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: September 29, 2017 MEETING DATE: October 3, 2017 RE: Acquisition of Woody Creek Parcel for Water Storage - Work Session 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. Included in this Resolution was direction to investigate alternative water storage locations. This work session will focus on one site identified, the Woody Creek Parcel. In this work session staff will seek Council direction to return to a regular meeting with a resolution stating Council’s intent to purchase this property regardless of the outcome of the upcoming bond debt election question in November. DISCUSSION: The City of Aspen operates a water utility that supplies customers both inside and outside the municipal boundary. The City is committed to operating a water system that is safe, legal and reliable. To this end, the City maintains a portfolio of water rights to meet the current and future water needs of its customers. Within this portfolio are conditional storage water rights on Maroon and Castle Creeks. Recent studies have reinforced the need for these rights. These rights are located in alpine valleys and their development would involve difficult and expensive construction and likely cause significant environmental impacts. Because of these impacts, Council requested staff seek alternative storage sites. Potential Storage Sites In order to investigate the possibility of moving Aspen’s conditional storage water rights, the consulting firm Deere and Ault was engaged to study the Aspen area for alternative storage locations. Deere and Ault identified several locations. The Woody Creek Parcel was determined to be a highly desirable storage location. Woody Creek Parcel The Woody Creek Parcel was identified as the most appropriate site for future water storage. The benefits of this site include: • • • Less environmental implications than many other alternatives. In addition, the City could partner with the local gravel mining operation to improve the reclamation of the gravel pit site. Location of the site allows for the legal movement of storage rights from Maroon and Castle Creeks to a diversion point near the Woody Creek Parcel. Scalability provides planning flexibility. The layout and size of the site allow for design of water storage from around 350 acre-feet to a maximum of 8,000 acre-feet when combined with the existing Elam Gravel Pit site. Results of Due Diligence (to-date) The City is currently in a due diligence process to discover particular characteristics of the Woody Creek Parcel, and its suitability for use as a water storage site. The City is currently engaged in the following studies: 1. Geologic Review and Engineering Analysis of Storage Potential Deere and Ault performed a pre-feasibility level analysis of the site (See Attachment A) and concluded that the geology would be favorable for a range of water storage alternatives, from 320 acre-feet up to 8,000 acre-feet. The largest reservoir size would require the addition of the adjacent gravel pit. This study identified potential challenges for in-situ reservoir storage. Due to the geology, in-situ storage would require expensive construction and would be limited in size. 2. Natural Resources Assessment ERO Resources conducted a natural resource assessment to determine environmental impacts of disturbing the site (See Attachment B, Appendix B). The study concludes that compliance with the Clean Water Act and the Endangered Species Act would not put the project goals in jeopardy. They concluded that the site does not provide habitat for any species protected by the ESA, nor does the site contain wetlands or other waters of the US. The proximity to the Aspen-Pitkin County Airport was identified as an issue that would require coordination with Pitkin County to ensure that appropriate mitigation efforts are put in place to avoid interaction of birds and aircraft. 3. BASH Assessment Following-up on recommendations by ERO discussed above, the City contracted with EMPSi to further investigate the potential of Bird and Airplane Safety Hazard (BASH) implications of the proximity of the Woody Creek site to the airport. EMPSi is currently reviewing the range and type of water storage options presented in the Deere and Ault report and suggesting appropriate mitigation measures. 4. Phase I Environmental Environmental Services, Inc. are providing consulting services to determine the history of the Woody Creek Parcel and any incidents on the site that may be of concern. COUNCIL DIRECTION REQUESTED: During the work session, Council is asked to provide direction regarding the acquisition of the Woody Creek Parcel. Staff recommends passage, at a future regular Council meeting, of a resolution stating Council’s intent to buy the Woody Creek Parcel regardless of the outcome of the coming election issue regarding issuing general obligation bond debt for this purchase. There are other options for financing this purchase. 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. Increasing the City’s raw water storage is necessary to ensure the resiliency of its water system. BUDGET IMPACT: Funds to support the work associated with the acquisition of the Woody Creek Parcel are the subject of the upcoming bond debt election. CITY MANAGER COMMENTS: ATTACHMENTS: Attachment A – Investigation of Woody Creek Parcel, Deere and Ault Consultants