Parker: Frank Jaeger retires, 9News exposé contributes to board angst over his continued employment

From The Parker Chronicle (Chris Michlewicz):

Frank Jaeger, the Parker Water and Sanitation District’s general manager for 31 years, announced his plans to retire at the end of his contract in December, but some of the newly elected directors proposed immediately terminating his contract, just hours after they were sworn in May 17.

However, following a discussion about the advantages and disadvantages of losing the person with the most extensive knowledge of the water district’s history and operations, the board members decided to rescind the resolution to fire Jaeger.

A special executive session, which enables the board to privately discuss sensitive matters, is tentatively scheduled for May 21. Jaeger, who was reached at his office by phone a day after the May 17 meeting, believes the board will likely terminate his contract…

But Wasserman acknowledged that the board might have acted too hastily with the proposal to terminate Jaeger’s contract. He commended what he calls Jaeger’s “far-sighted” decision to build Rueter-Hess Reservoir, but says the project got too costly and out of control.

Jaeger, who makes no apologies for his blunt manner of speaking, said he has been unfairly targeted by the new board, the media and members of the public, despite what he sees as 31 years of devotion to “doing what’s best for our customers.”

Dozens of people attended the May 17 meeting, including Parker Water and Sanitation District employees, who were curious about what would happen to the man who has served as their general manager and been with the district longer than anyone else. Wasserman said it was “understandable” that they might be concerned and said they have no reason to fear losing their jobs.

From 9News.com:

Frank Jaeger has managed the Parker Water and Sanitation District since 1981. 9Wants to Know recently revealed that he and other managers were using government credit cards to pay for vehicle upgrades, numerous lunch meetings, and trips for conferences in places like Las Vegas and Florida. These expenses came as the district raised water rates for Parker residents.

Thursday night, Jaeger announced his retirement, but the new board members still proposed to terminate his contract, effective on Friday…

9Wants to Know found he and other managers had expenses like:

• $892 spent on new rims for the District Manager’s Yukon Denali
• Among dozens of car washes, sometimes several in a week, $560 was spent on a detail job for the District Manager’s Yukon Denali
• $6,000 spent on 127 lunch meetings attended by water managers, consultants and lawmakers at places like the Brown Palace Hotel.
• $20,000 spent on trips to Las Vegas, Florida and Washington D.C. for conferences
• $1,925 paid to marketing consultants to write board member bios

Jaeger defended those expenses as the cost of doing business and keeping up a clean image for the water utility.

I wonder if Mr. Jaeger still plans to be the driving force behind the Colorado Wyoming Coalition’s version of the Flaming Gorge Pipeline?

More Parker coverage here and here.

Voters ask for policy changes from Parker Water and Sanitation Board

From the Parker Chronicle (Chris Michlewicz):

Tracy Hutchins (2,714 votes), Bill Wasserman (2,572) and Kelly McCurry (2,591) were all voted to the water district’s board of directors May 8. Hutchins and Wasserman have been particularly vocal in their opposition to the board’s way of doing business.

Kelly McCurry, who has been in the water and sanitation industry for 22 years, believes his expertise could help guide the agency into the future, but also says that spending could be reined in. He said water bills could potentially be lowered through a change in oversight. McCurry said he is frustrated with the seeming lack of transparency while he tried to conduct research…

“We are really going to work on governance and accountability to the customers,” Hutchins said. “We’re going to do a top-to-bottom analysis of the organization as a whole and do same thing on the financial side.”[...]

Wasserman, who got involved in a recall election when the district tried to raise rates by 28 percent in 2009, said public input will be a large part of going forward. “Looking at the election results last night, it was a clear mandate from the populace: they want change,” he said.

More Parker coverage here and here.

Parker: The quest for a sustainable water supply leads to political fallout over Rueter-Hess Reservoir and water rights purchases

From the Parker Chronicle (Chris Michlewicz):

Tracy Hutchins, who served on Parker Town Council for eight years, has turned her attention to what she believes is negligence by the water district’s top authorities. She is decrying, among other dealings, the $7.7 million investment in farms and water rights in the Sterling area because she says the district has no way to transport the water back to Rueter-Hess Reservoir, a $105 million project that PWSD officials say is vital for storing water for Douglas County’s future. Instead of relying on underground aquifers that are rapidly being depleted, Parker Water planned Rueter-Hess as a mechanism to store water from wet years for use during times of drought. PWSD customers voted in 2004 to approve a bond issue that would use tap fees from ongoing development to pay for the reservoir construction. Hutchins says many Parker residents don’t know that when the real estate market crashed, the ratepayers were suddenly on the hook for the tab, which now stands at $97 million.

“In the bond election, we said we would use all means and methods necessary, including a tax increase in the event we could not make payments,” said Jim Nikkel, project manager and assistant district manager for PWSD. The quasi-governmental agency raised its mill levy for the 2011 tax year. Nikkel says water rate increases offset rising utility costs and don’t pay for the reservoir debt.

Hutchins says poor planning has saddled Parker’s water customers with debt, and the reservoir, which was officially opened in March, has only a puddle of water in it.

More Parker coverage here and here.

Parker: Rueter-Hess Reservoir is complete, just add water

Here’s the announcement from the Parker Water and Sanitation District website:

What does it take to construct a 72,000 acre-foot reservoir on Colorado’s crowded Front Range during years of belt-tightening and competition for scarce water resources? It takes 25 years of managing complex planning, permitting and construction projects, and more importantly, it takes the vision and tenacity of the water district managers in charge. In Parker, all these elements coalesced to complete Rueter-Hess Reservoir – the first major water storage facility on the Front Range in several decades.

Parker Water celebrated the completion of the massive Rueter-Hess Reservoir project on March 21st with more than 100 contractors, metro water partners and government officials in attendance on the tower of the Frank Jaeger Dam.

John Stulp, special policy advisor on water issues to Governor Hickenlooper, commended Parker Water and its partners in Douglas County for collaborating on a forward-looking project that will be needed as Colorado gains an estimated 4-5 million residents over the next 30-40 years.

Colorado State Senator Ted Harvey read a resolution adopted unanimously by both houses of the legislature the previous day, congratulating Parker Water on its foresight and persistence in planning and constructing Rueter-Hess Reservoir. Senator Harvey said, “We can’t bring in good companies to Douglas County and create jobs if we don’t have the needed resources to serve them. Rueter-Hess is a key part of that.”

The Douglas County Commission also adopted a resolution of congratulations for 50 years of service to customers in Douglas County. County commissioners Jack Hilbert and Jill Repella specifically cited the cooperation that led communities to work together on Rueter-Hess Reservoir.

To culminate the ceremony, the PWSD Board Members in attendance: Mary Spencer, Sheppard Root, Mike Casey and Darcy Beard, activated the release of water stored in the nearby Cherry Creek diversion structure into the reservoir. The crowd applauded as a remote camera captured the water flowing from the outlet into the south side of the reservoir.

Already, Rueter-Hess Reservoir holds some 4,000 acre-feet of water from flows captured in the reservoir beginning in May 2011 – enough water to serve 9,000 homes over the course of a year. The Douglas County water districts partnering in the reservoir, including the Town of Castle Rock, Castle Pines North, and Stonegate, will continue to capture storm runoff and reuse water, and plan to develop additional surface-water sources in the future.

More coverage from Clayton Wouliard writing for YourHub.com. From the article:

A completion ceremony was held March 21 by Parker Water and Sanitation, which paid for the construction of the reservoir that can hold 72,000 acre feet of water. The dam for it cost about $135 million, with a total cost of the project at about $200 million, including an environmental impact study, pumps and legal work, according to Jim Nikkel, assistant manager of Parker Water and Sanitation. The project was funded through a general obligation bond approved by voters in 2002.

“It’s the first of a long process of ensuring the area of northern Douglas County has sustainable water for now and in the future,” Nikkel said.

Nikkel said a water treatment plant is currently being built for $50 million that is slated to be finished by summer 2014 and will treat water from the reservoir. Currently, Parker gets its water from aquifers, which are not renewable. The treatment plant construction is being funded through revenue bonds and will process up to 10 million gallons per day, Nikkel said.

More Rueter-Hess Reservoir coverage here and here.

Flaming Gorge pipeline: Earthjustice, et. al. to FERC — ‘No’ should mean no to do-over for preliminary permit

From the Earthjustice blog (Doug Pflugh):

Million is back at it again, asking the Federal Energy Regulatory Commission to reconsider his application for a preliminary permit. Million’s request comes on the heels of FERC’s dismissal of his preliminary permit. You may remember that Million turned to FERC after an earlier attempt to permit this project was terminated by the Army Corps of Engineers last summer. That’s two no’s in less than one year. Will a third do the trick?

This week, Earthjustice, representing 10 environmental groups, filed papers with the Federal Energy Regulatory Commission (FERC) objecting to a do-over by FERC. FERC’s decision to deny the permit was right on the money and should have been the end of this scheme. But, with at least $1.4 billion at stake—according to Million—it’s easy to understand why he isn’t giving up easily…

Earthjustice represents a coalition of ten conservation groups with interests throughout the Colorado River Basin: Sierra Club, Center for Biological Diversity, Rocky Mountain Wild, Save the Poudre: Poudre Waterkeeper, Biodiversity Conservation Alliance, Wyoming Outdoor Council, Citizens for Dixie’s Future, Glen Canyon Institute, Living Rivers: Colorado Riverkeeper, and Utah Rivers Council.

More coverage from Mark Wilcox writing for the Wyoming Business Report. From the article:

Aaron Million’s confidential business plan to annually pump about 81 billion gallons out of Flaming Gorge and the Green River that feeds it has been revealed to the Associated Press, and it is no small wonder he has not taken ‘no’ for an answer. The plan would bring in an estimated net profit of between $1.4 and $2.4 billion. And that’s after construction costs of somewhere between $2.8 billion and $3.2 billion. And end users of the water would pay up to $117 million in annual operating costs based on a “cost plus 20 percent” business model with estimated operating costs of between $70 million and $90 million…

“Million’s plan is a blatant attempt to transform an important public good into billions of dollars of private profit,” said Earthjustice staff attorney McCrystie Adams in a statement urging the Federal Energy Regulatory Commission not to rehear Million’s request. Earthjustice represents various conservation clients on this issue. “We know from the developer’s public statements and documents that he’s looking for someone else to cover the millions of dollars of permitting costs that will undoubtedly be associated with what they describe as ‘the largest water infrastructure, pipeline, hydropower and storage project’ in the region.”

Adams’ statement refers to portions of the plan showing that Million’s Wyco Power and Water Inc. is seeking to raise $15 million through 2015 to get through the permitting process. While the amount raised so far is confidential, $5 million has been spent on the permitting process.

“It is clear that Million sees the Flaming Gorge Pipeline as his Mega-Millions jackpot and hopes someone else will pay for his tickets,” Adams wrote. “Fortunately, the odds of permitting this boondoggle are similar to winning the lottery.”

More Flaming Gorge pipeline coverage here and here.

Flaming Gorge pipeline: Aaron Million files a reconsideration request with FERC in response to their denial of the preliminary application

From The Pueblo Chieftain (Chris Woodka):

Environmental groups promise to fight the project at every turn, while a state task force will hear about Flaming Gorge pipeline proposals next week in Glenwood Springs. Fort Collins entrepreneur Aaron Million on Friday filed for a rehearing with the Federal Energy Regulatory Commission for his proposed 500-mile water pipeline from the Green River and Flaming Gorge Reservoir in Wyoming to Colorado’s Front Range. FERC rejected the application from Million’s Wyco Power and Water Inc. on Feb. 23.

Million’s response states that FERC made errors in its determination that the application was filed prematurely. The basis was that the water pipeline associated with hydropower projects has not been constructed. “Wyco contends that sufficient information and maps associated with the pipeline alignment have been provided to the commission,” Million stated in an 11-page request for rehearing and clarification. “We’re asking for clarification of why the decision was made, other than political pressure. That shouldn’t be a factor,” he said.

Million contends FERC has granted preliminary permits to other power projects in their infancy, including the Lake Powell pipeline project in Utah. He said Wyco plans to build the pipeline. Wyco already has issued requests for proposals to manage the project.

On Tuesday, the Flaming Gorge task force, formed by the Colorado Water Conservation Board at the request of the Arkansas Basin and Metro roundtables, will hear presentations from Million and from Frank Jaeger, whose Colorado-Wyoming Coalition has proposed a similar, but competing project.

More coverage from Electa Draper writing for The Denver Post. From the article:

On Feb. 23, the Federal Energy Regulatory Commission dismissed Wyco Power and Water Inc.’s application for a preliminary permit on the basis it was premature. Officials said there was no purpose in issuing a hydropower permit without information on construction and operation of the pipeline, which Million couldn’t provide. Conservationists hailed the decision as a victory for the environment because, they said, Million’s project, which would divert water from the Upper Colorado River Basin to Front Range cities, would drastically lower the level of Flaming Gorge Reservoir, threaten four species of endangered fish, and further harm ecosystems, wildlife and recreation. “We hope that FERC will reject this appeal, and the project will die a much-deserved death,” wildlife biologist Erik Molvar said in a statement from the Biodiversity Conservation Alliance…

Million, in a telephone interview from Fort Collins, said FERC had asked for some additional information when Wyco filed the application in September. If there were additional deficiencies in the application, he said, FERC should have told him before accepting the application. However, Million said, Wyco doesn’t need the FERC preliminary permit to keep moving forward with other elements of the project. “We already hold the water filings in the river and for federal water rights,” Million said. “We already hold the priority filings. We’re going to move through the process, regardless.”

More coverage from Brandon Loomis writing for The Salt Lake Tribune. From the article:

Utah has used the same rationale in seeking approval for a Lake Powell pipeline to St. George, and Million’s new application questions whether FERC imposed the same requirements in advancing that project. “Wyco contends that it will be counterproductive and cost-prohibitive to secure all necessary permits and authorizations to construct the pipeline without confirming the locations of the associated hydroelectric facilities,” the company said in its filing…

“FERC certainly got it right the first time,” Earthjustice attorney Michael Hiatt said. “This project would clearly devastate the Green River.”

More coverage from Troy Hooper writing for the Colorado Independent. Here’s an excerpt:

Critics say the pipeline would drain 81 billion gallons of water each year from the Green River, a tributary of the already stressed Colorado River, and the state of Colorado projects the pipeline could cost as much as $9 billion to build. The Colorado River Water Conservation District, Wyoming Gov. Matt Mead, county and local governments in southwestern Wyoming and a multitude of conservation groups are opposing the potential pipeline that Million claims is needed for Colorado to meet its rising demand for water.

“FERC made the right decision in February,” said Matt Rice, director of the Denver-based chapter of American Rivers. “It is clear this is nothing more than a speculative project that if ever built would severely harm the recreational, economic, agricultural and natural values of the Green River. Mr. Million is grasping for straws. It is highly unlikely that FERC will reverse their decision.”

Gary Wockner of Save The Poudre added that “Mr. Million seems to think this process is like an Etch-A-Sketch, where he can just keep shaking and redrawing until he finally wears down the federal agencies and the opposition. The Flaming Gorge Pipeline is a fatally flawed concept that would devastate the Green and Colorado River ecosystems — we will fight it at every opportunity.”

More coverage from Amy Joi O’Donoghue writing for the Deseret News. Here’s an excerpt:

In a document filed Friday requesting a rehearing before the agency, Million argued that FERC should question if it erred by tossing his application for a permit in February on the basis that it was “premature” or incomplete…

Million said the agency needs to consider if it let the amount of comments and objections on record by multiple agencies unduly sway the commission. Opponents like the Wyoming Game and Fish Department, the U.S. Forest Service, Sweetwater County and Colorado Springs Utilities — as well as numerous conservation organizations — have asked the commission to legally recognize objections raised.

When the commission dismissed the preliminary permit application for Million’s Regional Watershed Supply Project, the agency said until the pipeline is built and authorizations are in place, it would be premature move the hydropower project forward. “The commission’s order implies that the final pipeline alignment, all authorizations to construct the pipeline and even the construction of the pipeline should be completed prior to filing an application for a preliminary permit” Million’s rehearing request said. Such a requirement, he added, is counterproductive and cost prohibitive absent knowing where the hydroelectric components would be sited…

“The developer’s application for a rehearing is a waste of taxpayer dollars,” said Michael Hiatt, an attorney with Earthjustice.

More coverage from Mark Wilcox writing for the Wyoming Business Report. From the article:

Aaron Million and his company Wyco, first proposed the water project to the Army Corps of Engineers. The Corps rejected the application in July of 2011 after two years’s consideration because they said Million failed to provide sufficient information. Million then proposed the Flaming Gorge pipeline to FERC as a power-generating project that would simultaneously quench the Front Range’s thirst in Colorado, and received an initial dismissal Feb. 23. The multi-billion dollar pipeline would transport water more than 500 miles to a reservoir at its final destination in Pueblo, Colo. “As presented in Wyco’s application, these hydropower projects are exclusively dependent on water from the proposed water supply pipeline,” the dismissal stated. “However, this pipeline does not currently exist, and Wyco’s application does not provide any information about the timeline for seeking and obtaining the necessary authorizations for the construction and operation of such a pipeline.”

Additionally, officials cited a lack of information on the route the pipeline would take through public and privately held lands. “Until…authorizations have been obtained for a specific route or the process to identify a specific route has been substantially completed, Wyco will be unable to prepare “[s]uch maps, plans, specifications, and estimates of cost as may be required for a full understanding of the proposed [hydropower] project,” the order read.

While the initial government dismissal was based on technicalities, many environmentalist groups are pushing for a more permanent dismissal. “Anyone who tries to divert Wyoming’s Green River over the Continental Divide doesn’t appreciate the value that it provides for native fish and wildlife, local economies and the western way of life,” said Earthjustice attorney Michael Hiatt in a statement. “The Flaming Gorge Pipeline—one of the biggest, most environmentally damaging water projects in the history of the western United States—would irreparably damage the Green and the Colorado River downstream.”[...]

Another group is now touring the region with a short film and presentation that reflect the damage the pipeline would do to Flaming Gorge and the Green River’s $118 million outdoor recreation economy. Studies indicate the lost water could raise salinity levels in the gorge and river to lethal levels for fish and other marine mammals. Opponents of the pipeline also indicate the potential downsides to mammals of building a 10-foot pipeline over the Continental Divide. “This thing is still on the rails,” said Walt Gasson, Trout Unlimited’s endorsed business director, “And still constitutes — to my way of thinking — to our way of thinking, a clear and present danger to wildlife conservation in Wyoming.”

More coverage from Steve Lynn writing for the Northern Colorado Business Report. From the article:

“[Wyco Power and Water Inc] respectfully requests that the commission grant re-hearing of the dismissal of preliminary permit application for the regional watershed supply project and to issue the preliminary permit for a term of 36 months,” the company stated in the document…

The pipeline would help meet the water needs of Colorado, which faces a water supply shortfall of between 500,000 and 700,000 acre feet in the next two decades, Wyco principal Aaron Million has said. He contends the federal government will take steps to protect river flows for recreation as well as enhance fisheries.

From the Denver Business Journal:

The Associated Press reports that Aaron Million of Fort Collins filed the request Friday with the Federal Energy Regulatory Commission…

FERC’s permission was needed for the pipeline’s water to be used to generate electricity.

More Flaming Gorge pipeline coverage here and here.

Parker: Rueter-Hess opening celebration recap, 72,000 acre-feet surrounded by 2,000 acres of open space

From the Parker Chronicle (Rhonda Moore):

District manager Frank Jaeger, who led the charge to build Rueter-Hess, welcomed dignitaries at the March 21 celebration, atop the dam of the 72,000 acre-foot reservoir.

Originally planned as a 16,000 acre-foot reservoir, the project was expanded with the financial support of Castle Rock, Castle Pines and Stonegate to its present capacity in hopes of serving as a regional storage system, Jaeger said.

“We started planning for this 27 years ago when we recognized the need for a renewable source of water for Douglas County and this area,” Jaeger said. “You’re now sitting (along) what will be the jewel of Douglas County and what will be the provider for Parker and its partners. This is one step in a long journey.”

The reservoir project includes 2,000 acres of open space, contingent upon future funding, according to the district. If financing comes through for recreational use, activities could include fishing, hiking, cycling and non-motorized boating.

Completion of Rueter-Hess, which is owned and managed by the Parker Water and Sanitation District, came the same year that the district is celebrating its 50th anniversary.

Rueter-Hess Reservoir is about three miles southwest of Parker and, when filled, will have a surface size of 1,140 acres, 50 percent larger than Cherry Creek Reservoir. On grand opening day, the reservoir was filled to a depth of about 57 feet, with enough water to serve 9,000 houses for one year.

More Rueter-Hess coverage here and here.

Parker: Rueter-Hess Reservoir celebration this week

Parker and other South Metro communities will celebrate the opening of the largest Front Range reservoir since Aurora Reservoir this week. Here’s a report from Chris Woodka writing for The Pueblo Chieftain. From the article:

Parker Water and Sanitation has completed Rueter-Hess Reservoir, a 72,000 acre-foot storage facility that will store water for Parker and surrounding communities in the South Denver area. “The project is a significant accomplishment for Parker Water and Sanitation District, its customers and the entire south metropolitan area. Congratulations is due all around,” said Frank Jaeger, manager of the district…

Rueter-Hess has been in the planning stages for 25 years and under construction for the last eight. It cost $165 million to build, including $56 million from Castle Rock, Castle Pines North and Stonegate, which like Parker are located in Douglas County…

The other Douglas County communities joined the project in 2008, expanding the capacity of Rueter-Hess by 56,000 acre-feet. The reservoir still must undergo state safety inspections before it can begin storing water. It will collect water flows from wet years for use during summer months and dry years. It is the largest Front Range reservoir to open since Aurora Reservoir with a capacity of 36,150 acre-feet, began filling in 1990.

More Rueter-Hess Reservoir coverage here and here.

Lamar pipeline: The Lower Ark Board listened politely (and critically) to GP Resources’ project preview yesterday

From The Pueblo Chieftain (Chris Woodka):

The board had questions about the projected yield of the project, the problem of brine disposal from a proposed treatment plant and the idea of moving water out of the Arkansas Valley — which goes against the mission adopted by the district after voters formed it in 2002. “I compliment your approach, opposed as I am to any water leaving the valley,” said Reeves Brown, a Beulah rancher who sits on the Lower Ark board. “There’s a limit to what we think agriculture can give up in order to support growth in Colorado.”[...]

Upon questioning from the Lower Ark board, Nyquist said the only definite use for the water is in Elbert County. The Cherokee Metro District in Colorado Springs and Castle Rock in Douglas County have been approached, but decided on other options, at least in the short term, Nyquist said. “Right now, the pipeline ends at Falcon,” Nyquist said.

“It’s only a short distance to Reuter-Hess Reservoir (in Parker), which has 60,000 acre-feet of empty storage space,” said Jay Winner, general manager of the Lower Ark district…

GP is looking at either deep injection of brine or a solar heating system that would evaporate the water [ed. by-product of the proposed reverse osmosis water treatment plant]. The heating system, which could also generate steam to power turbines, has not been tested on a large scale, Nyquist said. It would also generate 16 truckloads of salt per week. “It could be used as sidewalk deicer,” Nyquist said. “As a private business, we will figure out another manufacturing opportunity for something that would just be waste.”[...]

[Karl Nyquist] said the assessed valuation of the ground on which the treatment plant is built would be greater than the value of the ground dried up. The combined wages from jobs at the treatment plant, reservoir and continued farm operations would more than make up for the temporary farm jobs that would be lost as a result of the dry-up, Nyquist said.

More Lamar pipeline coverage here.

The Parker Water and Sanitation District may lower their mil levy 31%

From the Parker Chronicle:

Said Mary Spencer, President of the [Parker Water and Sanitation District] Board, “The tap fee income PWSD has received from new development allows us to pay debt and reduce property taxes from 14.925 mills to 10.172 mills in 2012. This translates to a savings on property taxes. The reduction in the mil levy also includes a onetime reduction in the operating portion of the mill levy by 0.925 mills to payback property taxes plus interest that were collected in excess of limits allowed under TABOR. In addition, the Board is presenting to their customers, at the October 17, 2011 budget hearing, that there be no increase in the 2012 wastewater rates and only a 4% increase in water rates. The 4% increase for the average in house use of 6,000 gallons is $1.59 per month…

The Board will consider the proposed budget for approval at the October 17, 2011 Board meeting to be held at 7 PM at the District’s North Water Reclamation Plant located at 18100 E. Woodman Dr., Parker , CO 80134.

More Parker coverage here.

Castle Rock: Three water providers show up at public meeting to pitch solutions to the city’s long-term supply needs

From the Castle Rock News Press (Rhonda Moore):

Years after launching an effort to plan for a long-term source of renewable water, Castle Rock put out an invitation to hear from water providers that might be able to compete with the Water, Infrastructure and Supply Efficiency program, long touted as the solution to meet the needs of Castle Rock and several south-metro area municipalities.

Among the water providers that submitted bids were Renew Strategies, headed by former Gov. Bill Owens; Stillwater Resources, which acts as a broker to match providers with municipalities like Castle Rock; and United Water, which serves public water districts such as the East Cherry Creek Valley Water and Sanitation District and the South Adams County Water District.

WISE, a project from the South Metro Water Supply Authority, was not among the providers that responded to the request for proposal. WISE has long aimed to buy its water from Aurora and Denver and store it in the Rueter-Hess reservoir. The Army Core of Engineers earlier this year notified Rueter-Hess officials that the plan violates a provision of the reservoir’s federal permit, and town councils from Aurora and Denver have yet to approve a proposal for the WISE project.

The responses included a proposal from Renew Strategies to acquire underground water from the Lost Creek Basin for between $23,000 and $24,000 per acre foot, plus infrastructure costs of up to $75 million; Stillwater’s option to purchase 4,000 acre feet of Boxelder farm water rights for about $21,000 per acre foot; and United Water’s proposal to sell South Platte surface water to Castle Rock for $23,850 per acre foot, which includes about $9 million in infrastructure costs.

More Denver Basin aquifer system coverage here.

Castle Rock: Wednesday the Town Council and the Town Utilities Commission will hear from water providers who want to supply the long-term needs for the town

From the Town of Castle Rock via the Castle Rock News Press:

Members of the public, along with Town Council and the Town Utilities Commission, will hear from the groups that wish to provide the Town with long-term water at a special meeting Sept. 14.

The meeting will begin at 6 p.m. in Council Chambers at Town Hall, 100 N. Wilcox St.

Three of the four groups that have been short-listed in the search for the Town’s long-term water provider – Renew Strategies, Stillwater Resources and United Water – will each make a half-hour presentation, followed by questions from Town officials and the public.

The fourth proposal – the WISE agreement between South Metro Water Supply Authority, Aurora Water and Denver Water – is being reviewed by the Aurora City Council prior to being released to the public.

All four proposals will be evaluated against the same criteria, which include the opportunity to succeed, cost, local partnership opportunities, existing infrastructure, experience and water rights.

Seven proposals in all were received in response to the Town’s June request for water supply proposals. All of those proposals were reviewed against the same criteria in placing the four remaining proposals on the short list. At [this] week’s special meeting, the three groups will introduce their projects and provide information on their concept, water supply characteristics and costs.

This effort to secure a long-term water source is just one component of the Town’s Legacy Water Projects – the goal of which is to transition the Town to 75 percent renewable water by the time it is built out. (All of the Town’s water currently comes from nonrenewable wells.)
There are two other major components to Legacy Waters:

• The purchase of water storage space in Rueter-Hess Reservoir, which will open next year near Parker
• The construction of a water purification facility in Castle Rock, which will provide for 35 percent of the Town’s renewable water needs by 2013

Additional funding will be needed to secure the water that is needed for the Town’s future. The Town may hold a property tax election in 2012 or 2013 in order to fund the Legacy Water Projects.

More Denver Basin aquifer system coverage here.

Flaming Gorge pipeline: Frank Jaeger (Parker Water and Sanitation District) and others are urging the state to continue looking at the proposed project

From The Pueblo Chieftain (Chris Woodka):

“While we are encouraged that the Flaming Gorge discussion sponsored by the roundtables and state of Colorado will attempt to foster agreement on key issues and take a fair look at the project, we are concerned that many groups are engaging in a political attempt to intimidate the participants and bias or terminate the process,” Parker Water and Sanitation Manager Frank Jaeger wrote in a recent letter to key state officials.

Environmental groups last month announced opposition to the study of the project by roundtables…

The [Colorado-Wyoming Cooperative Supply Project] is awaiting U.S. Bureau of Reclamation modeling of the Colorado River basin, expected to be complete later this year, before it wraps up its feasibility study launched in 2010. Since then, the group has further defined its needs: 105,000 acre-feet annually from the project to meet growth estimates to the year 2070…

The Colorado-Wyoming Coalition’s proposed project helps meet several positions taken on water by Gov. John Hickenlooper, Jaeger said. Those include:

- Protecting agricultural water.

- Providing an adequate supply of water to promote a strong economy.

- Helping to fill the municipal water gap identified in the 2010 Statewide Water Supply Initiative.

- Supporting the portfolio of strategies identified by the Interbasin Compact Committee: reuse, conservation, alternative agriculture-municipal transfers, completing identified projects and developing new projects.

More Colorado Wyoming Cooperative Supply Project coverage here.

Federal funding may become available for the south Metro suburbs, Aurora and Denver to use for the WISE project

From The Denver Post (Bruce Finley):

Suburban water authorities said the project [Water Infrastructure Supply Efficiency or WISE], designed to reduce reliance on dwindling underground water, will cost about $558 million.

U.S. Bureau of Reclamation officials said “rural water supply” funds may be available for the project, if it survives a detailed feasibility review. Congress would need to authorize the federal funding, which could decrease the bill passed on to water customers. “What we’re looking at: Is this project capable of being completed? Is the cost-benefit going to work out? Is it going to be beneficial?” Bureau of Reclamation spokesman Peter Soeth said.

Meanwhile, a crucial wastewater purchase deal with Denver and Aurora has yet to be done. How much wastewater could be diverted, and how often, remains under negotiation. The suburbs told federal officials the WISE project would deliver 5,000 to 11,000 acre-feet a year for the first five years, then as much as 37,000 acre-feet a year…

The federal rural water-supply funds could be used because suburbs with populations under 50,000 are deemed “rural,” said Mark Shively, executive director of the Douglas County Water Resource Authority. “We have very aggressively pursued this opportunity,” Shively said. “We’re now about 20 percent into the feasibility study.”[...]

Beyond pipeline construction, the proposed project involves new storage of treated wastewater in surface reservoirs and by injecting it into depleted aquifers. “We have a couple reservoirs we’re looking at,” Shively said. “Between the Chatfield and Rueter Hess (reservoirs) we have a good amount of storage.”

Here’s the report from Reclamation.

More WISE project coverage here.

Parker Water and Sanitation and Stonegate are in merger discussions

From The Denver Post (Bruce Finley):

…utility managers propose to merge water systems to spread debt and increase efficiency. It’s the sort of consolidation that industry leaders anticipate, in Colorado and nationwide, as problems with water supply and aging pipes intensify. But the Parker-Stonegate deal has set off a political storm. On Wednesday night, more than 170 Stonegate residents attended the latest informational meeting, and a majority indicated in an informal vote that they opposed the merger. “Nobody in our neighborhood understands what is going on,” said Stonegate resident Lisa Nejedlow, whose residential water pressure recently decreased sharply. “I don’t want to go with Parker. I don’t trust them. I think they have too much debt ($214 million) and they are trying to go into other people’s pockets.”[...]

If Parker (population 45,000) and Stonegate (11,000) were to merge their water systems, it would be the first signficant consolidation in the south metro area. There are more than 25 water utilities on the Front Range. Suburban developers created most of these special-use districts. Some serve as few as 25 people…

Stonegate and Parker residents would face property-tax hikes as well as rising water bills whatever they do. But hooking up with Parker’s system could solve Stonegate’s problem of having to upgrade its sewage-treatment system — estimated to cost at least $10 million. That expense would add to Stonegate’s $30 million debt from sinking 13 super-deep municipal wells, building a pool and community center and other spending, said Stonegate metro district manager Mitch Chambers…

Stonegate board members are divided. “We need to explore other options,” said Mike Sjobakken, one of two board members who are opposed, noting that a former Parker utility-board member who resigned amid controversy has been hired to help Parker project who would pay what if the utilities merged. “It would make sense to consolidate,” but maybe with multiple entities, not just Parker, he said.

More South Platte River basin coverage here.

Arapahoe County Water and Wastewater Authority deals are the subject of a Denver Post investigation

From The Denver Post (Karen Crummy):

Arapahoe County Water and Wastewater Authority, known as ACWWA, proposes delivering its excess water to Castle Rock, even though the water isn’t yet approved for residential use. Castle Rock officials are wary. “We’re comparing projects. We’re not rushing into anything,” said Ron Redd, the town’s utilities director. “We need to make sure we partner up in a secure, long-term water deal. We can’t afford to make a mistake.”[...]

“Given ACWWA’s current surplus of treated and untreated water capacity and Castle Rock’s future water demands, a joint solution involving Castle Rock, ACWWA and United could be advantageous for all parties,” wrote Jim Dyer, ACWWA’s government-relations director, in a Feb. 11 letter to Redd…

Ten days ago, Redd gave the Town Council a memo that outlined the proposed project: South Platte River Basin water would be treated near Barr Lake and conveyed south through a pipeline to a delivery point near E-470 and Smoky Hill Road. Castle Rock would then have to build infrastructure to get the water to the Rueter-Hess Reservoir in Parker and then to the town service area. Redd’s memo points out his initial concerns, which include the town’s reliance on water that must be changed from agricultural use to municipal use…

Redd and his staff are analyzing the ACWWA/United proposal and another one from WISE — Water, Infrastructure and Supply Efficiency. WISE is a joint collaboration among Denver Water, Aurora Water and the South Metro Water Supply Authority (of which Castle Rock is a member and Redd is board president).

More South Platte River basin coverage here.

CWCB: New transmountain pipeline concepts update

From The Pueblo Chieftain (Chris Woodka):

The Colorado Water Conservation Board is looking at three new transmountain possibilities and two pumpback plans in the Arkansas and South Platte river basins in an analysis of supply options that could provide between 100,000 and 250,000 acre-feet per year of new water to the Front Range.

Only one of the projects, a 540-mile pipeline from Flaming Gorge Reservoir in Wyoming to Colorado’s Front Range, is actively being pursued. Entrepreneur Aaron Million and the South Metro Water Supply Authority both looking are at it. The “Big Straw” plan, or Colorado River Reconnaissance Project, was not evaluated in the latest study because of its high initial cost to build. It would bring water from the Colorado River near Grand Junction to the Front Range. Other projects studied were from Blue Mesa Reservoir and the Yampa River. The Green Mountain pumpback plan also was included in the study, although it would provide about 68,000 acre-feet annually — less than the other 100,000 or 250,000 acre-feet plans.

The Arkansas Valley plans would move water from either La Junta or Avondale to Rueter-Hess Reservoir near Parker. From either place, the cost would be nearly $100,000 per acre-foot over the 50-year life of the project and supply 100,000 or 250,000 acre-feet, according to a report by CDM engineering. All of the other options come in around $80,000 per acre-foot or less over 50 years. One of the South Platte options would cost around $70,000, while the Green Mountain option is about $40,000 over the life of the project. The reason for the discrepancy would be the need for reverse-osmosis, coupled with unproven methods of zero liquid discharge, to bring Arkansas Valley water up to drinking quality…

The new report, now in draft form, will be part of a Colorado Water Conservation Board’s water needs assessment expected to be complete in January.

More CWCB coverage here.

Rueter-Hess Reservoir: Castle Rock residents can get up close and personal with the project August 7

From The Douglas County News Press:

The Rueter-Hess Reservoir, presently under construction in Parker, is an important part of Castle Rock’s sustainable water strategy. The town is offering residents this chance to tour the reservoir before it’s filled with water. Castle Rock residents are invited to take a self-guided driving tour from 9 a.m. to 1 p.m., Aug. 7.

Rueter-Hess is key to Castle Rock’s long-term water supply. The town has partnered with Parker Water and Sanitation District, Castle Pines North Metro District and Stonegate Valley Metro District on the project, scheduled for completion in 2012. This is one of the biggest water supply reservoirs to be constructed, in Colorado and along the Front Range, in decades.

Residents can stop by to see exhibits and water experts, to answer questions about this and other water projects. Please note the tour will be cancelled in the event of rain.

The reservoir is at 9343 Newlin Gulch Road in Parker. For directions and a map, go to CRgov.com/rhtour.com.

Questions? Contact Carolyn Richards, crichards@CRgov.com or 720-733-6002.

More Rueter-Hess Reservoir coverage here and here.

Parker Water and Sanitation District board election recap



From the Parker Chronicle (Ashley Dieterle):

Two positions are now filled on the Parker Water and Sanitation District board of directors after an all mail-in ballot election. Current board president Mary Spencer earned the most votes, with a total of 1,327 followed by candidate Darcy Beard earning 1,166 votes. Both women earned four-year terms.

More Parker coverage here and here.

Parker: Rueter-Hess Reservoir ready to store water

From The Denver Post:

Parker Water & Sanitation District officials announced that construction of the Rueter-Hess Reservoir — which is 180 feet deep and spans 1,400 acres — has reached a stage where water can be received. State officials have approved a request to allow water in nearby Newlin Gulch to be stored in the reservoir.

More Rueter-Hess Reservoir coverage here and here.

CWCB: Is there a transmountain pipeline in Colorado’s future?

From The Pueblo Chieftain (Chris Woodka):

The state is pondering proposed pipelines to move water from most areas of the state to the Front Range in an attempt to meet future water demands. Not all will be built, and none has been officially endorsed…

Strategies in the report that move water from one basin to another include:

Flaming Gorge Pipeline: Proposed by Aaron Million, it would bring water from Flaming Gorge Reservoir in Wyoming to reservoirs near Fort Collins and Colorado Springs. Yampa Pumpback: A pipeline would look at bringing water from Maybell to the Brighton area.

Green Mountain Pumpback: Water from Green Mountain Reservoir would be pumped back to Dillon Reservoir and moved to the Denver area.

Big Straw: A pipeline would take water from the Colorado River at the state line near Grand Junction and bring it to the Front Range.

At the request of Front Range roundtables, another project, the Blue Mesa Pumpback in the Gunnison River basin, also is being studied…

There are also alignments of pipelines in both the Arkansas and South Platte basins that would bring water to the Front Range, possibly storing it in Rueter-Hess Reservoir, a 72,000 acre-foot reservoir constructed near Parker that currently lacks water to fill it.

Here’s some background on solving Colorado’s water supply problems, from Chris Woodka writing for The Pueblo Chieftain. From the article:

The newest project, proposed by entrepreneur Aaron Million, would build a pipeline from Flaming Gorge Reservoir that would go around Colorado’s Rockies rather than through them. Another, the Yampa River pumpback plan, was suggested by the Northern Colorado Water Conservancy District. Those still face the pressure of a skeptical audience. The concept behind each of the projects – building a large-volume project to bring more water across the Continental Divide – is under renewed study by the Colorado Water Conservation Board, but a long way from becoming reality. Taking water from the Rio Grande basin is for the moment off the table, but all of the Colorado River basins are part of the CWCB study. Other plans look at moving water from farmlands in the Arkansas and South Platte valleys to serve population growth…

For the next decade, the major cities began developing alternatives to the big projects of the past, leading to major changes in how water was developed. There was more talk of recycling, drying up more farmland and more long-range planning. There was more speculation by private developers to buy ag water rights from struggling farmers to hold until the cities were willing to pay. That happened during two very wet decades in the 1980s and ’90s.

When the drought of 2002 came, the state mobilized in new ways. The CWCB launched its Statewide Water Supply Initiative, which in 2004 identified more agricultural dry-ups as the easiest way to meet future urban demands. State voters turned down Referendum A in 2003 that would have created a $2 billion state fund to develop projects. When the top-down approach didn’t work, the state Legislature created the grass-roots Interbasin Compact Committee and basin roundtables to help tackle the gnawing question: Could another transmountain project be developed?[...]

The state studies of water projects looked at the relative feasibility of each and found that it could be expensive to develop more than one. Each project could bring about 250,000 acre-feet and would cost between $7.5 billion and $10 billion to build. “Projects have a better chance of success if they evaluate and mitigate impacts and produce benefits in both the basin of use and the basin of origin,” [Jennifer Gimbel, CWCB executive director] said.

Even if agreements are reached, more water would be needed. Conservative estimates of growth and water needs call for 830,000 acre-feet of new supplies in 50 years, when the state’s population is expected to double to 10 million people. Could the carrying capacity of existing diversions be increased? “The state hasn’t looked at this comprehensively,” Gimbel said. “However, most of the transmountain projects are being used to full capacity, depending on the demand pattern on the East Slope. In other words most projects use as much transmountain water as is physically and legally available.” The IBCC’s model for balancing water portfolios between strategies – conservation, more diversions, ag dry-ups – is a useful tool, but has not produced the answer so far. Groups looking at the problem focused on general proportions, not a specific project at the most recent meeting.

More CWCB coverage here.

Parker: Recall of Parker Water and Sanitation board fails

From The Denver Post (Bruce Finley):

A proposed water-rate hike last year prompted the campaign to oust four members as irresponsible. Board members backtracked, but campaigners pushed on. The results — board president Mary Spencer survived by 30 votes, Root by 7, Mike Casey by 58 — won’t be final until Dec. 30, Douglas County Clerk and Recorder Jack Arrowsmith said. At least one race requires a recount.

Parker’s 12-month tussle reflects rising tension over water in Front Range suburbs, where water managers are struggling to obtain and divert renewable water from mountain rivers as local groundwater supplies dwindle. “This is the kind of battle we’ll see played out with greater frequency as the demands on these finite water resources intensify,” said water expert David Getches, dean of the University of Colorado law school and former state director of natural resources. “We’ve allowed, in Colorado, whole subdivisions and whole communities to be built on nonrenewable water supplies.” Parker’s five-member board oversees the water supply for more than 22,000 people southeast of Denver who rely on 30 wells, from 51 to 2,745 feet deep, that draw fewer and fewer gallons per minute. State data show water tables falling 30 feet a year…

Frank Jaeger, the water-district manager, is leading a drive to divert upper Colorado River Basin water to Denver suburbs from western Wyoming. The $230 million Rueter-Hess reservoir under construction near Parker — one of Colorado’s biggest water- storage projects in decades — would hold that water, along with creek runoff and reused water treated at a new high-tech chemical plant. Jaeger’s district, established in 1962, is one of dozens created after developers built subdivisions across semi- arid terrain and left decisionmaking to the residents. Now, boards face difficult decisions as economic doldrums limit residents’ abilities to pay higher water rates…

“What we learned is, we weren’t doing a very good job of educating the public,” [accountant Darcy Beard] said. “The cost of water in Colorado is never going to go down. We live in a high-desert environment.”

More Parker coverage here.

Parker: Recall of Parker Water and Sanitation Board failing according to early results

From The Douglas County News Press (Ashley Dieterle):

Board president Mary Spencer had 1,976 votes to retain her in office, edging out the 1,946 votes to recall her by only 30. Mike Casey earned 1,983 votes to keep him in office versus the 1,925 votes to recall him. Sheppard Root had the narrowest lead Tuesday night with the 1,962 votes to retain his seat beating the recall tally of 1,955 by only seven votes. The one vacant position will be filled by Randall Huls wining 1,415 votes over Darcy Beard (1,217) and Tracy Hutchins (753).

More Parker coverage here.

Parker: Rueter-Hess Reservoir update

So far Parker and its partners in Rueter-Hess Reservoir — currently under construction southwest of the city — do not have enough surface water to fill the 77,000 acre-foot reservoir. Here’s a report from Bruce Finley writing for The Denver Post. From the article:

The prospect of what critics call an empty bathtub is generating anxiety around Colorado as water managers clash over the last unclaimed mountain river flows. Most water to fill the Rueter-Hess reservoir “will have to be imported,” said Frank Jaeger, manager of the Parker Water and Sanitation District, who for 25 years has led the effort to supply 450,000 suburban residents. Importing water would require multibillion-dollar pumping and piping from rivers running down the western side of the Continental Divide, such as the Colorado, back across mountains to Front Range residents, Jaeger said. Though huge, the costs likely would be less than for alternatives such as trapping and treating contaminated water from the South Platte or Arkansas rivers, he said. The option Jaeger and a Colorado-Wyoming coalition of municipal suppliers favor — one of four being considered by state natural resources officials — would divert water from the Flaming Gorge Reservoir in western Wyoming along Interstate 80 to Colorado…

Yet Colorado Western Slope leaders see the $230 million Rueter-Hess reservoir as folly — and bristle at talk of diverting more water across the mountains to fill it. The reservoir “is 20 times more expensive, and 10 times as big as they need. It’s going to be a little bit of water in a big bathtub,” said Eric Kuhn, manager of the Colorado River Water Conservation District, based in Glenwood Springs. The financing, based on tap fees from anticipated housing construction, “is the water equivalent of a Ponzi scheme,” Kuhn said…”There’s a very good chance that, in the long run, there’s not going to be any more water available on the Western Slope. And, if they’re having trouble now paying for Rueter-Hess, how are they going to pay for moving water from the Western Slope? That’s why I say this is a fairy tale,” Kuhn said…

This month, more construction vehicles are rolling into action to build up the 7,700-foot-wide Frank Jaeger Dam at the reservoir. Critics “can make their claims,” but the reservoir will be crucial to sustain population growth, Jaeger said. Paying off the debt for the construction now underway all depends on tax revenues from future growth, he said. “To say, ‘We’ll just shut off growth’ will only exacerbate problems,” he said. “If you don’t pay off debt, what do you do? What does that do to the economy of the whole state? We need steady, controlled growth. All our needs for a reasonable lifestyle are tied into this.”

More Rueter-Hess coverage here and here.

Parker: Searching for dough to complete Rueter-Hess

The collapse in real estate in Parker has had a negative impact on funds for Parker Water and Sanitation’s Rueter-Hess Reservoir. Here’s a report from Chris Michlewicz writing for the Parker Chronicle. From the article:

When the housing market began its long slide into the abyss in 2006, district officials immediately began to notice the impact. The number of tap fees collected went from 1,700 in 2005 to suddenly 600 the following year. Last year, just more than 300 taps were connected. This year, as of June 4, only 18 taps have been sold. “All of our planning was based on a worst-case scenario of 600 taps per year,” [Frank Jaeger Parker Water and Sanitation District’s longtime manager] said during an interview in late April. “This thing has escalated on us.”[...]

Unfortunately for the district — and for its customers, it turns out — the end came into sight much quicker than ever thought possible. Between 2005 and 2008, Parker water collected $65.9 million in taps fees. The money funded capital projects, built up reserve funds, and was also used to pay debt service on the $105 million in revenue bonds issued in 2004. (Money for the expansion was paid up front by Castle Rock, Castle Pines North and Stonegate, who entered into a partnership to buy water storage in Rueter-Hess, which is still under construction just southwest of Parker’s town boundary). Counting the 5.118 percent interest rate on the bonds, Parker water is responsible for paying $12 million per year on its debt. To date, according to its finance director, the Parker Water and Sanitation District has paid only $4.1 million of the loan principal. That means the outstanding principal for Rueter-Hess alone stands at $101.3 million. And there is little in the way of revenue coming in right now. Enter last December’s proposed rate and fee increase of 28 percent on the water district’s 12,900 customers…

Conversely, prospective residents have a new quandary to consider. They, along with the existing population, will be responsible for covering the remaining costs for Rueter-Hess Reservoir, plus another $80 million in outstanding district debt, unless development picks up soon. Those who eventually move into The Canyons, a massive planned residential development just north of Castle Rock that will also be served by the Parker water district, will pay the high cost of water and eat the tap fee expense that is passed on from the developer. “People moving into Parker who haven’t got their homes built right now are in for that same surprise,” Jaeger said. “There’s no getting away from the cost of developing water.” One study conducted by a district consultant showed that the Parker area will need roughly 31,000 acre-feet of water as an indefinite supply. Jaeger is still exploring options — some very promising — for obtaining water for the future. “I’m looking 100 years down the road,” he said. “This community is not going to go away, and it’s going to need a water supply.”

More Coyote Gulch coverage here and here.