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HomeMy WebLinkAboutInformation Only 022326AGENDA INFORMATION UPDATE February 23, 2026 4:00 PM, I.Information Update I.A Continued Stage Two Water Restrictions, Spring Drought Outlook, and Drought Mitigation and Response Plan Update I.B Work Session Follow Up Memo - Lumberyard Developer Update Jan 26 Continuation of Stage Two Drought Information Only Report.docx 26JAN2026 Council WS Follow Up - Lumberyard Update.docx 1 1 INFORMATION ONLY REPORT TO: Aspen City Council FROM: Megan Killer, Water Efficient Landscaping Standards Technician Steve Hunter, Special Projects Engineer THROUGH: Erin Loughlin Molliconi, Utilities Director Tyler Christoff, Deputy City Manager MEETING DATE: February 23, 2026 SUBJECT: Continued Stage Two Water Restrictions, Spring Drought Outlook, and Drought Mitigation and Response Plan Update INTENDED OUTCOME & SUMMARY: This report is for informational purposes only. No action is requested of Council at this time. This report is to inform Council of the City of Aspen Drought Response Committee’s recommendation to continue the current Stage Two Water Shortage Declaration while preparing for a potential Stage Three Water Shortage Declaration. This report also informs Council of the intent to update the Drought Mitigation and Response Plan, which was formally adopted through Resolution #062 Series of 2020 . Council can expect representatives of the Drought Response Committee to bring a ny recommended changes to the Water Shortage Declaration if there are not significant improvements in drought conditions, as well as to bring updates to the Drought Mitigation and Response Plan and the relevant Code sections for approval in the coming months. DISCUSSION: Aspen’s municipal water supply comes from Castle and Maroon Creeks. The Aspen water system has very little water storage, relying primarily on direct streamflow. This system does not allow for the controlled release of water to match water demand. Instead, it depends on the consistent release of water from snowmelt throughout the year. During drier than normal years, runoff conditions may not match the timing of the City’s typical demands and reductions in typical water usage may be necessary. During 2 these conditions, the City’s water policy enables Council to enact its Water Shortage Ordinance by selecting an appropriate water shortage stage. The City adopted its water shortage policy through an Ordinance of the Municipal Code on July 14, 2020, via resolution #061. The Stage One Water Shortage declared by City Council on June 10, 2025 (Resolution #81, Series of 2025) was elevated to a Stage Two W ater Shortage through Resolution #112, Series of 2025 on August 12, 2025 and effective September 1, 2025. It has remained in effect since that time. The City’s Drought Response Committee is represented by the following City Departments: City Manager’s Office, Communications, Engineering, Environmental Health and Sustainability, Parks and Open Space, and Utilities. The Committee has reviewed the latest snowpack, drought data and outlooks for Aspen and the Roaring Fork watershed and anticipates recommending a Stage Three Water Shortage Declaration if conditions do not improve significantly in the second half of winter (February-April). Historically, March is the best month for snow and typically has the highest levels of precipitation for the year. The Drought Response Committee meets once a month, or more often as necessary, to present current data, discuss drought impacts and enforcement protocols, as well as to make recommendations for Council adoption of any changes to water shortage restrictions. The committee meets next on March 12, 2026 and on April 16, 2026. Snowpack & Drought Conditions Since the last information only report to council on November 18, 2025, drought conditions have degraded throughout the Roaring Fork Watershed (Figure 1). The February 12, 2026 US Drought Monitor (Figure 2) has Aspen and Pitkin County mostly in the Exceptional Drought (D4) Category with some of the County in Severe Drought (D3) Category. The drought monitor is one of multiple drought indicators the City uses to determine local drought conditions. Figure 1 US Drought Monitor Change Since November 2025 (%) 3 Figure 2 The US Drought Monitor for Colorado with Aspen Starred December 2025 was the third hottest December on record. The average snowfall in December and January was near average, but with the unusually hot temperatures, the snowfall did not result in significant accumulation. NRCS Snow-Water-Equivalent (SWE) for the Roaring Fork watershed is another indicator used to help predict the amount of streamflow we can expect. As of February 12, 2026 SWE is at 54% of median (Figure 3). Figure 3 Roaring Fork Valley Watershed Snow-Water-Equivalent at Record Low 4 NOAA’s Climate Prediction Center forecasts that drought could persist in Western Colorado with a 33-40% probability of higher-than-normal temperatures and equal chances for above, below or average precipitation for February, March and April 2026 (Figures 4 and 5). Figure 5 Precipitation Outlook February-April 2026 Figure 4 Temperature Outlook for February-April 2026 5 Financial Impacts of Stage Two Rate surcharges for monthly water rates for Stage Two Water Shortage are summarized in Table 1. In the winter months, when irrigation no longer impacts demands on the system, only about 1-3% of water accounts hit the 3rd and 4th tiers. Billing Tier Stage Two Water Shortage % Surcharge Tier I 0% Tier II 0% Tier III 50% Tier IV 75% Billing Tier Buttermilk Metro District Stage Two Water Shortage % Surcharge Tier I 0% Tier II 62.5% One-Tier Rate Structure (Bulk Water / Fill Stations) Stage Two Water Shortage % Surcharge Tier I 50% Raw Water Rate Structure (Pressurized) Stage Two Water Shortage % Surcharge Pressurized 50% Non-pressurized 50% Table 1: Stage Two Water Shortage Surcharges Drought Mitigation and Response Plan Update The City of Aspen’s Drought Mitigation and Response Plan was first adopted by Council on July 28, 2020, via resolution #62, series of 2020 after historical droughts in 2002, 2012, and 2018 led staff to evaluate a long-term plan for water shortages. This plan outlines indicators of drought severity for each water shortage stage along with actionable items to meet specific reduction goals for the associated stage. City staff plan to re-evaluate the Drought Mitigation and Response Plan with an outside consultant. The Drought Mitigation and Response Plan is a guiding document in the water conservation and drought conditions toolbox. The plan is intended to be reviewed and updated as operational conditions or lessons learned through implementation of the staged drought response plan may require. The intended updates will include incorporating the most recent drought data, assessing each drought stage’s indicators and water reduction goals, as well as expanding and clarifying enforcement measures 6 of each stage. Staff plan to bring the updated plan to Council f or adoption and approval, as well as any updates to the appropriate sections of the Municipal Code. Staff hope to have any updates ready by the end of May 2026. NEXT STEPS: Staff will continue to monitor conditions, and if improvements to the US Drought Monitor, local snowpack, and temperature predictions are not seen by late March or early April, it is very likely the Drought Response Committee will be coming to Council with recommendations for a stage degradation change. Staff intend to have the Drought Mitigation and Response Plan updated by May of 2026. Once it is updated, staff will present the plan and any relevant code changes for Council’s approval. This is expected to be in May or June 2026. ATTACHMENTS: CITY MANAGER NOTES: 7 FOLLOW-UP REPORT ORIGINAL MEETING DATE: January 26, 2026 FOLLOW-UP MEMO DATE: February 3, 2026 SUBJECT: Lumberyard Developer Update PRESENTED BY: Chris Everson, Project Manager COUNCIL MEMBERS PRESENT: Mayor Richards and Councilmembers Doyle, Guth, Rose and Benedetti ______________________________________________________________________ WORK SESSION DISCUSSION SUMMARY: Staff and Kimball Crangle, Colorado Market President for Gorman & Company, presented an update on the private developer’s progress since the July 2025 contract approval. This included review of the City’s $250 million contribution and the schedule leading to Closing #1 in April, which will cover phase 0 infrastructure and phase 1/building 1 (104 units) – with construction planned to begin soon after, and with building 1 expected to open in mid‑2028. Closing #2 is planned for spring 2027 and will include phase 2/building 2 (91 units) and phase 3/building 3 (82 units), with anticipated occupancy in early and mid‑2029. There was a question about what in Gorman’s implementation plans will be notably different from the recorded planned development (PD) designs, and there was also a questions about work in process on easements. NEXT STEPS: Staff plans to return at the March 9 work session for the following agenda item:  Closing #1 final budget, introduction to closing documents (Staff will also provide the additional information requested above.) Staff is also preparing to present the following resolution for Council review and approval at the March 24 regular meeting:  City Council Resolution to approve Closing #1 documents CITY MANAGER NOTES: 8