The Longmont City Council reached a consensus Tuesday night — they would rather the city pay roughly $47 million in cash instead of using debt for a portion of the Windy Gap Firming Project.
Water rates are set to increase by 9 percent in 2017, 2018 and 2019, then 8 percent in 2020 and 2021, said Dale Rademacher, general manager of public works and natural resources.
Paying cash for Windy Gap is cheaper for the city in the long run, but staff estimates it will raise water rates by 21 percent in 2017 and then by another 22 percent in 2018, rather than the planned 9 percent. Debt financing would have cost almost $25 million more in the long term with a predicted 5 percent interest rate but resulted in more gradual rate increases between 5 and 14 percent in the short term…
City Manager Harold Dominguez said there are plans in the works to test utility rate discounts for low-income households. To qualify, a single Longmont resident would need to make less than $12,720 in a year or a married couple would need to earn less than $17,146 in a year, although those limits could have adjusted slightly since the test program was introduced.
The City Council also directed Rademacher to explore alternative financing so the entire burden of the $47 million doesn’t fall on ratepayers. There’s a Windy Gap surcharge on new water taps that sunsets at the end of 2017. Councilmembers said they’d rather the surcharge just stayed in place in order to generate funds for the Windy Gap project.
Additionally, a property owner can either transfer non-historical water rights to satisfy a raw water requirement or pay cash-in-lieu. Staff will study limiting it to cash payment only in order to pay for Windy Gap.
Meanwhile, here’s the view from Grand County (Lance Maggart):
The long awaited development of Northern Water’s Chimney Hollow Reservoir cleared one of the final two hurdles on the road to construction in late March when the Colorado Department of Public Health and Environment (CDPHE) released its 401 water quality certification for the project, generally referred to as the Windy Gap Firming Project (WGFP).
The issuance of the 401 water quality certification from the CDPHE was one of two final steps in the permitting process required for construction on the project to begin. The 401 certification from the state comes after 13 years of work. According to Northern Water’s Public Information Officer Brian Werner Northern Water began the formal permitting process for the development of Chimney Hollow Reservoir in 2003. Since beginning the formal permitting process Northern Water and other participants have spent roughly 15 million dollars on the projects permitting process.
Now that Northern Water has received their 401 certification from the state the municipal water provider is awaiting a 404 wetlands permit from the US Army Corp of Engineers, the final permitting step before construction can begin on Chimney Hollow.
404 WETLAND PERMITS
As a matter of practice 404 wetlands permits from the Corp of Engineers require issuances of state certifications, like the CDPHE 401 water quality certification, before the Corp of Engineers can complete their own permitting processes. “This is the next to the last step in getting the project permitted,” stated Project Manager Jeff Drager.
Officials at Northern Water said they expect the 404 wetlands permit is forthcoming and anticipate its issuance in the next few months. Werner was quick to point out that Governor John Hickenlooper has officially endorsed the project, a first in the history of the state according to a press release from Northern Water highlighting the endorsement.
“Northern Water and its many project partners have worked diligently, transparently and exhaustively in a collaborative public process that could stand as a model fro assessing, reviewing and developing a project of this nature,” stated Hickenlooper in a letter read at Northern Water’s Spring Water Users meeting in Loveland last week by the Governor’s Water Policy Advisor John Stulp.
Once Northern Water has secured the final permit for the project from the Corp of Engineers work on Chimney Hollow Reservoir can begin. Chimney Hollow is eventually expected to store 90,000 acre-feet of water and will be located just west of Carter Lake Reservoir in southern Larimer County. The development of the reservoir will mean additional water diversions out of Grand County. The total estimated price tag for the WGFP is around $400 million.
Despite environmental concerns produced by the additional diversions both Grand County and the conservation group Trout Unlimited have endorsed the project, following sustained negotiations between Northern Water and various stakeholders from the western slope regarding environmental mitigation and adaptive management plans for the Colorado and Fraser Rivers. A press release from Trout Unlimited praised the river protections that were reaffirmed with the state 401 certification.
“We strongly believe these permit conditions establish a strong health insurance policy for the Upper Colorado River,” stated Mely Whiting, counsel for Trout Unlimited. In their press release Trout Unlimited outlines conditions within the 401 certification the organization feels will address both fish habitat issues and water quality needs including: monitoring of stream temperatures, key nutrients and aquatic life, providing periodic “flushing flows” to cleanse the river during runoff and requiring ongoing monitoring and response if degraded conditions are detected.
The 401 certification and the environmental protections included with it were made possible in part from a more collaboratively minded interaction between west slope stakeholders such as Grand County and Trout Unlimited and east slope diverters Northern Water and Denver Water. “This long-term monitoring and flexibility of response is called ‘adaptive management’ and it’s a critical feature of the permit requirements,” stated Whiting. “Adaptive management recognizes that stakeholders can’t foresee every problem, and it provides a process for ongoing monitoring and mitigation of river problems as they arise.”
Grand County local Kirk Klancke is the president of the Colorado Headwaters Chapter of Trout Unlimited and has long championed the health of both the Fraser and Colorado Rivers. Klancke spoke positively about the adaptive management and collaborative spirit that has made negotiations for the WGFP possible. “We wouldn’t be at this point without the leadership of Grand County and their persistent efforts to improve the health of the Colorado River,” stated Klancke. “The Northern subdistrict also deserves credit for listening to our concerns and working with all stakeholders to find solutions.”
Here’s the release from Governor Hickenlooper’s office:
Gov. John Hickenlooper today formally endorsed the Windy Gap Firming Project, a water project that will serve cities and farmers on the northern Front Range as well as provide environmental benefits on the Western Slope.
The project expands the existing Windy Gap system built in the 1980s and includes the planned Chimney Hollow Reservoir southwest of Loveland to ensure more reliable supplies for the Northern Colorado Water Conservancy District and other project participants. It also includes several protective measures for fish and waterways on the Western Slope.
“Northern Water and its many project partners have worked diligently, transparently and exhaustively in a collaborative public process that could stand as a model for a project of this nature,” Hickenlooper said. “This is precisely the kind of cooperative effort envisioned for a project to earn a state endorsement in Colorado’s Water Plan.”
The Windy Gap Firming Project has been in the process of obtaining federal, state and local permits and certifications since 2003, including the required Fish and Wildlife Mitigation Plan approved by Colorado Parks and Wildlife, the Colorado Water Conservation Board and, most recently, the Section 401 Water Quality Certification from the Colorado Department of Public Health and Environment.
“Colorado moves the needle today with endorsement of a project that makes gains for the environment and water supply together,” said James Eklund, director of the Colorado Water Conservation Board, the agency that facilitated development of Colorado’s Water Plan. “Grand County, environmental stakeholders, and Northern Water set an excellent example of the collaboration necessary to achieve the bold measurable objectives of Colorado’s Water Plan and the Colorado and South Platte Basin Implementation Plans.”
“Northern Water worked closely with state biologists to ensure that impacts on streams and rivers – and the fish and wildlife that depend on them – were identified and addressed through mitigation for the benefit of the environment, wildlife and recreation,” said Bob Broscheid, director of Colorado Parks and Wildlife. “This was a thorough and unified process and shows what we can accomplish when we work together to reach shared goals.”
With necessary permits and certifications for the project in hand, Hickenlooper also today directed his staff to work with the U.S. Army Corps of Engineers in the federal agency’s issuance of a Section 404 Permit, the final federal regulatory step for the project.
Here’s the release from the Northern Colorado Water Conservancy District (Brian Werner):
Chimney Hollow Reservoir close to reality
Today the State of Colorado officially endorsed the Windy Gap Firming Project and Chimney Hollow Reservoir.
John Stulp, Governor John Hickenlooper’s Water Policy Advisor, made the announcement at Northern Water’s Spring Water Users meeting in Loveland. Reading a letter signed by Gov. Hickenlooper, Stulp told the 200 attendees that this is the state of Colorado’s first endorsement of a water project under the Colorado Water Plan, which was finalized last November.
“Further, the WGFP aligns with the key elements of the Colorado Water Plan…” Hickenlooper wrote.
Hickenlooper continued, “Northern Water and its many project partners have worked diligently, transparently and exhaustively in a collaborative public process that could stand as a model for assessing, reviewing and developing a project of this nature.”
Northern Water’s Municipal Subdistrict President Dennis Yanchunas spoke for the project’s participants in saying, “It’s really exciting to have that endorsement, the first ever by the state.” [ed. emphasis mine] Colorado’s endorsement came on the heels of state water quality certification in late March.
The Colorado Department of Public Health and Environment issued its 401 water quality certification for the Windy Gap Firming Project on March 25, bringing the project permitting process nearer to completion.
“This is the next to the last step in getting the project permitted,” said Project Manager Jeff Drager.
“The final step is the federal 404 wetlands permit from the U.S. Army Corps of Engineers, which we believe will be forthcoming in the next few months.”
The state’s endorsement of the WGFP culminates 13 years of diligent effort and lengthy negotiations to permit and authorize a project that will assure a reliable water supply for more than 500,000 northern Front Range residents.
The federal permitting process began in 2003 under the National Environmental Policy Act. The U.S. Bureau of Reclamation served as the lead federal agency and issued a final Environmental Impact Statement in 2011 and a Record of Decision in 2014 for Chimney Hollow Reservoir.
In addition, the Colorado Parks and Wildlife Commission and Colorado Water Conservation Board approved a fish and wildlife mitigation plan in 2011. The following year the Grand County Commissioners issued a 1041 permit and reached an agreement with Northern Water’s Municipal Subdistrict on a mitigation and enhancement package.
A wide variety of organizations, including Trout Unlimited, support the CDPHE’s long-awaited ruling.
“This permit is another step toward fulfilling the Windy Gap Firming Project’s potential to be part of a balanced water supply strategy for Colorado Front Range,” said Drew Peternell, director of TU’s Colorado Water and Habitat Project.
“Through a balanced portfolio – including responsible supply projects like WGFP – along with stronger conservation and reuse programs and ag-urban water sharing — Colorado can meet its diverse water needs…” Peternell added.
The Windy Gap Firming Project is a collaboration of 12 Northern Front Range water providers and the Platte River Power Authority to improve the reliability of their Windy Gap water supplies. Windy Gap began delivering water in 1985.
The participants include 10 municipalities: Broomfield, Erie, Evans, Fort Lupton, Greeley, Lafayette, Longmont, Louisville, Loveland and Superior; two water districts: Central Weld County and Little Thompson; and one power provider: Platte River. They currently provide water to 500,000 people.
The current cost estimate for WGFP is $400 million. To date the participants have spent $15 million on associated permitting costs.
The Windy Gap Firming Project is one step closer to being more than just big dreams and big dollar signs. The project, which would allow for the construction of the Chimney Hollow Reservoir southwest of Loveland, received the first endorsement a water project has ever gotten from the state of Colorado.
John Stulp, special policy adviser for water to Gov. John Hickenlooper, read a letter from the governor at the Northern Water Spring Water Users meeting Wednesday at the Ranch in Loveland. In the letter, Hickenlooper applauded Northern Water for the Windy Gap Firming Project’s ability to bring communities together, protect fish and wildlife, and make Colorado’s water more sustainable, along with other ideals outlined in the Colorado Water Plan, which was adopted last November.
“Northern Water and its many project partners have worked diligently, transparently and exhaustively in a collaborative public process that could stand as a model for a project of this nature,” Hickenlooper said in a news release from his office. “This is precisely the kind of cooperative effort envisioned for a project to earn a state endorsement in Colorado’s Water Plan.”
While the endorsement from the state doesn’t advance the plan in earnest, it does give it credibility in the next and final step to getting its building permit completed.
“This is the next to the last step in getting the project permitted,” said Windy Gap Firming Project manager Jeff Drager in a release from Northern Water. “The final step is the federal 404 wetlands permit from the U.S. Army Corps of Engineers, which we believe will be forthcoming in the next few months.”
When the U.S. Army Corps of Engineers considers the project for the permit, it will want to know if the state approves of it. Now, with an official recommendation from the governor, the path should be smoother for the Windy Gap Firming Project and the Chimney Hollow Reservoir, Stulp said.
“I think this (project) is being done right,” Stulp said. “Now, we have the state’s endorsement and I think that will inform the fed agencies, the Corps at this point, that this has got strong support in Colorado.”
The city of Greeley was one of the original six cities to invest in the existing Windy Gap Reservoir. Now, the city is a participant in the Windy Gap Firming Project. Once the Chimney Hollow reservoir is built, Greeley will receive 4,400 acre-feet of water per year. An acre-foot of water is roughly the equivalent of one football field filled with a foot of water — that’s almost 326,000 gallons of water, or more than 8,000 bathtubs full.
Evans, Fort Lupton and the Central Weld County Water District are also participants in the Windy Gap Firming Project.
The project is estimated to cost about $400 million and participants have thus far spent $15 million, according to the Northern Water release. The reservoir will store 90,000 acre-feet of water and will be located near Carter Lake and parts of Northern Water’s Colorado-Big Thompson Project.
The Windy Gap Firming Project’s participants are primarily municipalities, but also include two water districts and one power company. The purpose of the project is to create an alternative water source for cities and companies to purchase water from instead of resorting to tactics like buy-and-dry or competing with agricultural land for water resources.
During his presentation at the Northern Water Spring Water Users Meeting, Metropolitan State University of Denver professor Tom Cech talked population growth. He said right now, Colorado is home to more than 5 million people. By 2030, that number’s projected to rise to more than 7 million after having already grown about 30 percent since 1990. In the South Platte Basin alone, that kind of population growth will equal a shortage of about 410,000 acre-feet of water, or about 134 billion gallons. Between 133,000 and 226,000 acres of irrigated land in the South Platte River Basin are expected to dry up by 2030.
With the rapid population expansion and resulting urban sprawl happening in Colorado, projects like these are more important than ever, said Eric Wilkinson, Northern Water’s general manager.
“People need water and we’re going to grow. Obviously people like this area, people move to this area and people will continue to come and we have to find ways to provide that water supply,” Wilkinson said. “This is a good way of doing it.”
Gov. John Hickenlooper on Wednesday weighed in formally backing the long-delayed and controversial $400 million Windy Gap project to divert more water from the Colorado River to the booming Front Range.
Hickenlooper ordered state officials to work with the U.S. Army Corps of Engineers to obtain a final federal wetlands permit needed for work to begin. His endorsement is expected to aid that effort.
Northern Water would expand its existing river diversion system built in 1985 by installing a new reservoir southwest of Loveland to hold diverted Colorado River water. That 29 billion-gallon Chimney Hollow Reservoir would supply farmers and growing cities.
“This is the first time he has endorsed this project. We were certainly hoping for it. We were pleasantly surprised,” Northern Water spokesman Brian Werner said.
“This means that construction, starting in 2019, is a reality.”
Northern Water has been planning the project, working with state and federal officials on permits, since 2003. A mitigation plan, approved by Colorado Parks and Wildlife and the Colorado Water Conservation Board, lays out measures to protect fish and off-set environmental harm including altered river flows.
Colorado Department of Public Health and Environment officials, responsible for ensuring water quality, signed off on March 25.
“Northern Water and its many project partners have worked diligently, transparently and exhaustively in a collaborative public process that could stand as a model for a project of this nature,” Hickenlooper said. “This is precisely the kind of cooperative effort envisioned for a project to earn a state endorsement in Colorado’s Water Plan.”
Front Range users would would siphon additional west-flowing water — up to 8.4 billion gallons a year — out of the Colorado River and pump it back eastward under the Continental Divide. That water, stored in the new reservoir, is expected to meet needs of 500,000 residents around Broomfield, Longmont, Loveland and Greeley.
Environment groups on Wednesday reacted with fury.
“This project will further drain and destroy the Colorado River and imperil endangered fish,” said Gary Wockner, director of Save the Colorado River. “We’ve registered 23 complaints with the Army Corps of Engineers. The federal government should deny the permit. This project is reckless.”
Colorado officials endorsed a long-sought water storage project that would include construction of Chimney Hollow Reservoir southwest of Loveland.
Gov. John Hickenlooper on Wednesday voiced his support for the Windy Gap Firming Project, which would divert water from the Western Slope to the Front Range to shore up supplies for municipalities and farmers…
Participants in the water-storage project include Loveland, Longmont, Greeley, Broomfield, Platte River Power Authority and two water districts.
The project recently received a key water quality certification from the Colorado Department of Public Health and Environment. The certification is needed to receive a final permit from the U.S. Army Corps of Engineers to build the project…
If the expected permits come through, final design on Chimney Hollow Reservoir would begin later this year with construction beginning in 2018-19, Werner said.
Chimney Hollow Reservoir would hold up to 90,000 acre feet of water. An acre foot is enough water to meet the annual needs of three to four urban households.
Larimer County would build and operate recreational facilities at the reservoir, which would be built west of Carter Lake. Carter Lake holds up to 112,000 acre feet of water.
The Windy Gap Firming Project has been under federal, state and local review since 2003. It has been challenged by environmentalists over the years because of its impact on the Colorado River’s ecosystem through increased water diversions.
In a recent email to the Coloradoan, the group Save the Colorado stated it would scrutinize the 404 permit decision from the Corps to ensure the project adheres to the National Environmental Policy Act, the Clean Water Act and the Endangered Species Act.
Supporters say the Windy Gap Firming includes measures that would mitigate its environmental impacts and protect fish, streams and water quality in Grand Lake and the Colorado River.
The project — formally called the Windy Gap Firming Project — calls for the construction of a new reservoir, called Chimney Hollow Reservoir southwest of Loveland. The reservoir will be designed to hold up to 90,000 acre feet of water, and reliably deliver about 30,000 acre feet of water every year, enough to support the needs of 60,000 families of four people.
It’s an expansion of the existing Windy Gap system built in the 1980s to divert water from the Colorado River to the Front Range. But the construction of a new reservoir is crucial, said Brian Werner, a spokesman for the Northern Colorado Water Conservancy District, the lead agency on the project.
Because of the Windy Gap project’s relatively junior water rights, water cannot be diverted in years when the snow pack is low. And during wet years, there’s not enough storage space in Lake Granby to store the Windy Gap water, which means it runs down the river.
“Windy Gap right now doesn’t have any firm yield,” Werner said, meaning that the system can’t be counted on to have water available for customers every single year.
“In wet years there’s no where to put it [the water], and in dry years there’s nothing to pump,” Werner said.
About 500,000 people live in the water districts that would be served by the Windy Gap Firming Project, including Broomfield, Lafayette, Louisville, Loveland, Erie and Evans. To date, the cost of planning and permitting the project has risen to $15 million, according to the Northern Colorado Water Conservancy District.
And with population numbers expected to jump in coming years, this project and others will be needed to ensure there’s enough water for the communities to grow, Werner said.
The project’s leaders have worked on agreements to mitigate environmental impacts to protect fish, ensure stream protection and reduce water quality impacts to Grand Lake and the Colorado River.
Last month, the Colorado Department of Public Health and Environment this week released its final “401 water quality certification,” meaning that the state had signed off on the plans to mitigate the environmental impact of the project on the Upper Colorado River.
Trout Unlimited, said the conditions imposed by the state health department put the “threatened river and fishery on road to recovery.
“We firmly believe these permit conditions establish a strong health insurance policy for the Upper Colorado River,” said Mely Whiting, counsel for Trout Unlimited, in a statement.
It took a long time to get here. Click here to take a trip back in time through the Coyote Gulch “Windy Gap” category. Click here for posts from the older Coyote Gulch blog.
Moffat Collection System Project/Windy Gap Firming Project via the Boulder Daily Camera
Windy Gap and C-BT Granby area facilities
Windy Gap Reservoir
Windy Gap Reservoir
Site of proposed Chimney Hollow Reservoir — Windy Gap Firming Project via the Longmont Times-Call
Chimney Hollow Reservoir site
Chimney Hollow Reservoir site via the Bureau of Reclamation
Debate continues to swirl around water clarity standards for Grand Lake, but recently stake holders on the Western Slope presented a new proposal in hopes of moving negotiations forward.
Western Slope stakeholders recently presented a revised clarity standard proposal to the Water Clarity Stakeholders group for consideration. The revised clarity standard proposal presented by the Western Slope stakeholders is for 3.8 meters, or 12.5 feet, with a 2.5 meter, or 8.2 feet, minimum clarity depth. This is a reduction from their previous proposal of a 4-meter standard.
Representatives from the Western slope stakeholders together with others from the east side of the continental Divide make up the Water Clarity Stakeholders Committee (WCSC). The WCSC is formed from the various entities affected by water clarity in Grand Lake and the operation of the Colorado-Big Thompson Project (C-BT), which pulls water from the Three Lakes region that is sent through the Alva B. Adams Tunnel out of Grand Lake to the Front Range.
The WCSC includes representatives from the U.S. Forest Service, Town of Grand Lake, Western Area Power Administration, Grand County, Northern Water, the U.S. Bureau of Reclamation, power consumers from the affected area, the U.S. Environmental Protection Administration, the Colorado River Water Conservation District, the Three Lakes Watershed Association, Northwest COG, Colorado Parks and Wildlife, Trout Unlimited, Middle Park Water Conservancy District, U.S. Geological Survey, the Grand County Water Information Network, and various other groups.
Representatives from the WCSC hope to negotiate a single water clarity proposal amongst themselves that can be presented to the Colorado Water Quality Control Commission, the entity that will give final approval of any new water clarity standard. The Commission is part of the Colorado Department of Public Health and Environment. The WCSC is working toward a deadline; their proposal is due in November.
WEST SLOPE COMPROMISE
Grand County Manager Lurline Underbrink-Curran has helped shepherd the process for the county.
“The West Slope group came up with compromises we felt we could live with and presented them to the larger group,” she said.
Underbrink-Curran explained that if the various groups cannot come to agreement on a proposal then multiple proposals will likely be submitted to the Water Quality Commission.
“Sometimes the various factors to consider are at odds,” she said. “If the Stakeholders group can’t come to a coordinated proposal then the West Slope group would make a proposal and the East Slope group would likely make their own proposal.”
The debate has been ongoing for several years now and started in earnest in 2008 when a committee was formed to study possible methods for improving water clarity in Grand Lake. According to Canton O’Donnell, president of the Three Lakes Watershed Association, that committee, which later became the Water Clarity Stakeholders Committee, was formed from the sustained lobbying efforts of the Three Lakes Watershed Association to improve the water clarity standard.
“All these years we have proposed a 4-meter standard,” said Canton. “Northern Water says that is not possible.”
The Northern Colorado Water Conservancy District, better known as Northern Water, operates the C-BT though the facilities are officially owned by the federal Bureau of Reclamation.
“We don’t think that is an attainable standard,” said Brian Werner, Public Information Officer for Northern Water. “Looking at history and what we have been able to achieve in the past; we’ve been able to achieve 4 meters some years at certain times of the year. But oftentimes the clarity gets worse than that.”
Werner also expressed concerns over how such a standard would be enforced and how penalties for failing to meet any new standard would be applied.
In 2008, those concerned for Grand Lake established a site-specific water clarity standard through the Colorado Water Quality Control Commission. This visionary application of a water quality standard to lake clarity, which was intended to restore the scenic attraction of Grand Lake, is unprecedented in Colorado.
Now, negotiations are ramping up to modify specifics of the standard. Western Slope stakeholders recently made broad concessions on a possible joint standard proposal with the Northern Colorado Water Conservancy District, which distributes C-BT water to Northern Front Range consumers. The concessions are intended to be motivating yet practical for all stakeholders
The Western Slope stakeholders’ proposal — a target of 12.5 feet average clarity, with a 8.2 foot minimum — is still a far cry from the 30.2 feet of clarity measured prior to implementation of the C-BT. Yet this proposed clarity standard is an effort to recognize the water-delivery mandate of the Colorado-Big Thompson system while protecting lake health and allowing time for the U.S. Bureau of Reclamation to evaluate a more robust permanent solution.
The Western Slope stakeholders — made up of Grand County government, the Three Lakes Watershed Association, the town of Grand Lake, Northwest Colorado Council of Governments, and the Colorado River District — proposed this modified standard to be applicable for all of July, August and 11 days in September at the height of the region’s tourist season.
It is the hope of Eastern and Western Slope stakeholders to arrive at an agreement prior to the start of Colorado Water Quality Control Commission submittals beginning in November, for the sake of this valued resource.
From the Fort Collins Coloradoan (Ryan Maye Handy):
Horsetooth Reservoir gets its water from a network of Western Slope reservoirs fed by mountain snowmelt. Water is usually pumped up from Lake Granby to Shadow Mountain Reservoir, where gravity eventually pulls it down through the 13-mile Adams Tunnel and into a couple of more reservoirs before it reaches Horsetooth.
Back in 1951, hundreds of people came to the reservoir to mark the event — it was a long-awaited milestone for farmers and cities along the Front Range, who had survived decades of drought.
The shuttling of Western Slope water into Horsetooth and the Poudre River is a system that Northern Colorado has been reliant on for decades. In Northern Colorado, the plea for more water started in the Great Depression, when a devastating drought plagued the western and central United States.
The federal government agreed to come to the aid of Colorado’s farmers and in the late 1930s began building the Colorado-Big Thompson project. Today, the C-BT project supplies Fort Collins with 65 percent of its water.
I was 4 months and 16 days old at time. I don’t remember the event. More Colorado-Big Thompson Project coverage here.
Meanwhile, Northern is looking at big rate increases to coverage operations. Here’s a report from Steve Lynn writing for the Northern Colorado Business Report. Here’s an excerpt:
Under current projections, rates for Colorado-Big Thompson Project water could rise from $28 to more than $100 per unit for municipal users and from $10 to $80 per unit for agricultural users by 2023, according to documents from the Northern Colorado Water Conservancy District…
The extra money is needed because Northern Water’s expenses have outpaced its revenue in three of the last four years. Property taxes, which have remained flat since the recession, make up more than half of Northern Water’s revenue, while water-rate revenue accounts for about 20 percent of its funding.
The agency has coped, up until now, by drawing from cash reserves to fund its operations. Reserve funds are partly intended to help stabilize revenue but are not a sustainable funding approach in the long term, according to Northern Water.
The agency’s board is expected to decide on short-term rate hikes through 2018 this month. These potential hikes to $52.70 for municipal users and $32.20 for irrigation users would represent the largest dollar increase in Northern Water’s history, although the district has seen similar, double-digit percentage increases in the past.
“In the early 1980s, there were several years with double-digit increases, similar to what we are looking at now,” Northern Water spokesman Brian Werner said.
The rate hikes are essential to maintain infrastructure, according to Northern Water, and experts believe they will lead to additional water conservation. But the higher prices will put pressure on farmers…
Northern’s customers receive water under two types of contracts: fixed and open rate. The new rate hikes apply to those customers who buy open-rate water. In June, Northern Water board members raised the open-rate assessment 9 percent for next year. The 2015 rate for cities will increase to $30.50 per unit while the agricultural rate will rise to $10.90 per unit. Fixed-rate assessments based on decades-old contracts will remain $1.50 per acre foot.
Roughly two-thirds of Northern’s water is delivered via open-rate contracts, while one-third is governed by fixed-rate agreements…
Northern Water isn’t the only water district that has had to raise water rates. The Greeley-based Central Colorado Water Conservancy District, which supplies water to areas of Weld, Adams and Morgan counties, also has passed rate-assessment increases in recent years and plans to meet this month to consider additional rate hikes.
“Our organization is looking at future (operations and maintenance costs) and how do we keep our finances up,” Central Water Executive Director Randy Ray said. “You’ve got regular operations costs like labor, electricity and gasoline for vehicles. Then you also have deferred maintenance.”
The rate increases come as the nation faces challenges from deteriorating water infrastructure, which will cost more than $1 trillion over the next 25 years to fix in order to maintain current water service levels, according to a report from the American Society of Civil Engineers. Customers will pick up the tab mostly through higher water bills.
Similarly, users of Colorado-Big Thompson Project water will pay higher water bills as a result of the increased rate assessments. Increased revenue from the assessments will help fund Northern Water’s operations and maintenance budget, which accounts for almost half of the water district’s expenses. Northern Water says it needs to make major upgrades to water delivery infrastructure, much of which was built more than 60 years ago.
Tom Cech, director of One World One Water Center at Metropolitan State University of Denver, said higher expenses and a rising population have pressured water supplies, leading to elevated costs. He noted, however, that investments in water infrastructure are critical to maintaining water delivery systems.
“Look at all the investments that water providers did 100 years ago in our water system: new reservoirs, delivery systems and so forth,” he said. “That’s just the process of keeping up with the costs and population growth.”
The Northern Board did pass an increase. Here’s a report from Steve Lynn writing for the Norther Colorado Business Report. Here’s an excerpt:
The board of directors for Colorado’s largest water wholesaler Friday passed a historic water-rate hike in terms of dollars, representing a 202 percent increase for agricultural users and 90 percent for municipal users from 2014 through 2018.
Customers of the Northern Colorado Water Conservancy District receive water units under two types of contracts: open rate and fixed. By 2018, the open-rate assessment for a unit of water from the Colorado-Big Thompson Project will cost $30.20 for agricultural users, up from $10 this year, and $53.10, up from $28, for municipal users.
Fixed-rate assessments based on decades-old contracts will remain $1.50 per acre foot.
Board members unanimously approved a steep rate hike for the open-rate assessments, though Colorado-Big Thompson Project water users had requested a smoother transition of increases over time. The rate hike through 2018 represented the largest dollar increase in the public water district’s 77-year history, though the water district’s board members has passed similar percentage increases in the past.
The steeper rate hikes will help Northern Water more quickly achieve a balanced budget, said Jerry Gibbens, project manager and water resources engineer for Northern Water. The water district’s expenses have outpaced its revenue in three of the last four years, but Northern Water expects to reach a balanced budget by fiscal 2017 through the rate hikes.
Based on decades-old contracts, the fixed-rate assessments remained the same, a point of contention among some water users who pay the higher open-rate assessments and contend that Northern Water should raise the fixed-rate assessments.
Northern Water’s board agreed to look into how it could adjust the fixed rates in the future, but the agency has indicated that it may not be able to do so because they are set “contractually in-perpetuity.”
In June, the board decided to raise 2015 open-rate assessments to $30.50 per unit while the agricultural rate will rise to $10.90 per unit.
Under current projections, rates for Colorado-Big Thompson Project water could increase to more than $100 per unit for municipal users and to $80 per unit for agricultural users by 2023, according to Northern Water documents.
Board members did not decide on increases after 2018, but they plan to set rates annually as well as make projections of rate adjustments two fiscal years in advance.
More Northern Colorado Water Conservancy District coverage here.
Here’s a guest column written by Jim Pokrandt that is running in the Sky-Hi Daily News:
The Windy Gap Firming Project (WGFP) intergovernmental agreement (IGA) is in final form but has not been totally wrapped up because two important preconditions have not been completed, General Counsel Peter Fleming reported to the Colorado River District Board of Directors at its October meeting.
Like the Colorado River Cooperative Agreement between Denver Water and the West Slope, the Windy Gap Firming Project IGA is a package of mitigation enhancements that would be part of the Windy Gap Firming Project once it is permitted for the Municipal Subdistrict of Northern Water by the U.S. Bureau of Reclamation.
The preconditions for the River District’s execution of the agreement are that the United States (1) makes a satisfactory finding that the WGFP can be operated consistent with Senate Document 80 — meaning no impact to the United States’ obligations to the beneficiaries, including West Slope beneficiaries, of the Colorado Big Thompson (C‐BT) Project, and (2) adopts an enforceable provision recognizing that if the River District does not challenge the WGFP permitting decision, that it does not waive any legal rights regarding federal decisions involving the same or similar legal issues.
Fleming anticipated that that these conditions will be satisfied in the context of Reclamation’s final record of decision on the WGFP, which is expected in the first part of 2014. In the meantime, Fleming said the River District has worked extensively with Grand County on matters related to the WGFP and the operation of the C-BT Project — including the Grand Lake Water Clarity Agreement and the upcoming initiation of the WGFP Carriage Contract negotiations.
With respect to the Grand Lake clarity issues, Fleming reported there have been several meetings with Reclamation and Northern to help ensure that a workable solution can be reached to meet the Grand Lake water quality standard. An important goal in that regard has been to avoid a stalemate over a massively expensive “fix” that could require a separate congressional authorization and appropriation.
With regard to the WGFP carriage contract negotiations, the River District has assisted Grand County in efforts to secure the best possible negotiating position in Reclamation’s negotiation process.
Fleming said the River District believes Grand County’s specifically identified role in Senate Document 80 entitles the county (and its advisers) to a more involved position in the negotiations than Reclamation’s standard “sit and‐observe” role for members of the public in its contract negotiation process.
Another goal is to ensure that the Windy Gap water that Grand County is entitled to use pursuant to the IGA can be stored in Granby Reservoir for no charge or at a very affordable rate.