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HomeMy WebLinkAboutagenda.council.worksession.20160920 CITY COUNCIL WORK SESSION September 20, 2016 4:00 PM, City Council Chambers MEETING AGENDA I. Council Discussion - no memo II. Red Mountain & East Aspen Water System Upgrade III. Maroon Creek Micro-Hydro Partnership Update IV. Conditional Water Storage Rights P1 Page 1 of 5 MEMORANDUM TO: Mayor and City Council FROM: David Hornbacher, Director of Utilities Tyler Christoff, Deputy Director of Utilities Lee Ledesma, Finance and Administrative Services Manager THRU: Scott Miller, Public Works Director DATE OF MEMO: September 16, 2016 MEETING DATE: September 20, 2016 RE: Red Mountain and East Aspen Water System Upgrades and Funding Mechanism PURPOSE: The purpose of this work session is to summarize the proposed Red Mountain and East Aspen Water system improvements, project cost, and funding mechanism. Staff and our consulting engineers have analyzed the City’s water system for its ability to serve water during a fire event on the Urban/Wildland interface. Recent models indicate that some water flows are insufficient for fire events in certain areas of the City’s pumped water zones. These pumped zones correspond with the highest risk wildfire zones in the Aspen area. Given the current situation, several hydrants within these zones cannot provide adequate fire flows for a single structure fire, let alone a major fire event which would quickly expend the system. The purpose of the improvement project is to dramatically upgrade these fire suppression capabilities in the City’s high risk wildfire zones (East Aspen and Red Mountain). The proposed capital intensive water system improvements are estimated to cost approximately $10.98 million including design, construction, project management, other supporting tasks, and contingencies. The annual debt payment based on a 25-year bond issuance is $ 666,200. Based on previous discussion with Council, Staff has updated the preferred funding mechanism for this project and will present for your consideration and direction. REQUEST OF COUNCIL: Council is requested to: • Approval for staff to proceed with identified East Aspen and Red Mountain area water system improvements project. • Confirm and direct staff as to the cost allocation method and funding mechanism to be utilized. • Approval to proceed with securing project funding. PREVIOUS COUNCIL ACTION: July 23, 2013 – Council authorized staff to utilize $ 132,000 in funds on several interrelated projects which collectively comprise a coordinated and multi-year wildfire mitigation program. These programs included: Evacuation Routes, Community Outreach and Fuel Clearing, Utilities P2 II. Page 2 of 5 Easement Fuel Breaks and Anchor Lines, and harden Water delivery systems in the pump zones on Red Mountain and East Aspen. September 17th, 2013 - in a joint City/County work session, Council received an update on the Wildfire Mitigation Program from Travis Elliot. Update covered: 1) Community Outreach, 2) Fuel Removal, 3) Ingress and Egress, 4) Water System Hardening, 5) Wildfire Fighting Capabilities Assessment, and 6) Gathering and organizing Community Data. June 2, 2014 - in a Work Session, Council received an update on the Wildfire Mitigation Program, Water System Improvements and Funding Mechanism. This work session focused on water system improvement necessary to correct identified water flow and reliability deficiencies in East Aspen and Red Mountain areas, project cost, and funding alternatives. BACKGROUND: Colorado’s increasing problems with wildfire are well known. In addition to the loss of life, the Rocky Mountain Insurance Information Association estimates damage from the 2012 and 2013 wildfire seasons at more than $860.2 million in insurance losses in Colorado. Aspen has been fortunate so far, but we must be proactive. The combination of increasing periods of drought and decades of continued fire fuels growth has led to a worrisome situation that must be addressed. While the Aspen Fire Protection District (AFPD) and other area fire districts are well-prepared and adept at fighting fires, certain aspects of fire readiness in Aspen’s Wildland Urban Interface (WUI) areas need attention. In 2013, City Council made the creation of a comprehensive wildfire mitigation plan one of its Top Ten Goals. Since then, staff members from the City of Aspen, Pitkin County, and the AFPD have teamed up to prepare a multi-dimensional wildfire mitigation plan that emphasizes a collaborative effort between the agencies by forming one Community Wildfire Mitigation Team. Today’s discussion on water system upgrade is one of the focus area for the Community wide plan being: • Improve/Harden Water Delivery Systems in Pumped Zones in Red Mtn. and East Aspen As a partner and trusted expert in fire suppression, the AFPD was consulted for the implications of these high risk areas not meeting firefighting flow capacities. The fire district explained that, “Fire is indiscriminate and any upgrades to the water utility and delivery system in Aspen facilitates the protection of the entire community from the ravages of fire. Two fundamental requirements to successful fire suppression operations are access and water supply. Without one or the other, your firefighter's chances of success are greatly diminished. We have concerns in our area with the Wildland Urban Interface, the direct interaction between the built and natural environments, and the impacts one fire event could have on the other.” – Brian Nichols, Former Fire Marshall, Aspen Fire Protection District P3 II. Page 3 of 5 DISCUSSION: In December 2013, working as a consultant to the City, Merrick and Company completed a “Wildfire Mitigation Plan”. This plan identified the essential water system improvements in the Red Mountain and East Aspen area necessary to achieve the design criteria identified by the Aspen Fire Protection District (Parker Lathrop) of: • 1500 gallons per minute (gpm) water flow delivery at fire hydrants • 2-hour duration of 1500 gpm fire flow to hydrant • Fire Hydrant spacing less than 1000’ The Plan was further refined and revised by Merrick and Company in July 2015 as the “Preliminary Engineering Report, Water System Wildland Urban Interface Mitigation Plan to the East Aspen and Red Mountain Area”. The water system improvement estimates were updated in 2016 by a third party firm Rider-Levett-Bucknall and form the basis for overall project cost and related funding mechanism. As the project moves from conceptual into the design phase, other adjustment and refinement in individual project scope may occur. In summary, this is a large infrastructure upgrade project based on the completed water system model (by Merrick & Co. in 2013). This analysis concluded that the City’s current water system is deficient in several of its pump-water zones. Specifically, the water delivery infrastructure is inadequate to provide sustained and sufficient firefighting flows to two of the highest-risk wildfire neighborhoods in Aspen and the adjacent Wildland Urban Interface (WUI) of unincorporated Pitkin County. The water systems model identified multiple deficiencies within the pumped zones.1 Among them: • There are 17 hydrants in the Red Mtn. neighborhood that don’t meet design criteria for fire suppression flows, 7 of which deliver less than half of specified amount when water storage tanks are empty; • There are 16 hydrants in the East Aspen neighborhoods that don’t meet design criteria for fire suppression flows, 4 of which deliver less than half the specified amount when water storage tanks are empty; • High dependency on pumped water from pump stations that, in turn, depend upon Holy Cross electricity delivered via overhead power lines (that would likely fail in a wildfire event), and the associated lack of backup power generation; • Undersized pumps to deliver specified fire suppression flow and duration; • Undersized water lines that lead to insufficient line capacity to meet specified fire suppression flows; and • Insufficient water storage capacity in East Aspen area (the current 25,500-gallon tank would provide ~17 minutes of fire suppression flows, provided only one hydrant is open). The recommended system improvements include: • Pump system o capacity and pumping upgrades, o backup power generators for pump stations, • Water Lines 1 The model was run to mimic water availability during peak use period—in Aspen’s case, this consistently occurs on July 4th. “Deficient” was defined in the design criteria (by the AVFD) as hydrants that cannot provide >1,500 gpm for >2 hrs. P4 II. Page 4 of 5 o replacement of water lines, o reconfiguration of the existing system. • Storage o installation of water storage tanks. Ultimately, these improvements will increase flows across the system, and bring all but 5 of the hydrants in the area within 300 gpm of fire suppression standards.2 FINANCIAL/BUDGET IMPACTS: Staff has received preliminary engineering reports and costs estimates for the work necessary to provide sufficiently reliable and plentiful fire flows to the Red Mountain and East Aspen neighborhoods. The current estimate for identified improvements is approximately $ 10.98 million. It is proposed to bond for the project funding up front on a 25-year amortization basis, and seek to recoup the costs via water rate adjustments. The annual debit payment is estimated at $ 666,200 Construction would occur generally over a 5-year period. At the June 2, 2014 work session, Council discussed four customer cost allocation scenarios. While all of these funding options accomplish the public safety goal of increasing fire suppression capabilities, the main difference between each policy is who bears the cost. These funding options provide an array of concepts which shifts the cost between the individuals in the service areas and the community as a whole. Each of these are justifiable due to two main arguments: (1) those in the service areas should incur most of the cost of the project since they are receiving the majority of the benefits or (2) the community as a whole should incur the cost as owners of the system, and they were going to finance the upgrades within the master plan already. Of these four options, the general direction from the Council at the work session at that #3, Focused-Blended. See attachment for further detail on this funding allocation. 1) Community Solution: Costs are borne by all 3,781 water account holders 2) Community - Blended: Costs are borne by all water account holders on a 49% / 51% basis (with account holders in Service areas 2 and 3 paying for 51%); 3) Focused – Blended: Costs are borne by all water account holders on a 25% / 75% basis (with account holders in Service areas 2 and 3 paying for 75%); 4) Focused: Costs are borne by the 372 account holders in Service Areas 2 and 3. RECOMMENDED ACTION: Staff recommends Council direct staff to proceed with the proposed Red Mountain and East Aspen Water system upgrades projects and to proceed with securing project funding and water rate adjustments as so determined in this work session. ALTERNATIVES: Council could choose to fund only those portions/phases of the project they deem most pressing, or not to fund these improvements at all. CITY MANAGER COMMENTS: 2 1,500 gpm fire flow for a 2-hour duration, (assumed during the average demand rate during a peak day, per ISO procedures) and fire hydrant spacing less than 1,000 ft. per City standard for structural fires. P5 II. Page 5 of 5 ______________________________________________________________________________ _____________________________________ ATTACHMENTS: Attachment A – Project List Attachment B – Project Cost Summary Attachment C – Water Recovery Option 3, Focused – Blended bill impact table P6 II. Attachment A - Project List RED MOUNTAIN PROPOSED IMPROVEMENTS West Red pumping station improvements - increase capacity from 300gpm to 1400gpm Ruby Red pumping station improvements - increase capacity - undetermined Fixed generator to Ruby Red pumping station - 400kw Mobile generator to Ruby Red pumping statio - 125kw New 8" Green Zone line New hydrant New 8" line on Hunter Creek Rd Relocate existing PRV New 8" line replacing existing 6" Generator connection at Lower Red Pump Station Connection near Hunter Creek Plant Trailer mounted mobile generator - 125kw EAST ASPEN PROPOSED IMPROVEMENTS Abandon Upper Aspen Grove Tank Abandon Knollwood Tanks Abandon Upper Aspen Grove Pump Station Abandon Mountain Valley Pump Station New 120,000 gallon below ground concrete tank Replace existing 6" CIP with new 10" DIP from Mtn Valley Pump Station to existing Replace existing 6" CIP with new 10" DIP from Mtn Valley Pump Station to Fire Hydrant 2002 Replace existing 6" CIP with new 8" DIP from Fire Hydrant 2002 to 2001 Add 3 new Fire Hydrants - Green Zone Repiping on Upper McSkimming Road add 4" PRV (undetermined) Site Acquisition Allowance Site Preparation Allowance New 150,000 gallon Mountain Valley Tank Rehab existing Lower Aspen Grove Pump Station- 1-175 gpm pump - Generator New Mountain Valley Pump Station -2-175 gpm pumps - Generator New Mountain Valley Pump Station - 225gpm pump New Mountain Valley Pump Station - 4" PRV New Mountain Valley Pump Station - Electrical generator connection including switchgear, feeders Replace existing 6" CIP with new 10" DIP below new Mountain Valley Tank - Gravel Surface P7 II. Attachment B - Project Cost Summary Engineering evaluation estimated cost Construction = $ 5,590,000 PIO / PM / Staff = $ 2,060,000 Design = $ 447,000 Escalation = $ 559,000 Contingency = $ 2,164,000 One-Time Issuance = $ 160,000 Estimated Project Cost Estimated Project Cost Estimated Project Cost Estimated Project Cost ==== $$$$10101010,,,,980980980980,000,000,000,000 P8 II. At t a c h m e n t C – Wa t e r R e c o v e r y O p t i o n 3 , F o c u s e d – Bl e n d e d b i l l i m p a c t t a b l e . P9 II. Page 1 of 2 TO: Mayor and City Council FROM: David Hornbacher, Director of Utilities Phil Overeynder, Special Projects Engineer THRU: Scott Miller, Public Works Director DATE OF MEMO: September 15, 2016 DATE OF MEETING: September 20, 2016 RE: Work Session update on the development of the Maroon Creek Micro-Hydro _______________________________________________________________ REQUEST OF COUNCIL: Council is requested to affirm staff direction to: • Create and incorporate the “Aspen Clean Energy Microhydro Company (ACEM)”, a Limited Liability Corporation between the City of Aspen and the T-Lazy-7 Ranch Corporation. • Complete an Operating Agreement for ACEM • Amend the existing FERC Preliminary Permit application for this project to replace the City of Aspen with ACEM as the applicant. PREVIOUS COUNCIL ACTION: On February 23, 2015 City Council adopted Resolution #23. This resolution affirmed the City’s intent to pursue micro-hydro facilities on Maroon Creek, including filing an application for a Preliminary Permit or other appropriate mechanism as determined by legal counsel. On June 27th, 2016, Council adopted Resolution 88, series of 2016. This resolution directed staff to develop a partnership agreement with the T-Lazy-7 Ranch Corporation for the installation and operation of a micro-hydro facility at the existing City of Aspen Maroon Creek diversion structure. Staff was directed to work with the owners of the T-Lazy-Ranch to prepare an agreement for Council review and approval within 90 days of the approval of the resolution. BACKGROUND: On March 4th, 2015 City staff submitted a Preliminary Permit application to the Federal Energy Regulatory Commission (FERC) for the development of a micro-hydro project at the existing Maroon Creek diversion structure. This is consistent with the direction of Resolution #23, Series of 2015, adopted on February 23, 2015. Subsequent to the permit submission, FERC indicated that a Preliminary Permit, which is specific and exclusive to a new micro-hydro facility at this location, would require the City acting in a partnership with other parties, not as a "sole applicant". P10 III. Page 2 of 2 Previously, the City worked with the T-Lazy-7, the Deane family in development of the City’s existing Maroon Creek hydroelectric facility in operation since the 1980’s. DISCUSSION: Since the June 27, 2016 Council meeting, City staff and its consultants, and the T-Lazy-7 Ranch (the owners of the land on which the City's existing diversion structure sits) have continued discussions to identify key aspects essential to creating a legal entity for the ownership, operation, costs and revenue sharing. A draft Memorandum of Understanding (Attachment A) was developed to guide and inform the next steps necessary to create the responsible legal entity and an operating agreement. Staff continued to work with Percheron* to investigate the use and demonstration of the Archimedes Hydrodynamic Screw technology at this location. Ongoing research regarding equipment specifications including operating capacity (kW size, CFS operating range), power generation output, equipment size and installation requirements. Staff met on site with T-Lazy-7 Ranch owners to review potential site installation location and criteria. Previously, this group also met with Holy Cross Energy on site regarding the extension of electric facilities to connect the generator to the grid and the options for the sale of electric energy produced. In addition, staff continues its engagement with and updates to FERC for the permitting process associated with this project. *Background on Percheron: Percheron Power, a Washington State company, is pioneering the use of composite materials and U.S. manufacturing for a more efficient micro-hydro turbine design. Percheron was successful in winning a grant, currently underway, from the U.S. Department of Energy (DoE) to develop and prove this technology approach. Percheron is interested in providing to the City their product to demonstrate the “Archimedes Screw” turbine design at the Maroon Creek site. As such, a significant portion of the capital costs would be avoided by using Percheron's prototype Archimedes turbine technology, which would be donated to the partnership, and would be paid for by the DoE grant money. CITY MANAGER COMMENTS: _______________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ ATTACHMENTS: Attachment A - Draft Memorandum of Understanding between the City of Aspen and the T- Lazy-7 Ranch Corporation Attachment B - Resolution #23 Series of 2015 Attachment C - Resolution # 88, Series of 2016 P11 III. MEMORANDUM OF UNDERSTANDING (“MOU”) BETWEEN THE CITY OF ASPEN (“COA”) AND T-LAZY-7 RANCH CORPORATION (“TL7”) 1. Purpose. This MOU intends to certify and memorialize the intentions of COA and TL7, signifying agreement between both parties to willfully enter into an Operating Agreement for a limited liability company, to be organized under Colorado law and named the Aspen Clean Energy Microhydo Company (the “Company”), to submit an amended preliminary permit to FERC, continue investigating the feasibility of a facility, apply for a License, and if a License is granted, install and operate a microhydro project--independent of the City’s existing hydroelectric facility on Maroon Creek. Both parties have a desire to produce clean energy for the area and wish to protect and preserve water rights in Maroon Creek. 2. Understandings and Agreements. The COA and TL7 agree to the following terms in connection with the formation and operation of the Company and the membership interests therein, subject to approval of their respective legal and tax advisors: 2.1 Contributions for membership interest in the Company. a. COA will contribute services to the Company for all project coordination and project components including permitting, engineering, design, facilities installation, electric extension components except those provided by TL7, and negotiating an agreement on behalf of Company with Holy Cross Electric (HCE) for the sale of electricity to be generated by the facility. Further COA shall negotiating an agreement with Percheron and/or others to obtain equipment and/or grants for the equipment for the facility. b. COA and TL7 will each will enter into a separate operating agreement with the Company to allocate responsibilities for ongoing routine maintenance and operations. It is understood that COA will operate the facility, and that TL7 and COA both will have some ongoing responsibilities concerning maintenance. P12 III. c. TL7 will contribute services to the Company for excavation of the trench, backfill, and restoration for the installation of the electric line from the existing overhead pole to the microhydro installation electric facilities. d. COA will contribute property to the Company in the form of a lease, or other appropriate agreement, to the Company for its water rights necessary for the operation of the facility, for a 20-year term which may be extended. e. TL7 will contribute property to the Company in the form of a lease, or other appropriate arrangement, for the minimum amount of land necessary for the installation and operation of the facility to Company, for a twenty-year term which may be extended. This assumes access for COA and TL7 staff, guests, and limited access to others as appropriate. The lease will address public access and other potential impacts. 2.2 Sale of power. The parties understand that at present it is not possible for TL7 to directly receive power from the project and that the current plan is to negotiate an agreement between the company and HCE to sell all the power generated to HCE. The power produced from the project will be valued at the HCE feed-in tariff rate, currently $0.107/kWh (escalated at X%/yr.), the proceeds of which will be paid to Company and subsequently distributed to its Members, depending on facility production, as follows: o TL7 shall receive a minimum guaranteed distribution of $5,000/yr. o TL7 shall receive a minimum of an additional $5,000 from the first 50% of the gross production of 0 – 100,000 kwh at the then-current rate from Holy Cross Energy. o TL7 shall receive 50% of the gross production revenue for energy production exceeding 100,000 kwh/yr., up to 200,000 kwh/yr. at the then-current rate from Holy Cross Energy. o All remaining energy proceeds will be distributed to COA. 2.3 Both parties are responsible for their legal costs associated with review and creation of the partnership. 2.4 The parties hope to obtain the FERC preliminary permit within six months and proceed as quickly as possible to obtain the License after completing all feasibility studies and other necessary investigations. 3. Duration. This MOU will be in force So long as the Company exists and its Members consist of the parties to this MOU. 4. Performance. Failure of either agency to perform. THIS SECTION TO BE COMPLETED. 5. Effective Date. This MOU will be effective upon the signatures of both named COA and TL7 representatives. P13 III. SIGNATURE BLOCK XXXXXXXX, XXXX XXXXXXX, XXXXXX SIGNATURE BLOCK XXXXXXXX, XXXX XXXXXXX, XXXXXX (Date) (Date) P14 III. P15 III. P16 III. P17 III. P18 III. Page 1 of 4 MEMORANDUM TO: Mayor and City Council FROM: Dave Hornbacher, Director Utilities and Environmental Initiatives Margaret Medellin, Utilities Portfolio Manager THRU: Scott Miller, Director of Public Works; Jim True, City Attorney; Debbie Quinn, Assistant City Attorney DATE OF MEMO: September 16, 2016 MEETING DATE: September 20, 2016 RE: Conditional Water Rights (Maroon Creek Reservoir and Castle Creek Reservoir) REQUEST OF COUNCIL: Council is requested to provide guidance to staff regarding a water court application that must be filed on or before October 31, 2016, in order to maintain its conditional storage rights for the Castle Creek Reservoir and the Maroon Creek Reservoir for another six-year period. PREVIOUS COUNCIL ACTION: Since the City first obtained decrees for these conditional water rights in 1971, the Council has maintained these rights by returning to water court at required intervals to demonstrate diligence in the development of these rights. The current diligence period ends October 31, 2016. Prior to filing an application for the 2016 cycle, Council directed staff at its May 9, 2016 meeting to enter into a public process with the intent of engaging the public and stakeholders regarding their questions, concerns, and support for maintaining these rights, as well as soliciting ideas for consideration in ensuring the City can provide a legal, reliable, and viable water supply into the future. BACKGROUND: A conditional water right is a place holder in Colorado’s priority system for water rights, and allows project planning and development to take place with the assurance that a water right exists for the project. It is not a proposal to actually build the reservoirs at this time. If the City fails to submit required documents to the Court, then it will relinquish these rights. If at a later date, the City decides to pursue the development of storage on either Castle or Maroon Creek, it will need to re-initiate a water court proceeding for new rights. There are no guarantees that the City will be successful in obtaining new storage rights, and even if it is, the priority date of these new rights will be junior to the conditional storage rights the City now holds. P19 IV. Page 2 of 4 With its long history of commitment to protection of the environment, in 2005, the City adopted the Canary Initiative recognizing the significant threat that global warming poses to our valley, its quality of life and to the global community. Since that time, the City established the Canary Action Plan in 2007, set emission reduction goals, monitors and reports on Aspen’s carbon emissions, has initiated a sustainability dash board, and is currently working on Energy Benchmarking (Council Goal # 8), as well as other programs. This monitoring, data research and reporting affirm that the temperatures in Aspen continue to increase, and in fact there are 23 more frost free days in Aspen than there were in 1980. These warmer days demonstrate that local snowpack, the primary source of the City’s water supply, is decreasing. In 2016, City Staff completed a Source Water Protection Plan and a Water Supply Availability Report (adopted via Resolution 81, series of 2016). The Availability Report projects the community water requirements and available supply 50 years into the future. The two variables used in these projections are climate and population. In the summer of 2016, the City initiated a public process to solicit feedback on its upcoming diligence filing for conditional water storage rights on Castle Creek and Maroon Creek. The independent services of Common Ground Environmental Consulting, LLC were retained to provide an unbiased facilitation of these meetings. CGEC’s summary of these proceedings is contained in Attachment A—Common Ground Environmental Consulting, Summary of Public Process. Staff has planned a two-step process for presenting information to assist Council in providing direction regarding the City’s conditional water rights. • Step One: Work Session on 9/20/2016 for staff and consultant presentation and to request additional data, • Step Two: Work Session on 9/27/2016 to review additional data and arrive at a decision. • October 10th Council Meeting – finalize actions per Council direction from work sessions as applicable. DISCUSSION: Typically, filing the required diligence applications for these conditional water rights is a task that staff has been directed to undertake as a part of its on-going mission to provide a legal, safe and reliable water supply. In 2016, the City’s heightened efforts related to water planning focused attention on future water needs and future supplies, including these long- held reservoir storage rights. In its ongoing efforts to encourage community participation and transparency, Council directed staff to initiate a public process in the very complex analysis required to respond to climate change and to plan for an unknown future. Staff is heartened by the response of the community to its water supply planning efforts. The support and involvement of the community helps to ensure that Aspen’s future water needs will be met in a well-planned and environmentally conscious manner. The public process reaffirmed that our community holds existing wilderness and other environmental values in high regard. In addition to local input, these conditional water rights received attention from outside groups, such as the Washington D.C. based American Rivers advocacy group. P20 IV. Page 3 of 4 Recommendations for path forward The City has embraced an integrated water supply approach to planning which aims to increase system resiliency while decreasing vulnerability during times of shortage through the use of all available tools. Staff continues to diligently identify, develop and implement these tools to meet its mission of providing a safe and reliable water supply for current and future citizens of Aspen, while remaining sensitive to environmental values and impacts. The City’s integrated water supply plan relies on the Maroon and Castle Creek storage rights as a tool to reliably satisfy future water needs. Water retained in the valley through storage can be released to bridge the gap between available water in the streams and community demand, while maintaining minimum instream flow requirements. Additionally, the impact to the community during periods of extended drought will be less if stored water is available. Recent studies, climate research and modeling, validated by local data, indicate a future with increasing temperature. This trend suggests earlier snowpack melt and runoff, which will lessen the available streamflow in late summer and fall. Warmer temperatures will also lengthen the growing season and increase transpiration rates of vegetation. Further, projected population increases, potential extended use by 2nd homeowners, and likely increased tourism place further demand on a finite water resource. Climate and growth uncertainties will influence the future of year 2066 in ways beyond those which can be fully contemplated in year 2016. However, given what we know now about changing climate and other variables and influences, it is prudent to retain our conditional water storage rights. More immediately, the City should actively and aggressively identify and develop new, reliable water sources and tools and forge partnerships whose impacts can diminish the scope and perhaps the necessity of these water storage projects. Staff is requesting that Council consider adoption of the attached draft Resolution which directs staff to: • Continue implementation of its integrated water supply system, including Water Conservation Measures (including, but not limited to, rate revisions and a new landscape ordinance); the Reuse Project, the well system, and other current plans for development of water supplies. • Initiate a collaborative process to evaluate existing and identify new alternatives and any other necessary actions to fill the projected future water supply and demand gap. • Investigate alternative locations and sizing requirements of the Maroon Creek Reservoir and/or Castle Creek Reservoir, and, and to report its findings back to City Council for further consideration and action as appropriate. • Proceed with the filing of the diligence application for the City’s conditional water storage rights on Castle Creek and Maroon Creek. FINANCIAL/BUDGET IMPACTS: Costs to file the diligence application are already included in the 2016 budget. P21 IV. Page 4 of 4 ENVIRONMENTAL IMPACTS: There are no environmental impacts associated with filing the diligence application. Prior to constructing the reservoirs, careful and thorough environmental studies will be required as a part of the approval process, including evaluation of alternatives. RECOMMENDED ACTION: Staff recommends that Council adopt Resolution XX, Series of 2016 (Attachment B) at the 1st regular Council meeting in October and direct staff and its legal counsel to submit appropriate documentation to the Court to retain the City’s conditional water rights. CITY MANAGER COMMENTS: ATTACHMENTS: Attachment A—Common Ground Environmental Consulting, Summary of Public Process Attachment B—Resolution Number XX, Series 2016 (DRAFT) P22 IV. COMMON GROUND ENVIRONMENTAL CONSULTING, LLC Larissa Read 970-633-0399 PO Box 267 www.commongroundenv.com Edwards CO 81632 larissa@commongroundenv.com Executive Summary Conditional Water Storage Rights Stakeholder and Public Process September 15, 2016 Since 1965, the City of Aspen has maintained conditional water rights for a reservoir on Castle and on Maroon Creek to plan for this community’s future water needs. To keep these rights, Aspen must submit a diligence filing this October. While this is a routine filing that occurs every six years, it is not a proposal to actually build the reservoirs. A conditional water right is a place holder in Colorado’s priority system for water rights. In summer 2016, the City of Aspen held a stakeholder and public process to solicit feedback on its upcoming diligence filing for conditional water storage rights on Castle Creek and Maroon Creek. The process included three components: 1. Stakeholder interviews and meeting: Sixteen stakeholders from nine organizations were interviewed in July and August 2016. The group met on August 3, 2016 for 2 ½ hours to di scuss the background and technical issues, and participate in a scenario planning exercise. 2. Public meeting: A public open house was held on August 4, 2016 to share information and solicit feedback. Approximately 40 members of the public, plus 10 city and county employees and 3 members of the press attended the 90-minute meeting. About half the meeting was devoted to an informational slideshow, background, and technical Q&A discussion. The remainder of the meeting was spent in small group discussions, which resulted in a spectrum of feedback ranging from retention to relinquishment of the city’s conditional water storage rights. 3. Public comment period: The city hosted a public comment period from August 4-19, 2016. Over 50 emails from individuals and 5 emails from organizations were received. All letters were in support of relinquishing the city’s conditional water storage rights. The following packet contains detailed summaries of the process, discussions, and outcomes from the entire stakeholder and public process, which was conducted by an independent contractor, Larissa Read of Common Ground Environmental Consulting, LLC, during summer and fall 2016. P23 IV. 1 Stakeholder Process for Feedback on Conditional Water Storage Rights Process summary: A stakeholder meeting to discuss the City of Aspen’s conditional water storage rights on Castle Creek and Maroon Creek was held on August 3, 2016. During the two weeks prior to the meeting, facilitator Larissa Read conducted stakeholder interviews with the attendees. The interviews included several open-ended questions intended to generate discussion and were each approximately 45 minutes in length. The stakeholder meeting was held from 11:30 a.m. to 2:00 p.m. at the Eagle County Community Center in Basalt, Colorado. The first half of the meeting included an overview slide show of the history, current status, informational maps, and a discussion about technical and legal matters regarding the conditional water storage rights. The second half of the meeting included a scenario planning exercise to consider possible futures for the Aspen community with respect to the conditional water storage rights. The following persons were in attendance: Table 1. List of stakeholder meeting attendees* Name Organization Laura Armstrong City of Aspen (note-taker) Hunter Causey Colorado River Water Conservation District Mark Fuller Reudi Water and Power Authority David Graf Colorado Parks and Wildlife Dave Hornbacher City of Aspen Chris Lane Aspen Center for Environmental Studies Rick Lofaro Roaring Fork Conservancy April Long City of Aspen Margaret Medellin City of Aspen Ashley Perl City of Aspen Thomas Probert US Forest Service Larissa Read Common Ground Environmental Consulting, LLC (facilitator) Matt Rice American Rivers Will Roush Wilderness Workshop Karen Schroyer US Forest Service Sloan Shoemaker Wilderness Workshop Jamie Werner Aspen Center for Environmental Studies *John Currier of the Colorado River Water Conservation District was also interviewed, but was unable to attend the stakeholder meeting. P24 IV. 2 Major themes: The following themes emerged from the stakeholder interviews and the discussion during the stakeholder meeting. In many cases, a question was raised by one member of the stakeholder group with other members of the group chiming in to answer the question and share their expertise. In this way, many but not all of the technical questions that came up were sorted out among the group themselves. Conditional water storage rights and the diligence filing The stakeholders were concerned about understanding what the implications would be if the conditional water rights were given up. They came to the conclusion that the main implication is that the city would have to “get in line” again in the future if they ever wanted water rights on those creeks again. They discussed how nothing would stop the city or a private owner from reapplying for these or similar water rights. They felt that a future filing might not be much different functionally than the current rights, but would be very different from a legal standpoint due to a change in priority. The group also discussed the implications of the current water rights, which are senior to many other rights at this time. They wanted to know what other entities have water rights on these creeks, and what those junior rights are decreed for. They realized that in the absence of these conditional water rights, instream flow would become a more senior water use, but that the city already honors instream flow as a matter of practice. There was a question about whether the rights could be used for underground rather than surface storage. The stakeholders also discussed the decree for the recreational instream flow for a kayak park. Several stakeholders wanted to know if the only way to retain the rights (for any future beneficial use) is to complete the diligence filing that would specify building the dams as proposed in 1971. They also discussed what other uses the potential reservoirs could be used for in addition to or in lieu of storage, such as wildlife habitat, surface recreation such as fishing or boating, keeping water in the stream, etc. One stakeholder shared an example of a study that indicated beaver dams can create an abundance of natural storage in lieu of dams or reservoirs. Some stakeholders focused their interview answers on restraint and conservation values, while others were concerned about the uncertainty about climate change and the possible future demands of users. Several suggested that if designed correctly, potential reservoirs could convey benefits to instream flow, wildlife, and other beneficial uses (such as recreation). Others felts strongly that ecologically intact stream corridors would provide the most overall benefits and remain in concert with community values. Public communication and education During the stakeholder interviews, a question was posed about what the most hopeful outcome of this process (summer and fall 2016) would be. Many of the stakeholders responded that education of the public about water rights and clear communication were important and hopeful outcomes. Several stakeholders commented that the process should build community understanding about water rights, how they affect a community, and what decisions managers are facing about water rights. The theme of public understanding and education was also raised during the stakeholder meeting, in the context of clear communication at the public meeting and afterwards. One person hoped that community members would gain enough knowledge to translate their education to help change local environmental and water policy. A number of stakeholders raised the issue that on one hand, the city has said they are not proposing or building these reservoirs at this time, while on the other hand, they must prove “can and will” during the diligence filing process. Some stakeholders felt this was duplicitous of city managers; others did not feel this way per se, but did agree that clarity with the public was of utmost importance. One mentioned that the issue of Castle Creek and Maroon Creek reservoirs surfaces every few years but then dissipates, as the city has never actually made a proposal to pursue construction. This stakeholder also suggested that tying a possible future proposal to water P25 IV. 3 resource thresholds might help the public feel there is a real, not arbitrary, trigger for a future decision. Another stakeholder reminded the group that from the public’s perspective, the character of the valleys may be of high importance, as well as an understanding of how these potential reservoirs would impact their character. Secure water supply The group discussed the security of adequate water supply for Aspen now and in the future. There was a great deal of conversation about the recent water supply availability study for the city, and whether it indicated or did not indicate a need for possible future storage. There are a number of possible futures that indicate Aspen would not need that water (to satisfy instream flow as well as needs of customers), but there are also some scenarios in which Aspen would need stored water and/or it would provide important redundancies in the system. The group was interested in understanding the relationship between possible future needs of the community, and the amount of water that could be stored in these potential reservoirs. One stakeholder summed up the question by saying that “water stored for drinking is one thing; water stored for green lawns is another.” Though it was not addressed at length during the stakeholder meeting, a number of stakeholders brought up the importance of considering agricultural and irrigation water now and in the future during the stakeholder interviews. One expressed concern that the conversation is so focused on potential future water needs, that the city might be overlooking the current needs such as “holes” (dry areas) in the Roaring Fork that appear each summer. Another reminded the group that the irrigation season will change in unknown ways with climate change; at the least, peak runoff will occur earlier so the irrigation season may have to start sooner. Another stakeholder reminded the group to consider the scale of these potential reservoirs and that community values vary with the scale at which you look at this situation. The stakeholders briefly discussed water availability in case of emergency, and whether or not Castle Creek and Maroon Creek would actually be the right locations for emergency storage. The group also wanted to know when and if Aspen water managers ever felt “pinched” for municipal water supply; the answer was that around 4th of July, with visitors and high occupancy, is when demand is highest. The group had a robust discussion about whether voluntary water conservation measures could adequately meet future needs, or if more prescriptive efforts were needed. Water resource planning efforts were also discussed, including the 2012 Roaring Fork Watershed Plan, the recent water supply availability study, and the upcoming Roaring Fork River Management Plan. The stakeholders learned how Aspen pulled its list of priority storage areas out of the State of Colorado Water Plan, and instead included them as possible actions in the Roaring Fork Watershed Plan instead. The resilience planning effort led by the city was also shared with the group, including the fact that water resources were at the top of the list of priorities by city managers concerned about resiliency. Relationship of these rights to the water supply in Colorado and beyond It was generally agreed among the stakeholders that these water rights do not directly relate to water supply or potential trans-basin diversions in the larger region. The reasons mentioned were two-fold: that the flow in these rivers is smaller than in others regionally, and there are no other water bodies upstream of these two potential reservoir locations. However, several stakeholders felt strongly that due to the complexities of western water law and the “dire” situation of the Colorado River, water is best retained in its home watershed, and that maintaining flexibility is important since the future necessity to move water around the state and region is unknown. There was discussion about how in the current situation with water in the Western U.S. the past does not always dictate the future, and predictions do not always turn out to be very accurate. Flexibility in the face of future uncertainty was mentioned by many stakeholders during the interviews. P26 IV. 4 Scenario Exercise: The stakeholders participated in an exercise to discuss plausible futures for the City of Aspen in relation to its conditional water storage rights on Castle Creek and Maroon Creek. The exercise prompted the stakeholders to look at two spectrums (indicated below by axes), one for local support for water storage (low to high) and the other for intensity of climate change in the future (low to high), for a total of four scenarios. The stakeholders were first asked to describe what the four scenarios would “look like” in the future (table 2), and then to discuss what actions should be taken in each scenario (table 3). The intent of this activity was to have the stakeholders consider likely futures (e.g., climate change impacts) as well as unknown futures (e.g., community and political support for traditional water storage facilities), and what management implications might be reasonable under each situation. P27 IV. 5 Table 2: Scenario Exercise Part One: What the Future Looks Like If… - Continue to educate: potential to need to educate the public in perpetuity - Public is willing to take more voluntary actions for water conservation - Less regulation from government - River health may be worse due to water storage - Public understands climate change and water resources - People are willing to act on their own, e.g. for water conservation - Resiliency education and efforts are not working - Year-round population has grown - People use storage as a “crutch” and don’t conserve as well - Summer uses increase in National Forest and in Aspen - Changes in seasonality of visitors; more in the shoulder seasons - Demand for flat-water recreation increases (boating, fishing, SUP) - Easier to educate the public if climate change is very bad - Government more willing and able to regulate - With extreme climate disruption: people might not be as willing to move or visit Aspen given food security concerns, isolation, etc. - Continue to educate: potential to need to educate the public in perpetuity - Public is willing to take more voluntary actions for water conservation - No one sees need for water storage: apathetic public - Less regulation from government - River health may be best here - People are willing to act on their own, e.g. for water conservation -Resiliency education and efforts are working - Year-round population has grown - Summer uses increase in National Forest and in Aspen - Changes in seasonality of visitors; more come in the shoulder seasons - Economic impacts on city such as increased utility prices; can’t make snow in the late fall so resort isn’t open as long, etc. - With extreme climate disruption: people might not be as willing to move or visit Aspen given food security concerns, isolation, etc. - Government more willing to regulate - Need to explore and act on alternatives to water storage - River health may be compromised Lo c a l s u p p o r t f o r w a t e r s t o r a g e LOW LO W Climate change intensity and impacts HIGH HI G H P 2 8 I V . 6 Table 3: Scenario Exercise Part Two: What Actions Should Be Taken in these Possible Futures? - Complete diligence filing but don’t construct reservoirs - Research and pursue alternatives to surface storage - Develop ways to capture peak flows (including surges) - Support regional planning downstream (Aspen is a headwater city) - Personal actions are more voluntary as surface storage provides needed water - Perfect rights on Castle Creek and Maroon Creek - Look for water rights elsewhere - Maintain a diversity of “beneficial uses” - Research non-traditional alternatives to surface storage (e.g. subsurface storage, natural storage such as beaver dams) - Focus less on regional planning; focus more on Aspen water storage - River health may decline due to storage; depends on design and implementation of reservoirs (some people felt stream health could be improved, i.e. instream flow maintained) - Research and pursue alternatives to surface storage - Evaluate whether to abandon conditional water storage rights - Pursue land management practices to hold snowpack - Push for changes in state law and policy - More regulation for conservation measures - Support regional planning downstream (Aspen is a headwater city) - Research and pursue alternatives to surface storage - Research non-traditional alternatives to surface storage (e.g. subsurface storage, natural storage such as beaver dams) - Evaluate if City Government have to fight public opinion and pursue water right or wants to give up the water right. - Evaluate whether to abandon conditional water storage rights - Push for changes in state law and policy - Increase in water sharing - Support regional planning downstream (Aspen is a headwater city) - Pursue water sharing agreements, such as ditch non- irrigation/diversion agreements. - Pursue stronger regulations for landscaping conservation and efficiency, xeriscaping, etc. (will need to make up for surface storage deficits) Lo c a l s u p p o r t f o r wa t e r s t o r a g e LOW LO W Climate change intensity and impacts HIGH HI G H P 2 9 I V . 7 Summary of Public Open House for Feedback on Conditional Water Storage Rights Process Summary: A public open house to discuss the City of Aspen’s conditional water storage rights on Castle Creek and Maroon Creek was held on August 4, 2016. The public meeting was held from 5:00 p.m. to 6:30 p.m. at the Pitkin County Library (Community Room) in Aspen, Colorado. The first half of the meeting included an overview slide show of the history, current status, informational maps, and a discussion about technical and legal matters regarding the conditional water storage rights. The second half of the meeting included a group breakout exercise for the public to discuss and consider possible futures for the Aspen community with respect to the conditional water storage rights. Approximately 40 members of the public attended the open house (about ten of whom declined to sign in). Approximately 10 city and county staff members attended as well. Some members of the public left after the informational overview and Q&A session. Several members of the press attended the meeting (Aspen Times, Daily News, and Aspen Public Radio). Larissa Read of Common Ground Environmental Consulting, LLC, facilitated the meeting and presented the informational overview. Q&A and parts of the technical presentation were covered by Dave Hornbacher and Ashley Perl of the City of Aspen. Eight City of Aspen employees assisted with the group breakout session in teams of two (CJ Oliver and Matt Kuhn, Stacy Keating and Mitch Osur, Karen Harrington and Cameron Doelling, and April Long and Linda Giudice). Open Discussion: Following the informational overview slide show, city staff answered questions from the public. Most of the questions related to the conditional water storage rights and the diligence filing. Other questions related to the recent water supply availability study and instream flows. The staff were asked about how the modeling for the water supply availability study and some of the climate action planning were conducted (e.g. how was population growth estimated). Others asked about how much potential reservoirs on Castle Creek and Maroon Creek would contribute to the City of Aspen’s need (need vs. storage potential). Group Discussion Exercise: The members of the public distributed themselves into four groups of approximately six people each. Each group was facilitated by a team of two city staff (see above) to administer questions and take notes. Three questions were asked of the public (see below). The first two questions posed a plausible future for the City of Aspen and asked the public what this would look like and what actions should be taken by the city in that situation. The third question was more direct, asking the public what they felt City Council should consider when making the decision to retain or not retain the conditional water storage rights on Castle Creek and Maroon Creek. A summary of the public input on these questions follows. Feedback on Question 1 (drastic climate change impacts): The public shared concerns about more frost-free days, a shorter ski season, and changes to visitation that might affect the economy. Some supposed that irrigation needs would also increase in this scenario, placing greater demands on instream flow. Some felt that conservation would not be enough, and the city should aggressively protect its water rights. There were concerns about whether other water users could capture the water and take it elsewhere in the state if the city were to relinquish its rights on Castle and Maroon Creeks. Others felt that diversions to far-off locales would be unlikely and that there would be nothing to fear in others taking the water rights. There was discussion of other communities in Colorado where in- P30 IV. 8 stream flow in August can now only come from reservoirs, whether people like it or not. Some expressed concerns that the city might have to haul water into city limits if needs were drastic. Possible actions generated by members of the public:  Develop stricter water conservation measures for irrigation  Develop new wells  City should aggressively protect its water rights  Look at alternatives to traditional storage, such as smaller dams/reservoirs rather than one or two large reservoirs  Increase water usage fees  Buy agricultural water rights Feedback on Question 2 (population growth in Aspen): The public shared concerns about whether population growth would ever occur. Some felt population would never change and that the City Council should research whether population growth would ever really occur in Aspen. Others believe that population will grow, and some believe that controls on growth are needed. They suggested implementing stricter conservation measures and population / growth controls rather than building reservoirs. Those who felt population would grow mentioned a longer ski season at Aspen compared to elsewhere due to elevation, and cooler temperatures compared to elsewhere for habitation. Some felt that protecting stream flows in this scenario is very important, but did not specify if that would be better managed with a reservoir or with free-flowing creeks. Others felt strongly that agricultural use of water, not municipal use, is the main problem. Possible actions generated by members of the public:  Water itself should be used as a restriction on development (e.g. by restricting water to developers, less development and thus less population growth would occur)  Aspen should set an example about what it takes to enact very strict conservation measures Feedback on Question 3 (feedback to Aspen City Council regarding the conditional water storage rights): The public shared a full spectrum of opinions. Some felt that the water rights should be relinquished now, so that there would be no future possibility of reservoir construction, in order to protect the ecological integrity and beauty of the creeks/valleys. These participants were concerned about the wilderness and pristine nature of these creeks/valleys, and felt the conservation values were of highest concern. Others felt that the rights should be retained for a variety of reasons: future water supply for Aspen, unknown climate change impacts, and unknown need for diversions into other parts of Colorado. Some mentioned the “Great and Growing Cities Doctrine” that would support the city retaining the rights into the future. The suggestion to sharply curtail irrigation was voiced by many people during the meeting, regardless of whether they supported maintaining or relinquishing the water rights. Some felt that conservation measures beyond irrigation should also be mandated with new policies aimed at water consumers. Others support research on natural storage solutions such as underground storage, beaver dams, or small reservoirs on golf courses. Some suggested that stricter conservation measures would be another opportunity for education of the public. P31 IV. 9 Some members of the public felt strongly that more data was needed to address the question of consumption versus the storage in these potential reservoirs, and how much impact stricter conservation efforts would have on water supply. Others felt strongly that enough data had been collected and enough studies have already been done. Some suggested building a water re-use facility. Some felt the city should maintain the right for another six years in order to do more research into other beneficial uses of the water rights other than traditional storage. A few people felt the city is using fear as a tactic (fear of need for storage in the future) as a way to convince the public to retain the conditional water storage rights. Some felt that the city would never build the reservoirs, so maintaining the rights is disingenuous. Others felt the process was open and appreciated the opportunity to share feedback with City Council. Some expressed concern about the objection process if a diligence filing were to occur (e.g. would the city be ready to defend “can and will”). Others discussed the “Great and Growing Cities Doctrine” as paramount to “can and will”, stating that the city has the legal right to maintain the rights as it projects future needs. P32 IV. 10 Facilitation Questions for City of Aspen Conditional Water Storage Rights Open House – 8/4/2016 Facilitation note-takers: Write the answers on separate paper; please number the answers with the corresponding “1b, 2c, etc” so we can collate them later. Question 1: Imagine a future in which water conservation measures in the community continue to be effective. For example, household and commercial use of water was considerably reduced due to all sectors of the community chipping in. Yet, due to climate change, severe drought, more frequent wildfire, and high temperatures affected the Roaring Fork Valley. Right now, climate change in Colorado is at the upper end of the spectrum of predictions for temperature increases over time. We know that we will have less snowpack, fewer days with freezing temperatures, and earlier snowmelt in Aspen. Remember, Aspen is a community that doesn’t have defined water storage; winter snowpack is the community’s water source. 1a. What would this look like? What would be happening in our community in this possible future? (For facilitator: What might change about water needs for homes, businesses, agriculture; what about city services needed?) 1b. What actions should City of Aspen take in this possible future? 1c. In this situation, under what conditions would it be important to have conditional water storage rights, in case future storage were needed? Why or why not? Question 2: You have probably heard that our state population is growing to 7.8 million by 2040; that’s 2.3 million new people. Here at home, Aspen has the capacity to have a much larger population and tourism continues to grow. Let’s imagine what happens if the homes that are now empty most of the year have occupants 6 or 9 months of the year. Remember, Aspen is a community that doesn’t have defined water storage; winter snowpack is the community’s water source. 2a. What would this look like in Aspen? What would be happening in our community in this possible future? (For facilitator: All those people require city services, like water for drinking, roads, locally grown food, and energy, and all the businesses who support them need the same things.) 2b. What actions should City of Aspen take in this possible future? 2c. In this situation, under what conditions would it be important to have conditional water storage rights, in case future storage were needed? Why or why not? Question 3: Let’s think about the City Council’s upcoming decision about retaining the conditional water storage rights for another six years. 3a. What do you think they should be thinking about? For example, should they be thinking about climate change, wilderness protection, population growth, water supply for in-stream flows, recreation, and wildlife? 3b. Are there any adjustments or changes you would suggest to the possible future reservoirs that would make them more acceptable to you? (Try to listen for options, not just “Yes” or “No”.) 3c. What actions or studies should be undertaken over the next decade or so, to inform future councils and reduce / understand uncertainty? P33 IV. 11 Summary of Public Email Comments on Conditional Water Storage Rights Process Summary: Public comment on the City of Aspen’s conditional water storage rights on Castle Creek and Maroon Creek was welcomed between August 4 (following the public meeting) and August 19, 2016 (though all letters that were received after the end of the comment period were included here as well). A separate city email box was set up (waterrights@cityofaspen.com). As of August 23, 2016, 54 letters to the email box had been received. An additional five letters were received by the following organizations: American Rivers, Pitkin County Healthy Rivers, Roaring Fork Conservancy, Western Resource Advocates, and Wilderness Workshop. An additional letter was received from Attorney Craig Corona on behalf of individual clients. A letter requesting additional public meetings was also sent by Wilderness Workshop and Aspen Center for Environmental Studies on August 12, 2016. All of these letters, except the attorney’s letter, are included in this packet. Where the sender’s location was attributed, the vast majority were from Pitkin County locations, while a handful of emails came from other parts of Colorado. About one-quarter of the emails referenced the wilderness area specifically. About two-thirds of the comments mentioned dam construction, not merely retention or relinquishment of conditional water storage rights. Letters from individuals ranged from empty emails sent from phones to several sentences in length. Public Comment Summary: All of the letters received, whether from individuals or organizations, were in opposition to the City of Aspen retaining its conditional water storage rights and potentially building dams in the future. Reasons to give up the conditional water storage rights or not to build dams/reservoirs included:  Natural and scenic beauty  Pristine nature of the creeks / valleys  Ruining what brings visitors to Aspen  Ruining what brings / keeps residents in Aspen  Overlap and damage to a designated wilderness area  City’s recent water supply availability study does not indicate need  Keeping the rivers “free”, “wild”, “pristine”  Maintaining the character of the two valleys  Maintaining “free flowing rivers”  Protecting ecological values  Protecting wildlife, wildlife habitat, and vegetation  Population growth is uncertain 50+ years in the future  Climate change / need for water is uncertain 50+ years in the future  There is not a current water shortage  The community has rebuilt itself from resource extraction already; don’t mar it again Concerns directed at the City of Aspen from the public included:  City must not care about beauty P34 IV. 12  City is not demonstrating fiscal or environmental responsibility  City cannot succeed in proving in water court that is proceeding diligently, nor that it can and will put water rights to beneficial use  City doesn’t need to be planning 50+ years in advance for water  City’s recent water supply availability study does not indicate need  Maintaining these rights are at odds with city / community values  Municipal use is the problem causing a water shortage  City wants dams / reservoirs so that “people can water their lawns” Ideas from the public included:  There are “much less pristine” locations where dams could be built  Build dams downstream of Aspen  Control population growth  Control municipal growth (development, building)  Conserve more water  Work with others for increased stream flow  The future will bring new / improved ways of conserving water  City has “many other ways to conserve and attain water”  Make the public golf course use native drought-resistant plant species Misunderstandings shared by the public:  About two-thirds of the emails cited dam construction as if it were imminent or the city had proposed building dams, rather than focusing on the question facing city council about retaining or relinquishing conditional water storage rights.  Some members of the public are misinformed that if the city gives up these rights, no others can have or claim the water. One person wrote, “Perhaps the more significant result is that if the city chooses to abandon these water rights they do not become available to another party.”  Some people believed that municipal use of water was the cause of water shortages. One person wrote, “We know that it has to do with municipal use and not with residential, corporations are use the bulk of water, which is why we have a shortage.”  Some people felt that the city wants reservoirs so that “people can water their lawns” or similar sentiments.  One letter mischaracterized the decision as a “proposed ordinance” of the City of Aspen. P35 IV. August 12, 2016 David Hornbacher Director of Utilities and Environmental Initiatives City of Aspen Dear Mr. Hornbachar This letter concerns the conditional water rights that the City of Aspen holds for reservoirs on Castle and Maroon Creeks. We want to thank the City for providing the opportunity for public feedback on these water rights and recognize that it is rare, if not unprecedented, for the public to have a chance to participate in the decision to file a diligence filing on a conditional water right. We appreciate the city hosting both a smaller stakeholder meeting and a public open house. Larissa Reed did an excellent job facilitating both meetings and we are glad she will be providing a written report to City Council summarizing public input from those meetings. We believe the complexities of water rights in general and the particulars of the City’s conditional rights on Castle and Maroon Creeks merit a robust community discussion and examination. Providing a forum for the public to ask questions and a understand the full context of the City’s water rights will be key for City Council to make an informed decision that represents the will and best interest of the community. The two meetings the City held on August 3rd and 4th addressed the basics of the conditional water rights, proposed reservoirs, and made the valid point that Aspen and the Roaring Fork Valley are likely to face a hotter, dryer, more populated future. However, in our opinion, many questions remain unanswered and several key issues were not adequately discussed. The press also recognized the desire for a more thorough public discussion of the issues surrounding the city’s water rights. Aspen Public Radio reported that the public meeting, “provided few answers to questions about what these complicated water rights actually mean for the community,” and noted, “at the end of the meeting, many questions and concerns remained.” (Aspen Public Radio August 7, 2016. Questions about water rights remain after city’s open house). Similarly, the Aspen Daily News described both the facilitated and public meetings as providing “limited time for questions” (Aspen Daily News, August 8th, 2016. Opposition likely to city’s Castle and Maroon water rights). We believe that, before City Council makes a decision on this critical issue, more public discussion and further opportunity for questions of City staff and Council are warranted. Specifically, we think it would be productive for the City to provide information to the public regarding the following issues:  Whether the City’s conditional rights provide any protections for the two creeks;  Whether the City’s conditional rights could be converted from storage rights to in-stream flow rights; P36 IV.  How much water the City currently uses and how much it anticipates using in the future for municipal and irrigation purposes;  Other options for storing water besides the proposed reservoirs on Castle and Maroon Creeks;  Alternatives to water storage to resolve any projected short-fall in municipal and irrigation water use;  The ecological impacts construction of the two reservoirs would have on Castle and Maroon Creeks;  Regulatory hurdles to building the two reservoirs;  The cost to complete similarly sized and located water storage projects; and  A comparison of the amount of water these two reservoirs would store with the amount of water the City of Aspen uses and anticipates using in the future. Recognizing the potentially controversial nature of the issue, we are not requesting that the City hold a forum for the public to express their opinions and we do not assume this will occur at the City’s work session scheduled for late September. Rather, we are writing to request the city help ensure a more informed citizenry on a complex issue, allow the public to ask thoughtful questions, and provide more information regarding the larger context of the water rights and reservoirs. Specifically we request:  An open house to allow the public to ask further questions;  Dissemination of information, either written or at a public open house of the issues described above;  A public site visit to one or both proposed dam locations. We would be more than happy to help the city with this work in any way we can. We recognize that the City of Aspen is going above and beyond what is legally required and historically conducted regarding diligence filings of conditional water rights and we commend the city staff for the outreach and public meetings already conducted. However, given the importance of the Castle and Maroon Creek Valley’s to city and area residents we believe more public outreach and information is critical for residents and City Council alike. Sincerely, Will Roush, Conservation Director, Wilderness Workshop Chris Lane, CEO, Aspen Center for Environmental Studies Cc: Larissa Reed, Steve Skadron, Ann Mullins, Art Daily, Bert Myrin, Adam Frisch P37 IV. Major Skadron and Aspen City Council Aspen City Hall 130 South Galena St. Aspen, Colorado 81611 Dear Major Skadron and Aspen City Council, American Rivers strongly encourages the City of Aspen to not file to maintain its conditional water rights for new dams on Castle and Maroon Creeks. Aspen does not need these dams for municipal water supply, climate resiliency, or for stream protection now or at any time in the foreseeable future. Aspen cannot demonstrate that it can and will build these dams in a reasonable amount of time. The conditional water rights for these dams do not provide any legal protection from new and extremely unlikely trans-mountain diversion proposals. Citizens of Colorado will not accept the development of these dams and the subsequent flooding of one of the state’s most iconic mountain landscapes. Aspen holds senior water rights in excess of 100 cubic feet per second (cfs) that are used for municipal water supply and municipal irrigation. These rights greatly exceed Aspen’s current and future demand. Aspen currently diverts between approximately 4cfs and 20cfs for all municipal uses. If Aspen’s future water demand tracks with other municipalities in the region, demand should decrease even if the city experiences small to moderate growth. In the event that water supplies significantly diminish in the future because of climate change, according to the city’s own water availability report, it will still be able to meet its water demands without jeopardizing current in-stream flow protections. The city does not need these paper water rights; therefore the rights have little monetary or practical value. The 150 foot tall concrete dams on Castle and Maroon Creeks will cost hundreds of millions of dollars to build, will degrade two free flowing streams, and will flood some of the most valuable wilderness in the country. Aspen will not be able to secure the necessary state and federal permits to build the dams nor can they afford to pay for them. Conditional water rights are placeholders in priority. Aside from the questionable value of a 1965 junior water right in the Roaring Fork Valley, these right are not “absolute” and therefore do not provide any legal protection from outside trans-mountain diversion proposals. As the council is aware, the threat of a new trans-mountain diversion on Castle and Maroon Creeks is not based in reality. Any new project would have to pass two mountain ranges, would likely cost billions of dollars, and would be junior to all the other water rights in basin including the instream flows and the recently appropriated recreational In-channel diversion on the Roaring Fork near Basalt. There is simply not enough water to justify a project of that scale. Politically, the people of Colorado will never allow the construction of new dams and the flooding of the Maroon Bells, Colorado’s most beloved wilderness area. It is not far-fetched, because of the Aspen’s status and global platform, that a debate to build new dams in pristine wilderness will extend far beyond the Colorado State line. The national trend is to remove dams in places like the Maroon Bells, not construct them. P38 IV. Aspen has the opportunity to do the right thing and let go of its conditional water rights for new dams on Castle and Maroon Creeks. Abandoning conditional water rights is not unprecedented. In recent years, the Colorado River Water Conservation District has abandoned several conditional rights in places they knew could never be developed. If and when climate change results in periodic severe reductions in water availability, Aspen has several options to increase its water security and build community resilience for a hotter drier future including increased conservation, curtailment of diversions for irrigation water, increased reuse, increased instream flow protections, sustainable groundwater development, water sharing agreements, and possibly natural storage solutions such as high elevation beaver ponds or aquifer recharge. In fact, the City’s recent water availability study concludes that these tools will be sufficient to address Aspen’s future water needs in the face of a changing climate, without the need for the new dams. If Aspen chooses to file its diligence for the dams on Castle and Maroon Creeks in October, the city will have to demonstrate to water court that there is in fact demand for the projects and that they are diligently working towards building them. The city will have to tell water court the opposite of what it told the public during recent public meetings on this topic- “While this is a routine filing that occurs every six years, it is not a proposal to actually build the reservoirs.” This is no longer a routine water rights filing and it is a proposal to build the reservoirs. Aspen cannot file with caveats, stipulations, or commitments to further study and review. The city will have to prove that it is a proposal and that it will build the dams despite the number of reasons highlighted above that demonstrate that it cannot. For all of these reasons, we hope that you can recognize that the right choice is to acknowledge that damming the Castle and Maroon Creek valleys is not in line with Aspen’s environmental values, is unnecessary, and is also legally and practically infeasible. We appreciate your considered thought to the decision you must make on whether to file, and I am available to discuss the issue if you wish. Sincerely, Matt Rice Director, Colorado River Basin Program American Rivers mrice@americanrivers.org 303-454-3395 P39 IV. P 4 0 I V . P 4 1 I V . August 25, 2016 Dave Hornbacher Utilities Director City of Aspen RE: Diligence filing for conditional storage rights on Castle and Maroon creeks Dear Dave, Roaring Fork Conservancy (RFC) recognizes and appreciates all of the work the City of Aspen (City) does to help maintain healthy rivers and streams in the Roaring Fork Watershed. The City has provided great stewardship in protecting the many tributary streams and the main stem of the Roaring Fork in the Aspen area. RFC also appreciates the City's willingness to listen to public input related to its conditional water storage rights on Maroon Creek and Castle Creek. While RFC understands the City's need to maintain flexibility in its municipal water supply, we have several concerns with the conditional water rights for (and ultimate development of) reservoirs on Maroon Creek and Castle Creek, including:  Based on the completed engineering and water availability study, the City appears to have sufficient water supply to meet its forecasted demand, without development of these reservoirs.  As the reality of climate change could likely result in a shorter runoff period, the construction of large dams on Maroon Creek and Castle Creek pose a greater threat to the ecological integrity and the iconic natural beauty of these drainages.  Alternative demand and supply side solutions currently exist to enhance the City's water security, including smaller scale storage projects, increased efficiencies and diversion reductions.  The construction of dams would result in needless, drastic alteration of the natural landscape of two of our State's most scenic places. RFC supports the City of Aspen exploring all of its water resources in a changing climate. Additional natural storage centers, water preservation, water re-use initiatives, and other mechanisms that we understand are also long term commitments of the City of Aspen should be given serious consideration in place of the potential future reservoirs. In short, RFC believes the concerns/risks outweigh the benefit in maintaining diligence on these water rights. Rather than prolong this debate for another 6-year diligence cycle, RFC believes that now is the appropriate time to cancel these conditional water rights and for the City to pursue any other water demand and supply initiatives. We appreciate your consideration of our comments. Sincerely, Rick Lofaro Executive Director BOARD OF DIRECTORS Pat McMahon President Diane Schwener Vice President Jennifer Sauer Treasurer Jeff Conklin Secretary Ted Borchelt Stephen Ellsperman Jim Light Rick Lofaro Executive Director Rick Neiley Don Schuster Larry Yaw PROGRAM STAFF Rick Lofaro Executive Director Heather Lewin Watershed Action Director Christina Medved Watershed Education Director Liza Mitchell Education & Outreach Coordinator Chad Rudow Water Quality Coordinator Sheryl Sabandal Development Associate & Office Manager Sarah Woods Director of Philanthropy P42 IV. August 19, 2016 Sent via email to waterrights@cityofaspen.com Aspen City Council c/o the Aspen City Water Department 130 S. Galena St. Aspen, CO 81611 Re: Upcoming Decision on Whether to Build Dams on Maroon and Castle Creeks Dear City Council Members, Western Resource Advocates appreciates this opportunity to comment on whether the City of Aspen should seek to renew its conditional water rights for large dams on Maroon and Castle Creek. Western Resource Advocates is a nonprofit conservation organization dedicated to protecting the Interior West’s land, air, and water. Since the year 2000, Western Resource Advocates has engaged with utilities, state, and federal government agencies to find solutions to meet growing urban water demands while protecting stream flows, endangered fish, and critical habitat. It is highly unusual for a municipality to solicit the public’s in put regarding a decision to renew conditional water rights. You and City staff are to be commended for exhibiting an exceptional degree of openness in making this important and impactful decision. Because filing a diligence application would be an assertion of intent1 to build these destructive and unnecessary dams in two of the most iconic alpine valleys in Colorado, we respectfully urge the City Council to pursue the many feasible and practical alternatives to these dam projects. There are many reasons why the City should not seek to build these skyscraper-sized dam structures on Maroon and Castle creeks; among them:  The City of Aspen can more than meet its foreseeable future water needs without building the proposed dams. As stated by Wilson Water, its analysis indicates that “the City can always provide sufficient potable and raw water supplies under [its] modeled demand and hydrology scenarios.”2 1 For the reasons stated below, it appears that the City lacks the requisite legal intent necessary to maintain these conditional water rights. See C.R.S. § 37-92-103(3). 2 Wilson Water Group, City of Aspen Water Supply Availability Study (2016 Update) at 22 (emphasis added). P43 IV. 2  The proposed use of new reservoirs to meet instream flows won’t work and doesn’t make sense.  The City and other local stakeholders should partner with the Colorado Water Conservation Board to pursue additional meaningful instream protections on Castle and Maroon Creeks.  The City is unlikely to qualify for a diligence decree before the water court. The City’s time, energy, and funds would be much better spent pursuing less impactful water supply alternatives and real streamflow protections for these creeks. The proposed dams, rendered below, represent an outdated concrete-and-steel approach to meeting water needs. Western Resource Advocates seeks to engage in a partnership with the City in pursuing a 21st Century vision for its water future. Renderings of the proposed reservoirs:3 I. The City of Aspen can more than meet its foreseeable future water needs without building Maroon and Castle Creek dams. The City of Aspen can more than meet its foreseeable future water needs without building these dams. A close review of the City of Aspen Water Supply Availability Study (2016 Update) by the Wilson Water Group, reveals that “the City can always provide sufficient potable and raw water supplies under [its] modeled demand and hydrology scenarios.”4 3 Available at www.wildernessworkshop.org. 4 Wilson Water (2016) at 22 (emphasis added). P44 IV. 3 II. The proposed use of reservoirs to meet instream flows won’t work and doesn’t make sense. The 2016 Update also reveals that the report’s projected water shortage is based not on the City’s municipal water needs but on a voluntary decision to not divert water in order to help meet and exceed the Colorado Water Conservation Board’s (CWCB) decreed instream flow water rights on Maroon and Castle creeks.5 As an initial matter, this would be an illegal use of the city’s conditional water storage rights. Under C.R.S. section 37-92-102(3), the CWCB has the “exclusive authority” to appropriate water for the state’s instream flow program. Colorado law does not recognize conditional water storage rights for use in the state’s instream flow program.6 The City cannot, on its own, use water stored in the proposed reservoirs to meet a CWCB decreed instream flow water right.7 Most importantly, while the city’s desire to maintain minimum flows in Castle and Maroon creeks is admirable, it does not justify the construction of large and environmentally damaging reservoirs. When the CWCB approves applications for instream flow water rights, it assumes that the right will not meet be met 100% of the time. In recent years, as a rule of thumb, the Board usually approves water rights that will be available at least 50% of the time.8 In other words, the Board’s determination to set a flow volume incorporates a judgment by expert fishery biologists that the natural environment in the subject creek can survive some period of time where the d ecreed flow rate is not met. Here, even the most extreme demand and climate scenarios in the 2016 Update show that the decreed instream flow water rights in Maroon and Castle creeks would be met in over 75% of years.9 This worst-case anticipated flow is consistent with the performance expectations that the CWCB usually has of its instream flow water rights. In addition, even under this most extreme water demand and climate scenario, the 2016 Update concludes that “all but 1.2 cfs [of the maximum anticipated instream flow deficit] can be mitigated via Stage 3 water restrictions, implementing the City wastewater reuse program and pumping the assumed maximum well diversion of 5.0 cfs.”10 While we encourage the City to consider additional ways to ensure healthy flows in Castle and Maroon Creeks, the analysis in the 2016 Update does not, factually or legally, justify the construction of environmentally destructive dam projects. 5 Wilson Water (2016) at 2, 11. 6 C.R.S. § 37-92-102(3)(c.5) (“[T]he board may not acquire conditional water rights or change conditional water rights to instream flow uses.”). 7 Accordingly, the City cannot invoke this use to demonstrate to the water court that it has a non -speculative intent to build the proposed reservoirs. C.R.S. § 37-92-103(3). 8 See, e.g., CWCB Staff Instream Flow Recommendation for Schaefer Creek at 7 (concluding that water is available for appropriation because the amounts claimed are generally lower than median flows, as estimated by a combination of gage data and a statistical hydrological model), available at http://cwcb.state.co.us/environment/instream-flow-program/Pages/2015ContestedISFAppropriations.aspx. 9 Wilson Water (2016) at 12-17 (under any scenario or year type, the percentage of years with an instream flow deficit never exceeds 25%). 10 Id. at 20-21. P45 IV. 4 III. A partnership with the Colorado Water Conservation Board could provide additional meaningful and effective instream protections on Castle and Maroon Creeks. The best way to protect these flows would be an instream flow water right. A conditional water right, like the ones at issue here, provides no legal protection against an outside entity seeking to appropriate water in Castle and Maroon creeks.11 To the extent that the existence of these “paper” rights might deter a potential appropriator, the deterrence effect of these reservoirs is nearly non- existent because, by Wilson Water’s own reckoning, the City does not need them to meet its foreseeable legal municipal uses.12 It follows that these rights would likely never mature into an enforceable absolute water right. These conditional reservoir rights cannot protect the natural environment in Maroon and Castle Creeks, and it appears that they would in fact inundate or fill significant portions of these protected instream flow reaches.13 If the City believes, as we do, that the current instream flow water rights in Maroon and Castle creeks are inadequate to protect the natural environment to a reasonable degree, it should seek additional appropriation or acquisition of water through the CWCB’s instream flow program. The original instream flow appropriations on Maroon and Castle creeks pre-date the CWCB’s current methodology for determining instream flow volumes and, as a result, failed to appropriate a peak flow that would better reflect the natural hydrograph on these creeks. A new appropriation protecting these peaks would provide real, legally enforceable protection and could help ensure that the natural environment in these streams is adequately preserved for generations to come. IV. The City is unlikely to qualify for a diligence decree before the water court. It appears unlikely – if not impossible – that the City will be able to demonstrate that it qualifies for a diligence decree for its conditional water rights on Castle and Maroon Creeks. The reasons why the City’s application appears likely to fail include:  Wilson Water’s 2016 analysis shows that the City does not need these water rights for their legally decreed purposes. As noted above, instream flows are the exclusive province of the CWCB.  It appears that both proposed reservoirs would occupy parts of the Maroon Bells Wilderness Area. 11 Board of County Commissioners of County of Arapahoe v. United States, 891 P.2d 952, 970-71 (Colo. 1995) (existing conditional water rights may not be considered when determining water availability for new conditional water rights). 12 Wilson Water (2016) at 22. 13 See Case No. 5-76W2947 (the Castle Creek instream flow of 12 c.f.s. year-round extends from the headwaters to the confluence with the Roaring Fork River), and Case No. 5-76W2945 (the Maroon Creek instream flow of 14 c.f.s. year-round extends from the confluence of East and West Maroon creeks to the confluence with the Roaring Fork River). P46 IV. 5  It appears that the City lacks a non-speculative specific plan and intent to place all of the claimed water to specific beneficial uses.  Based on publically available analyses and statements, it does not appear that the proposed reservoirs can and will be completed with diligence and within a reasonable time. Therefore, it appears that granting the City’s application would, among other things, violate the anti-speculation doctrine,14 and the “can and will” statute15. In our view, the City has the opportunity to move past outmoded dam proposals and instead show leadership by pursuing innovative and realistic strategies to secure its water future and protect the natural environment in Maroon and Castle Creeks. Several of these strategies are outlined in documents on Western Resource Advocates’ website and being utilized by other water providers. Thank you for your consideration of these comments. Again, we commend you and your staff for your remarkable willingness to solicit public comment on this important decision. Western Resource Advocates would be happy to discuss alternatives to the dam projects with you and your staff at your convenience. Sincerely, Robert Harris Senior Staff Attorney Western Resource Advocates rob.harris@westernresources.org (720)763-3713 14 C.R.S. § 37-92-103(3)(a)(II). The anti-speculation doctrine applies to diligence applications. Municipal Subdist. N. Colo. Water Conservancy Dist. v. OXY USA, Inc., 990 P.2d 701, 708 (Colo. 1999). 15 C.R.S. § 37-92-305(9)(b). P47 IV.  1   PO B OX 1442, C ARBONDALE, CO 81623 www.wildernessworkshop.org 970.963.3977 August 19, 2016 Aspen City Council c/o the Aspen City Water Department 130 S. Galena St. Aspen, CO 81611 Sent via email to waterrights@cityofaspen.com Re: Diligence Filing on the City of Aspen’s Conditional Water Rights for Reservoirs on Castle and Maroon Creeks Dear Mayor Skadron, members of the Aspen City Council and Mr. Hornbacher, Thank you for the opportunity to comment on the City’s upcoming decision concerning whether to maintain it’s conditional water rights to build reservoirs on Castle and Maroon Creeks. Wilderness Workshop recognizes and commends the City for the unusual, if not unprecedented, step of allowing public feedback and comment on a decision regarding whether to submit a diligence filing. We also understand the City has a duty to provide water to its citizens; is attempting to plan for the future in the face of climate change and population growth; and is committed to protection of these two creeks most notably through maintaining instream flows. We understand the City is considering its decision in the context of these larger issues. We encourage the city to consider other issues as well as they make this important decision. Wilderness Workshop has been working to protect and manage the Maroon Bells –Snowmass Wilderness Area for nearly half a century, similar to the length of time the City has held its conditional water rights on Castle and Maroon Creeks. Following Congressional designation of the Maroon Bells-Snowmass Wilderness Area (MBSW) in 1964, our organization was instrumental in more than doubling the size of the MBSW in the Colorado National Forest Wilderness Act of 1980. P48 IV.  2   We then worked closely with the Forest Service to develop a management plan for the wilderness area and have partnered with Forest Service on monitoring to inform management for over three decades. We were critical partners in establishing the bus system on Maroon Creek Road to provide sustainable access to the Wilderness area and we continue to conduct restoration projects and lead hikes into the MBSW. Our members have a deep and longstanding interest in protecting the MBSW and the adjacent public lands and waters. Wilderness Workshop understands that a municipality has an obligation to plan for the future and to ensure an adequate and secure source of water for its citizens. However, we strongly object to any progress towards damming Castle and Maroon Creeks and creating reservoirs (depicted in the visualizations below) that would inundate lands in these two iconic valleys. The reservoirs are completely out of synch with the character of the two valleys and the community’s values. The City’s contemplated diligence filing to maintain its conditional water rights suggests the City fully intends to build these two reservoirs, using the filing itself to demonstrate progress towards that goal. Per Colorado water law, the City must also demonstrate in water court that it “can and will” build these reservoirs in a “reasonable” amount of time to maintain its water rights1. For these reasons and others described below we urge the City not to submit a diligence filing and to abandon these water rights. Instead we hope you will pursue one or more of the several alternatives to these projects that can achieve the same goal: a reliable source of water for the citizens of Aspen. We would be happy to partner with you in achieving this goal.                                                                                                                 1  C.R.S.  §  37-­‐92-­‐103.   P49 IV.  3   Reservoirs on Castle and Maroon Creeks are inferior to numerous other solutions to providing the citizens of Aspen with a reliable source of water. The City’s recently completed Water Supply Availability Study (2016 Update)2 makes no mention of potential dams on Castle or Maroon Creeks but outlines several other options and alternatives to ensure a reliable source of water for Aspen including continued efforts at water conservation, a wastewater reuse program and additional municipal wells. All three of these options could provide viable alternatives to the reservoirs. Additionally, if the City is specifically concerned with opportunities for water storage we recommend the City consider non-traditional storage opportunities including underground storage and increasing the number of beaver dams on the two streams. While this might seem an odd solution, beaver dams hold on average between 17 and 35 acre- feet of water above and below ground and suitable beaver habitat will support 11 dams per mile of stream (Walker et al., 2010, attached). These dams hold water into the late summer and early fall and due to their leaky nature, release water into streams throughout the period the city is most concerned about shortages. Depending on the amount of unoccupied suitable beaver habitat, increasing the number of beaver dams in Castle and Maroon Creeks could partially address the City’s concerns about a lack of water storage. In addition to having several options to building dams on Castle and Maroon Creeks the City has ample time to study and put these solutions in place as the City’s own Water Supply Availability Study (2016 Update) concludes that “the City can always provide sufficient potable and raw water supplies”3 even taking into account population growth and climate change impacts. Therefore we see no risks concerning the City’s ability to continue supplying water to its citizens were the city to abandon its conditional water rights. Not only would other solutions have far less ecological and soci-cultural impacts, other strategies are also much more reliable than the potential reservoirs. Frankly, we reject the notion that these reservoirs will ever be built despite the City’s representations otherwise. We believe these barriers would prove insurmountable: • The a massive public opposition from locals and people and organizations across the country, • The significant cost, • The lengthy and unlikely approval process required by various federal and state laws. In sum these conditional water rights are in fact a very poor and unreliable source of future water due to their location, expense and lack of social license.                                                                                                                 2  Wilson  Water  Group,  City  of  Aspen  Water  Supply  Availability  Study  (2016  Update)   3  Wilson  Water  Group,  City  of  Aspen  Water  Supply  Availability  Study  (2016  Update)  page  22.   P50 IV.  4   Reservoirs on Castle and Maroon Creeks would create significant ecological impacts. While we commend the City for its commitment to maintaining instream flows in both Castle and Maroon Creeks, this commitment is neither a legal nor rationale justification to build dams on Castle and Maroon Creeks. First, the Colorado Water Conservation Board alone is delegated the authority to establish and administer instream flows, not municipalities. Second, while the instream flows are an important part of protecting these two streams, there are many other components necessary to ensure a protected and healthy stream with adequate water quality and quantity. These include: • A connected stream corridor with no dams to fragment the habitat and prevent movement of aquatic organisms, • An intact and connected riparian area, • Extensive wetlands, • A natural hydrograph Building the two dams would constitute a significant degradation to both streams, impacting all these components of stream health. Put another way, building the dams to justify maintaining the minimum in steam flow for a portion of the year would be akin to the Vietnam era mentality of “burning the village to save it.” Protecting Castle and Maroon Creeks. The City’s conditional water rights for reservoirs on Castle and Maroon Creeks provide no actual protection for the two creeks. Case law is clear that conditional water rights cannot be used to stop another water project from being built. This means that for the city to use their water rights to stop another party from diverting water out of the streams or building dams they would have to build the reservoir(s) to do so. While the presence of the City’s conditional water rights might give a moment’s pause to an outside party attempting to establish new water rights, they are highly unlikely to actually deter establishment of new water rights, since the City’s own Water Supply Availability Study (2016 Update) concludes that the City will always be able to provide water to its citizens and therefore, there will never be a need to build the reservoirs. Instead, if the City is sincere about enhancing stream protections, the best approach would be to work with Pitkin County and other local stakeholders to create a new instream flow that mimics the natural hydrograph and incorporates peak flows. Because the original instream flows on the two creeks pre-date current methodology for determining the minimum flows necessary to protect the environment, the City has an opportunity to update minimum instream flow requirements to seasonally mimic natural flow patterns. Wilderness Workshop would be happy to partner with the City in this effort. P51 IV.  5   Conflict with the Wilderness Act While there are numerous reasons why it is unlikely the two reservoirs will ever be built, due both to the reasons described above and the fact that they are greatly out of scale with any projected future water needs, our experience with the Wilderness Act compels us to highlight an additional hurdle to actually constructing the dams. As currently contemplated, both reservoirs would inundate portions of the Maroon Bells –Snowmass Wilderness Area and the Maroon Creek dam would actually be constructed partially inside the wilderness area. While this certainly violates the spirit of the law and would be loathed by wilderness lovers local and guests, the legal implications are worth discussing in more detail. Section 4(d)(4)(1) of the Wilderness act specifies that: “the President may, within a specific area and in accordance with such regulations as he may deem desirable, authorize prospecting for water resources, the establishment and maintenance of reservoirs, water-conservation works, power projects, transmission lines, and other facilities needed in the public interest, including the road construction and maintenance essential to development and use thereof, upon his determination that such use or uses in the specific area will better serve the interests of the United States and the people thereof than will its denial.4” While the Wilderness Act generally prohibits roads and permanent structures (two certain components of these two reservoirs), it is technically possible that the City of Aspen could petition the President for permission to build these two reservoirs. But if members of the City Counsel are committed to doing so, it will have to be while recognizing two issues: • The City would have to argue that building these two reservoirs better serves the national interests and people of the United States than not building them – a high bar indeed. Or put another way, the City would have to convince the President of the Unites State that the ability of Aspen residents and second homeowners to water their lawns in late summer was of a greater national interest than the internationally recognized ecological and scenic values of the Maroon Bells- Snowmass Wilderness. • This provision of the Wilderness Act has never before been invoked. Thus, the City of Aspen, globally recognized for it’s environmental leadership, would be setting a precedent that would open one of the country’s most treasured environmental laws to dam building, power line construction, road building and energy generation. For these reasons alone it seems reasonable for the City to recognize it will never build these reservoirs and it therefore should and must abandons its conditional rights to do so.                                                                                                                 4  Public Law 88-577 (16 U.S.C. 1131-1136) Emphasis added. P52 IV.  6   In conclusion, Wilderness Workshop recognizes the challenging position the City is in as it contemplates the best way to provide water for its citizens in the face of climate change and population growth and works to remain committed to preserving the local environment. Building reservoirs on Castle and Maroon Creeks would indeed ensure more water for the City, but at what cost? There are many other ways to mitigate and plan for the future that don’t involve damming two of the valley’s most treasured locations. Just as the City faces the challenge of providing affordable housing in Aspen but would never consider converting the Wheeler Opera House into affordable housing, we hope the City will recognize the importance of these two valleys to our community and indeed to our nation. The pristine and natural experience and the economic, ecological, and spiritual values Castle and Maroon Creeks provide for locals and visitors alike, far outweigh any of the benefits of these ill-conceived reservoirs. We encourage the City to recognize these existing natural values and permanently eliminate the possibility of damming Castle and Maroon Creeks by abandoning these improbable conditional water rights. Sincerely, Will Roush Conservation Director P53 IV. DRAFT Resolution # XX (Series of 2016) September, 2016 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, DIRECTING THE CITY MANAGER TO IMPLEMENT CERTAIN WATER MANAGEMENT MEASURES TO IMPROVE RESILIENCY AGAINST FUTURE CLIMATE CHANGE AND OTHER SYSTEM CHANGES WHILE CONTINUING EFFORTS TO MAINTAIN DILIGENCE FOR TWO CONDITIONAL WATER STORAGE RIGHTS ON CASTLE AND MAROON CREEKS ON BEHALF OF THE CITY OF ASPEN, COLORADO. Whereas, the City holds conditional water rights for the Maroon Creek Reservoir and the Castle Creek Reservoir, both of which were decreed in 1971, with 1965 appropriation dates; and Whereas, when these water rights were appropriated, this reservoir storage was an important component of Aspen’s long term water supply plan, particularly since the Fryingpan-Arkansas project was proceeding without the originally- planned compensatory storage reservoir on the upper Roaring Fork River; and Whereas, the purpose of conditional decrees like these conditional storage rights is to allow the City to proceed to perfect the water rights with the decreed priority dates, thereby allowing planning and development to proceed in an orderly progression with the assurance of decreed water rights prior to substantially investing in costly projects; and Whereas, preliminary site-specific work was conducted with regard to these conditional water rights, and they have been included in the City’s long-range water supply planning; and Whereas, the City has maintained these conditional water rights at the intervals required by law; and Whereas, the City has utilized an integrated water supply development approach both before and since the 1980 Water Management Plan, and these reservoirs have been included as part of the planning and development of the City’s integrated water supply system; and P54 IV. Whereas, the City, as a municipal water provider, must plan responsibly for the future water needs of its customers, and must develop a legal, reliable water supply to meet those demands; and Whereas, Colorado law and the diligence decrees heretofore entered for these conditional storage rights confirm that the City’s work on other features of its integrated water supply system demonstrates diligence in the development of these conditional water rights; and Whereas, the City has determined that it is responsible and prudent to continue to develop needed water rights and supplies in an orderly progression, as part of its integrated water supply system; and Whereas, in view of the significant undertaking necessary to develop these reservoirs, the City has performed and will continue to perform work on numerous other features of its integrated water supply system prior to undertaking the permitting and construction of these reservoirs; and Whereas, the City’s planning and phased development of its integrated water supply system continues to demonstrate its diligence in development of these conditional storage rights; and Whereas, in recent years, development of the City’s water rights and supplies has been informed by consideration of the impacts of global climate change, as well as anticipated water demands; and Whereas, during 2013 - 2015, the City participated in development of a Water Efficiency Plan for the Roaring Fork River basin, and developed its own Aspen Municipal Water Efficiency Plan, both of which contain strategies for addressing climate change; and Whereas, the City’s 2016 Water Supply Availability Study considers future water supply needs under different potential climate and population scenarios, and identifies supply gaps under certain scenarios, so long as the City maintains its long-held policy of instream flow protection; and Whereas, the City supports and was an active participant in the Colorado Basin Implementation Plan, which identified the continued due diligence for the preservation of the Castle Creek and Maroon Creek storage rights as an important project for securing safe drinking water in the region; and P55 IV. Whereas, Climate change scenarios considered in the 2016 Water Supply Availability Study were selected to capture a range of the current understanding of potential changes over next 50 years and offer no guarantee that climate change impacts will not be more severe; and Whereas, the City intends to provide a legal and reliable water supply and to that end can and will develop all necessary water rights, including but not limited to, Maroon Creek Reservoir and Castle Creek Reservoir. Whereas, the City should also continue to further investigate alternative locations and sizing requirements of the Maroon Creek Reservoir and/or Castle Creek Reservoir, and, if appropriate, seek water court approval for modification of one or both conditional decrees, with their existing appropriation dates; and Whereas, the City has conducted a public process to solicit input and promote collaboration and transparency regarding the required diligence applications for the conditional water storage rights; and Whereas, the City is dedicated to being a leader in developing and implementing innovative strategies for maintaining safe and reliable water supplies for a vibrant community while minimizing impacts to its surrounding natural environment, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby directs staff to: 1. File and pursue an application for finding of reasonable diligence in the development of the Castle and Maroon Creek conditional water rights on or before October 31, 2016. 2. Continue implementation of the City’s integrated water supply system, including Water Conservation Measures (including, but not limited to, rate revisions and new landscape ordinance); the Reuse Project, and other current plans for development of water supplies. P56 IV. 3. Initiate a collaborative process to evaluate existing and identify new alternatives and any other necessary actions to fill the projected future water supply and demand gap. 4. Investigate alternative locations and sizing requirements of the Maroon Creek Reservoir and/or Castle Creek Reservoir, and to report its findings back to City Council for further consideration and action as appropriate. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby directs staff to file and pursue application for finding of reasonable diligence in the development of its conditional storage rights on Castle and Maroon Creeks, and does hereby authorize the City Manager to continue with the development and implementation of the City’s integrated water supply system, and to initiate a process to evaluate existing and identify new alternatives to meet its projected water supply and demand gap, and to investigate alternative locations and sizes for the Castle Creek Reservoir and/or Maroon Creek Reservoir. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 10th day of October, 2016. Steven Skadron, Mayor I, Linda Manning, duly appointed and acting City Clerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held, October 10, 2016. Linda Manning, City Clerk P57 IV.