY COUNCIL MARCH STATUS REPORT TO: Mayor and City Council FROM: Margaret Medellin, Utilities Portfolio Manager THRU: Scott Miller, Director of Public Works; Dave Hornbacher, Director, Utilities and Environmental Initiatives; DATE OF MEMO: March 24, 2017 RE: Resolution 141, Series 2016 Monthly Progress Update – March 2017 SUMMARY: On October 10, 2016, Council passed Resolution #141, Series of 2016 directing staff to implement certain water management measures to improve resiliency against future climate change impacts and other system changes while continuing efforts to maintain diligence for two conditional water storage rights on Castle and Maroon Creeks. Staff will provide quarterly updates on work progress, and provide monthly status reports to Council. BACKGROUND: The City Utilities and Environmental Initiatives Department is responsible for assuring Aspen has a safe, legal and reliable water supply, now and into the future. To this end, the City has developed an integrated water supply. As a part of this integrated water supply, since 1965 the City of Aspen has held and maintained conditional water rights for reservoirs on Maroon and Castle Creeks. Today, the City’s primary source of stored water is snowpack, which varies significantly from year to year. Aspen uses direct flow rights from Maroon and Castle Creeks, which are diverted to the Leonard Thomas Reservoir located at Aspen’s Water Treatment Facility, treated, and then delivered to Aspen customers. The Leonard Thomas Reservoir is an operational reservoir with a capacity of 9 acre-feet, which is less than a day of storage during peak summer use. Storage reservoirs, however, can retain water from season to season and year to year, and can provide water supplies even during times of shortage. The Aspen community will face significant challenges maintaining its water supply as we experience changing precipitation and runoff patterns, and possible increased fire, drought, change in runoff timing and lower snowpack levels due to climate change. Without water storage, Aspen’s water supply for households and businesses will be threatened. There will be no meaningful back up if surface supplies are greatly reduced. This is a risk the City considers when making long-range plans. Science confirms that Aspen’s climate is already changing and will continue to do so. Aspen now sees 23 fewer winter days than in the years before 1980. This trend is projected to continue and Aspen’s current water storage – our snowpack - will diminish. Resolution #141 directed staff to pursue actions in four (4) task areas. A substantial multi-year effort is being undertaken to implement these tasks, and will require concurrent processes: legal proceedings, ongoing integrated water system development and operation, refinement of future water demand, collaborative process to identify system needs and potential solutions, and investigation of reservoir resizing and/or relocation. This monthly report will provide updates on staff’s progress towards meeting these resolution directives. KEY ACTIONS SINCE LAST REPORT: Staff has prepared a Work Plan to structure work towards Resolution 141 (2016) goals. Following is an update of items on the Work Plan accomplished since the last status report, dated 1/31/2017. Risk-based analysis of demand and supply variables: Two contracts were entered into on March 6, 2017 with Headwaters Corporation to create tools for incorporating a risk component into Aspen’s water supply and demand projections. Dr. George Oamek visited Aspen to meet with City staff to begin compiling data for the risk tools. Dr. Oamek was introduced to City Council at its March 20, 2017 work session and presented an overview of risk analysis. Dr. Oamek also presented his presentation to the group of opposers to the Maroon and Castle Creek Conditional Storage Water Rights on March 21, 2017. Conservation Efforts: Staff is working with stakeholders to develop a Water Efficient Landscape Ordinance to further encourage efficient use of water in the Aspen service area. Investigation of Groundwater: Staff is working with HRS Engineers determine the augmentation needs of Aspen area wells. Permitting of Reuse System: Staff is working with Carollo Engineers to permit a system that would use wastewater effluent to supplement potable water used for irrigation in the Aspen service area. Develop framework for collaborative process: the services of CBI were contracted to conduct a convening assessment to interview stakeholders about their preference for engaging with the City about its water future. CBI consultants were in Aspen for the week of February 6, 2017 to conduct in-person interviews. A public meeting was held on February 6, 2017. A draft Convening Assessment Report was sent to participants on March 16, 2017 and feedback was requested by March 23, 2017. Alternatives Analysis: Deere and Ault Engineers were contracted to provide a feasibility level analysis of the use of local mine tunnels for water storage. Consultants conducted a tour of local mines on January 26, 2017. Staff have prepared a contract with Deere and Ault Engineers for consideration at the March 27, 2017 City Council meeting to analyze the potential of in-situ reservoirs. Date Past Meetings to discuss Aspen's CSWR Details 7/25/2016 8/3/2016 8/4/2016 8/18/2016 Constituent Meeting Constituent Meeting Constituent Meeting Constituent Meeting NexGen Meeting Stakeholder Meeting Public Open House Pitkin County, Healthy Streams and Rivers Board 9/12/2016 9/20/2016 9/26/2016 9/27/2016 City Council Regular Meeting City Council Work Session City Council Executive Session City Council Work Session Document Memo Memo Memo 10/4/2016 Constituent Meeting 10/5/2016 Councilmember Meeting 10/10/2016 City Council Regular Meeting 11/28/2016 Constituent Meeting 11/28/2016 1/31/2017 2/6-10/2017 3/6/2017 City Council Regular Meeting City Council Work Session Convening Assessment Interviews City Council Regular Meeting 3/16/2017 Constituent Meeting 3/20/2017 City Council Work Session 3/20/2017 3/21/2017 City Council Executive Session Constituent Meeting Marcella Larsen and Bert Myrin Bert Myrin discussion about demand assumptions Passed Resolution 141 Meeting with Will Roush Status update Risk Analysis Contracts Pitkin County, Healthy Streams and Rivers Board Risk Analysis discussion Memo, Resolution Memo draft report Memo, Resolution Status meeting with opposers KEY ACTIONS PLANNED: During the next month, staff anticipate actions in the following areas: Risk-based analysis of demand and supply variables: collection of data, development of risk-based tool, and conversations with the Canary Initiative and climate change experts to identify best models for this analysis. Conservation Efforts: City Council Work Session is scheduled for April 14, 2017 to discuss the proposed Water Efficient Landscape Ordinance to further encourage efficient use of water in the Aspen service area. Develop framework for collaborative process: A final Convening Assessment Report is anticipated in April 2017. Staff will use the results of this Report to develop an RFP for facilitation consultants to assist with the community-based collaborative process. Alternatives Analysis: As a result of the March 21, 2017 meeting with the Opposers Group, a list of supply and storage alternatives proposed by this group is anticipated. These following meetings are anticipated to take place in the near term. Date 3/27/2017 Upcoming Meetings to discuss Aspen's CSWR City Council Regular Meeting 5/15/2017 City Council Work Session Details Document In-situ reservoir contracts Quarterly update Memo, Resolution Memo CONTRACTS: Following are contracts associated with this work: Description Summary of Approved contracts Amount Headwaters Corp. demand analysis $45,000 Headwaters Corp. supply analysis $45,000 Deere and Ault mine water storage analysis $15,000 CBI Convening Assessment Description Summary of contracts Awaiting Approval Deere and Ault in-situ reservoir analysis $23,000 $128,000 Amount $53,000 $53,000 SCHEDULE: The Work Plan is divided into four categories: diligence filing, collaboration, technical analysis and operations. This schedule will be updated as work items progress. The following table lists major work items and estimated schedule of each work item. Start Date End Date Category Item 10/31/2016 12/31/2016 2/9/2017 10/31/2016 12/31/2016 2/9/2017 Diligence Filing Diligence Filing Diligence Filing 2/21/2017 2/21/2017 Diligence Filing 5/9/2017 5/9/2017 Diligence Filing 1/16/2017 5/15/2017 6/12/2017 7/1/2017 9/29/2017 4/7/2017 5/15/2017 6/12/2017 7/1/2018 12/1/2018 Collaboration Collaboration Collaboration Collaboration Technical Analysis File due diligence Statement of opposition due Conference Call with Referee Facilitated meeting with opposers Conference Call with Referee Convening Assessment Release RFP for facilitators Select Facilitation Team Community-based Process Water Future Plan - based on Collaborative Process 3/6/2017 12/30/2017 Technical Analysis 10/31/2016 4/1/2018 Technical Analysis 3/27/2017 6/30/2017 Technical Analysis 1/27/2017 7/31/2017 Technical Analysis 3/6/2017 12/30/2017 Technical Analysis 10/30/2016 4/1/2018 On-going On-going Technical Analysis Operations Operations Risk analysis for supply and demand Develop groundwater strategy Investigate in-situ reservoir potential Investigate mine tunnel storage potential Update climate change models Optimize Reuse System Conservation Efforts Integrated water system ITEMS FOR DISCUSSION: City Council is asked to provide feedback on this monthly status report and suggest additional information to be shared in subsequent reports. CITY MANAGER COMMENTS: