ASPEN CITY COUNCIL WORK SESSION MEMORANDUM 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: June 30, 2017 MEETING DATE: July 10, 2017 RE: Resolution 102, Series of 2017: Amendment to contract to analyze the potential use of In-Situ Reservoirs as a component of Aspen's Integrated Water System REQUEST OF COUNCIL: Staff requests Council amend its contract with Deere and Ault Consultants, Inc. in the amount of $116,000 for professional services to analyze the potential use of in-situ reservoirs as a component of Aspen’s Integrated Water System. PREVIOUS COUNCIL ACTION: 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. Included in this Resolution was the direction to: Enhance and increase the City’s efforts to investigate alternative locations and sizing requirements of the Maroon Creek Reservoir and/or Castle Creek Reservoir, and to report findings back to City Council for further consideration and action as appropriate. On May 27, 2017 Council passed Resolution #60, Series of 2017 approving a contract with Deere and Ault Consultants to investigate the potential use of in-situ reservoirs as a component of Aspen’s Integrated Water System. 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 operates an integrated water system, which leverages many supply, storage, operational and management techniques to optimize the City’s resources. DISCUSSION: Water storage is a component of an integrated water system which allows efficient operation of resources and reliable delivery of water even during times of emergency or shortage. Aspen has minimal storage in its system, with less than a day of water supply available as storage during peak times. To address this vulnerability, the City has maintained its conditional water storage rights on Maroon and Castle Creeks, and in addition continues to seek alternatives to these surface reservoirs. In-situ reservoirs have been identified as a promising alternative to augment, and potentially reduce, the need for surface storage. In-situ reservoirs create sub-surface water storage through the installation of slurry walls extending from the surface to bedrock. With suitable geology, these slurry walls can create an inplace, subsurface storage vessel. As needed, water would be withdrawn from the in-situ reservoir via wells and pumped to a treatment facility. This amendment will also consider the use of open water storage in alternative locations. FINANCIAL IMPACTS: The execution of the attached contract with Deere and Ault will require additional 2017 budget authority in the amount of $116,000. Water Fund has a sufficient balance and reserves to cover this additional budget request. ENVIRONMENTAL IMPACTS: The City is committed to reducing its footprint (carbon and water) and fighting climate change, but even with this effort and action the City recognizes that it is best practice to plan for a future that looks very different than today. The City’s efforts to develop its integrated water system are necessary to ensure the City’s resiliency. RECOMMENDED ACTION: Council is requested to approve the amendment to its contract with Deere and Ault Consultants, Inc., through adoption of Resolution 102, Series of 2017. CITY MANAGER COMMENTS: ATTACHMENTS: Attachment A – Resolution 102, Series of 2017 Attachment B – Amendment to Contract with Deere and Ault Consultants, Inc.