MWH gets $11.9 million contract to design Chimney Hollow Reservoir

Map from Northern Water via the Fort Collins Coloradan.
Map from Northern Water via the Fort Collins Coloradan.

From BizWest (Doug Storum):

Engineering and consulting firm MWH Global Inc. in Broomfield, a division of Canada-based Stantec Inc., has received an $11.9 million contract to design the Chimney Hollow Reservoir dam that will be located between Loveland and Longmont.

The Municipal Subdistrict of the Northern Colorado Water Conservancy District hired MWH to design a 360-foot-tall dam, spillway and outlet works for the 90,000-acre-foot reservoir near Loveland.

Officials said on Tuesday that the Chimney Hollow Reservoir dam, located on the west side of Carter Lake, will be the largest dam built in Colorado in 50 years. It will provide water storage for growing communities in Northern Colorado, including Broomfield, Longmont, Loveland and Greeley. The subdistrict estimates that its communities could see a water-supply shortage of 64,000 acre feet, or approximately 29 billion gallons, by 2030.

The design for the Chimney Hollow Reservoir Project is expected to be completed in 2018, with construction completed in 2021. The engineering services provided by MWH will include evaluating alternatives, final design and support during bidding.

Longmont councillors want rate payers to weigh in on paying for Windy Gap supply

Map from Northern Water via the Fort Collins Coloradan.
Map from Northern Water via the Fort Collins Coloradan.

From the Longmont Times-Call (Karen Antonucci):

The Longmont City Council has opted to participate in the Windy Gap Firming Project, which would construct a reservoir in order to hold some of the water produced by Longmont’s water rights.

There are three options to finance Longmont’s projected $47 million portion of the Windy Gap Firming Project — one using all cash and two using variations of debt.

If the council chooses to pay the $47 million in cash, it would mean initial water rate increases of 13 percent in 2017 and 12 percent in 2018, above the 9 percent increase in both of those years that has already been approved, for totals of 22 percent and 21 percent.

Or, the council could choose to use $41 million cash and $6 million in debt. This would mean initial rate increases of 8 percent in both 2017 and 2018 above the already approved 9 percent increase in those years. With this option, the city would spend $50.1 million total, including interest, on the project.

Finally, the council could choose to finance the project with $30.3 million in cash and $16.7 million of debt, it would mean initiative water rate increases of 5 percent in both 2018 and 2019 above the 9 percent increase in both those years. This option would ultimately cost the city $55.8 million.

For the cash option and the $6 million debt option, the rate increases over 10 years would be similar. The $16.7 million debt option would result in the highest total rate increase over a decade.

Longmont spokeswoman Holly Milne said that the council asked for the survey and the online comment form because they wanted resident feedback before they make a decision.

Residents can visit http://longmontcolorado.gov/departments/departments-n-z/water/water-resources-supply/windy-gap-firming-project and fill out an online form with their opinion of what the city should do.

The city is also surveying 3,000 randomly selected Longmont households with a postcard survey. The households chosen will be different than the households that will receive the city’s separate customer satisfaction survey.

Longmont council to ask public for Windy Gap feedback — Longmont Times-Call

Map from Northern Water via the Fort Collins Coloradan.
Map from Northern Water via the Fort Collins Coloradan.

From the Longmont Times-Call (Karen Antonucci):

Faced with three different financing mechanisms for Longmont’s $47 million portion of the Windy Gap Firming Project, the council chose to gather more information from the public first.

Longmont public works and natural resources staff told the council on Tuesday that they have three options to finance the $47 million — completely through rate increases, through rate increases and by issuing $6 million in debt or by issuing $16.7 million in debt.

The decision directly affects Longmont residents’ wallets. Essentially, paying cash up front with rate increases means steep rate jumps in the next two years but is cheaper in the long term.

If the council chooses eventually to finance it completely through cash, water rates will need to jump 21 percent in 2017 and 22 percent in 2018, including 9 percent increases already approved.

Debt, on the other hand, would cause milder rate increases for more years, and cost the city more long term.

On the other end of the extreme, council could choose to ask the voters to issue $16.7 million in debt for the project, which would mean delaying adding an additional increase to rates until 2018. In 2018, they would need to be raised 14 percent and another 14 percent in 2019, then between 5 and 7 percent each in years between 2020 through 2026.

With a projected 4.25 interest rate, a $16.7 million bond would cost an additional $8.4 million in interest, for a total of $25.1 million over 20 years.

In the middle of the two extremes is an option of a mix of cash and debt. The City Council could vote to issue up to $6 million in debt to finance Windy Gap without a vote of the general public. This would cause water rates to jump 17 percent each in 2017 and 2018, by zero percent in 2019 and between 4 and 7 percent each in years between 2020 to 2027.

Dale Rademacher, general manager of public works and natural resources, told the council that staff has timed it out so that the city wouldn’t lose any of the options by commissioning a survey of residents on the Windy Gap financing issue…

The council opted to commission a statistically valid survey be sent to 3,000 randomly chosen Longmont households explaining the three options.

Longmont councillors weighing cash v. debt for Windy Gap participation

Map from Northern Water via the Fort Collins Coloradan.
Map from Northern Water via the Fort Collins Coloradan.

From the Longmont Times-Call (Karen Antonacci):

The Longmont City Council on Tuesday will make several high-level decisions on how to finance the Windy Gap Firming Project.

In March, the council opted for the costlier 10,000 acre-foot level of the $387.36 million project, which would bring the pricetag for Longmont up to about $47 million. In April, the council directed they would prefer to pay with cash rather than debt for the $47 million, which would save money in the long-term but mean steep rate hikes in the short-term.

Now, staff has come back with a third option — a mix of cash and debt financing.

The council has already approved and codified raises to rates of 9 percent in both 2017 and 2018. If the council chose to finance the complete $47 million through rate increases, rates would need to rise 21 percent in 2017 and 22 percent in 2018, staff wrote to council in a memo.

But, raising rates is a little unpredictable for staff, because people might use less water in order to save money. While that helps with the city’s water conservation goals, it could make financing a huge project like Windy Gap tough.

“What we do know is that if we have a rate increase, it dampens consumption because people do react to an increased cost. What we’ve seen over time is that initial reaction tends to go away over time,” said Dale Rademacher, general manager of Longmont public resources and natural works…

By contrast, if Longmont chose to finance the $47 million project with $16.7 million in bonds, rates would not increase beyond the planned 9 percent in 2017 and then by 14 percent in 2018 and another 14 percent in 2019. The downside to debt is that it costs more in the long-term.

At a projected 4.25 percent interest rate, bonding out $16.7 million would cost the city $55.75 million over 20 years.

In the middle, staff has proposed bonding out only $6 million of the cost and financing the rest through rate increases.

This option would mean rate increases of 17 percent each in 2017 and 2018, between the two extremes of 21 percent with all cash and 9 percent with the higher debt option.

Rademacher said council could choose to bond out $6 million of the cost without a vote of the public…

Council on Tuesday needs to decide which financing option they want, and by extension, how much rates should raise in 2017.

Rademacher said all the rate raises are projected to happen by January 1, 2017 and if a major bonding issue needed to go to the ballot, staff are projecting to put it in front of voters in November, 2017.

Council could also decide to wait on the financing decision and get more public feedback on the issue. While there were questions related to Windy Gap on the regular Longmont resident survey, staff decided to remove those questions and ask council about a more specific survey.

National Research Center submitted a bid in order to survey Longmont residents about whether they would prefer to pay cash or debt for Windy Gap. To do an online-only survey would cost $3,440. To mail out a survey to randomly selected households would cost between $5,130 and $11,850 depending if NRC targeted 800, 1,500 or 3,000 households.

Loveland: City Council to consider buying more water Windy Gap storage, Tuesday, August 2

Map from Northern Water via the Fort Collins Coloradan.
Map from Northern Water via the Fort Collins Coloradan.

From the Loveland Reporter-Herald (Saja Hindi):

City of Loveland staff members will ask for approval from the Loveland City Council Tuesday to buy up to an additional 3,000 acre-feet of storage space in the Windy Gap Firming Project.

The meeting will take place at 6 p.m. in the municipal building at 500 E. Third St…

The city of Loveland already has 7,000 acre-feet of storage committed in the project and has an immediate opportunity to buy 2,000 more, each 1,000 requiring an immediate payment of $159,851 to Northern Water, according to a council memo.

City staff members are bringing a resolution to council members to ask that they be allowed to purchase up to 3,000 acre-feet because council members previously expressed interest in bumping the city’s storage to 10,000 acre-feet, the memo stated.

“Modeling indicates that this storage acquisition would increase the City’s overall firm yield value, available during drought conditions, by 500 acre-feet,” the memo stated.

The city’s estimated costs for the 7,000 acre-feet is $32,866,434, $2,084,608 of which has already been paid, according to the memo. Adding the 2,000 acre-feet would make the city’s estimated payment costs $42,136,434. An additional 1,000 acre-feet would be another $4,635,000 in costs.

Staff members are seeking new resolutions to obtain the 10,000 acre-feet because the ones passed in 2008 were for lesser amounts.

The Loveland Utilities Commission unanimously approved the resolution being recommended to City Council.

#ColoradoRiver: Say hello to Grand County Learning by Doing #COriver

Here’s an introductory video.

Click here to go to the website. Here’s an excerpt:

The Grand County Learning By Doing Cooperative Effort (LBD) is a unique partnership of East and West Slope water stakeholders in Colorado.

LBD emerged from the Colorado River Cooperative Agreement, a five-year negotiation that became effective in 2013 and will be fully implemented with the successful construction of the Moffat Collection System and Windy Gap Firming Project. The agreement establishes a long-term partnership between Denver Water and Colorado’s West Slope, including several water utilities, nonprofit organizations and government agencies.

A Governance Committee oversees the LBD activities, with one voting member from each of these organizations:

  • Colorado Parks and Wildlife
  • Colorado River District
  • Denver Water
  • Grand County
  • Middle Park Water Conservancy District
  • Northern Colorado Water Conservancy District
  • Trout Unlimited
  • A Technical Committee, made up of representatives from the Governance organizations, as well as government agencies, regional water utilities and other partners, advises on LBD efforts and activities.

    The May 2016 E-Waternews is hot off the presses from Northern Water

    Map from Northern Water via the Fort Collins Coloradan.
    Map from Northern Water via the Fort Collins Coloradan.

    Click here to read the newsletter. Here’s an excerpt:

    State endorses the Windy Gap Firming Project
    During Northern Water’s April 13 Spring Water Users meeting, Mr. John Stulp, Governor Hickenlooper’s water policy advisor, read a letter from the governor endorsing the Windy Gap Firming Project.

    The governor said, “Northern Water and its many project partners have worked diligently, transparently and exhaustively in a collorabitve public process that could stand as a model for a project of this nature.” Hickenlooper continued, “This is precisely the kind of cooperative effort envisioned for a project to earn a state endorsement in Colorado’s Water Plan.”

    The state’s endorsement followed the Colorado Department of Public Health and Environment’s March 25 issuance of a 401 water quality certification for the WGFP. Project Manager Jeff Drager said, “This is the next to last step in getting the project permitted. 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.”

    This is the State of Colorado’s first endorsement of a water storage project.