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:

October 13, 2017

MEETING DATE:

October 23, 2017

RE:

Resolution 139, Series of 2017 Purchase of Woody Creek Parcel

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 identify alternative sites
for water storage. The Woody Creek Parcel has been identified as a suitable site for water storage. The City
is currently under contract and in the due diligence period for this parcel.
PREVIOUS COUNCIL ACTION: At the October 3, 2017 Council Work Session, staff presented current
results of the due diligence studies for the Woody Creek Parcel. The geotechnical studies, environmental
assessments and Bird and Aircraft Hazzard Assessment indicate that this site is appropriate for a range of
water storage vessels. Following the work session, Council directed staff to return with a Resolution for
purchase of the Woody Creek Parcel.
DISCUSSION: The City Utilities 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 system. As a part of this integrated water supply system, since 1965 the City 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 approximately 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.

 In recognition of the vital need to further develop its water storage, City Council directed staff to file due
diligence on its conditional storage rights on Maroon and Castle Creeks. Council recognizes 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.
Staff and its consultants, Deere and Ault Engineers, identified the Woody Creek Parcel as a suitable site
for storage of some or all of its Maroon and/or Castle Creek conditional water storage rights.
COUNCIL DIRECTION REQUESTED: Council is requested to consider adoption of Resolution 139
Series of 2017 directing staff to purchase the Woody Creek Parcel.
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. Developing the City’s raw water storage is necessary
to ensure the resiliency of its water system.
BUDGET IMPACT: The cost to purchase the Woody Creek Parcel, along with soft and financing costs,
will be $3M. Acquisition of the Woody Creek Parcel was not included in the adopted budget. In a memo
to the Mayor and City Council dated August 18, 2017, Aspen’s Director of Finance presented financing
alternatives for purchase and development of this property. Three alternatives identified include:
1. Issue General Obligation Bonds
2. Use Certificates of Participation (COPs)
3. Pay Cash
The two financing options would create annual debt service obligations in the approximate amount of
$190,000-$210,000. Paying cash would reduce the working capital (fund balance) below our financial
policy requirements.
CITY MANAGER COMMENTS:
ATTACHMENTS:
Attachment A – Resolution 139 Series of 2017 to purchase Woody Creek Parcel