HomeMy WebLinkAboutagenda.council.worksession.20080908MEMORANDUM
TO: Mayor and City Council
FROM: Phil Overeynder, Public Works Director
CC: Randy Ready, Assistant City Manager
CC: Steve Barwick, City Manager
CC: Don Taylor, Finance Director
DATE OF MEMO: September 5, 2008
MEETING DATE: September 8, 2008
RE: Castle Creek Hydroelectric Facility -
Public Hearing for $5.5 Million General Obligation Bond
Issuance
SUMMARY: This memo includes details on the project budget and project permitting activities
for the Castle Creek Hydroelectric Facility. This information was requested by City Council
during first reading of the Ordinance and Official Statement.
DISCUSSION: The project budget as it currently stands is summarized below and in
Attachments A and B. The project permitting status is summarized in Attachment C.
Orieinal Budget -July 27, 2007 Memo (Based on 2006 Feasibility Study)
$5.1 Million -- Allocated to Hydro Project
.4 Million -- Did not include funds for Castle Creek Pipeline Repair
Allocated to water supply
$5.5 Million' - Total Budget as of July, 2007
Budget Authorized at Bond Election (November 20071
$5.5 Million
Page 1 of 2
Current Budget
$6,197,981 Million
Difference between Budget at Election and Current Budget
$ 400,000 CORE Grant (REMP funds)
$ 297,981 Transfer from Electric Fund (for electric system
Connection to grid)
$ 5,500,000 General Obligation Bond Issuance
$ 6,197,981 Total Budget as of September 2008
` Original budget totaling $5,468,560; difference due to rounding. Bonding amount
authorization rounded to nearest $100,000.
Attachment A =Castle Creek Hydroelectric Facility -Project Budget
Attachment B =Castle Creek Hydroelectric Facility -Actual Expenses and Encumbrances as of
September 2, 2008
Attachment C = Summary of Design & Permit Review for Castle Creek Energy Center
Page 2 of 2
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Attachment C
Summary of Design & Permit Review for Castle Creek Energy Center
Noise Studies
Produced film of comparable hydroelectric facilities across Colorado and aired film at two
neighborhood meetings. Retained Engineering Dynamics to conduct noise study. Completed
baseline survey of noise conditions at neighborhood sites. Identified turbine/generator noise
emissions and identified compazable unit for comparative noise survey. Developed azchitectural
plans with consideration for sensitive noise receptors. Engineering Dynamics will make
recommendations for architectural materials for noise suppression to ensure noise levels stay at
background conditions (in progress).
Architectural Desiau
Retained Reno Smith Architects to prepaze site plan, preliminary azchitectural design, and
landscape plan for Castle Creek Energy Center (building to house hydroelectric turbine and
generator, geo-exchange heating equipment, interpretative and historic displays). Plans were
reviewed at a neighborhood meeting held in Mazch, 2008.
Engineerine Desien
Retained McLaughlin Rincon Engineers to perform design work for turbine, penstock, taihace,
and intake at Thomas Reservoir. Retained Exponential Engineers to perform design work for
electrical connection to City distribution system and specifications for generator and control
systems. Engineering team assisted in selection of turbine and generator equipment based on six
(6) bids received.
Hydroloeic Studies
Retained Grand River Consultants to complete hydrologic studies of Castle and Mazoon Creeks.
A hydrologic model was prepared to determine quantity of water available for the hydroelectric
plant. Detailed charts were completed showing streamflow conditions before and after
construction of the hydroelectric plant.
Aquatic Bioloay Studies
Retained Miller Ecological Associates to perform aquatic biology and water quality studies that
conform to the Federal Energy Regulatory Commission requirements for licensing. Began
consultative process with state and federal resource agencies and community organizations that
have direct knowledge or data pertaining to fishery resources and water quality. (See FERC
Licensing discussion).
Building Energy Efficiency
Retained Dan Richardson of SGM Engineering to provide design changes for building energy
efficiency.
Open Space Land Exchange
Identified Millionaire Lode Property neaz base of Aspen Mountain as land exchange parcel to
satisfy open space requirements. Obtained Open Space Boazd concurrence on suitability of
property for open space as equal or greater value. Currently completing survey of parcel to
complete exchange.
Use of Right of Way Across Marolt Ouen Space
The penstock (buried pipeline which conveys water from Thomas Reservoir to the Castle Creek
site) uses existing rights-of--way. A significant amount of the historic penstock uses a 20-foot
strip of land acquired for the original 1887 penstock route. Construction across this route will be
coordinated with open space requirements including vegetation protection and restoration
methods provided by the Parks Department.
Coordination with Trail Realignment on Marolt Oaen Space
A portion of the penstock route neaz the Castle Creek Bridge will follow the Mazolt trail
alignrnent. The Parks Department is redesigning the trail in this vicinity. Coordination of
construction activities for both projects is necessary to ensure that their disturbance azeas are
limited to those that can later be used for trail construction.
Coordination with Construction of Micro Hydro at Thomas Valve
The 2009 AMP requests funding for a micro hydro turbine at the "Thomas Valve" PRV
(pressure reducing valve) in order to capture unused energy from the potable water system as
water passes from a higher to a lower pressure zone. Installation of conduit to distribute this
electric power to City facilities will be coordinated during construction of the penstock to avoid
multiple excavations in the open space area.
Coordination of Construction of Electric Feed Lines to City Facilities
The "Express Feed" electric distribution line improvements bringing power from the AABC
substation of the City's electric distribution grid has been designed to be coordinated with the
electric system connections from the hydroelectric plant.
Coordination with Hospital Exaansion-Geo Exchange
The Aspen Valley Hospital is designing an expansion that will more than double current floor
space and is evaluating energy efficiency measures including a geo exchange system. During
construction of the penstock route, additional polyethylene pipe will be installed in the trench in
order to convey the stored thermal energy from the waters used in the hydroelectric production.
FERC Licensing
Aspen applied fora "Declaration of Intention" from FERC to determine that reconstruction of
the historic Castle Creek Hydro plant predated the regulatory authority of FERC for this project.
This application was denied by FERC in February 2008. After consultation with FERC, Aspen
will apply for a conduit exemption for the facility. FERC will hold public hearings in Aspen on
the City's application. This is expected to occur in the fall of 2008. FERC will solicit input
from the public on the project impacts, (including hydrology, fisheries and water quality), from
the public and interested state and federal agencies. The scope of the aquatic studies will be
based on FERC's review of the public and agency comments. FERC may include conditions on
project operations, including the potential for additional fish screening at intakes if it is merited
by the consultative process.
Planning and Zoning Review
Retained Haas Land Planning to prepare application for a PUD at the Castle Creek site based on
the preliminary plans prepared by the architectural team. The date for P&Z review and a public
hearing on the building have yet to be scheduled.