10-26-2004 NORMAN WOOD APPLICATION FOR WATER SUPPLY CONTRACTAPPLICATION FOR WATER SUPPLY CONTRACT
COLORADO RIVER WATER PROJECTS ENTERPRISE
OF THE
COLORADO RIVER WATER CONSERVATION DISTRICT
P.O. BOX 1120
GLENWOOD SPRINGS, COLORADO 81602
Phone (970) 945-8522
Fax (970) 945-8799
APPLICANT:
(The actual name, title & address of authorized person executing Water Supply Contract, not that of counsel, etc):
NAME:
Norman Wood
TITLE:
Town Engineer
COMPANY:
Town of Avon
STREET:
P.O. Box 975
CITY:
Town of Avon
ZIP CODE:
81620
PHONE:
FAX:
(970) 748-4045
(97(1) 949-5749
AGENT (If any-water consultandengineer, attorney, etc.):
NAME:
Les Botham
TITLE:
P.E.
COMPANY:
Leonard Rice Engineers, Inc.
STREET:
2000 Clay Street, Suite 300
CITY:
Denver
ZIP CODE:
8021 1-
5171
PHONE:
FAX:
(303) 455-
9589 (303)
POINT OF DELIVERY:
NAME OF STRUCTURE:
Avon Municipal Water System (W-3666, 8]CW217, 86CW200) & Bemchmark Lake (W-
PRIORITY DATE:
Apprpriated 8/31/1974
AMOUNT:
4.0 CFS absolute, 1.0 CFs conditional
STREAM:
Eagle River
SURFACE DIVERSIONS (if applicable):
Yes
GROUNDWATER DIVERSIONS (if applicable):
No
FOR USE BY (Check one)
DIRECT DELIVERY:
EXCHANGE:
AUGMENTATION:
X
WILL THE WATER BE USED IN AN AUGMENTATION PLAN?
F Y:
Yes
N:
IF YES, IS THE AUGMENTATION PLAN (Check one):
X
DECREED
(Attach Copy of Decree)
PENDING
(Attach Copy of Water Court Application)*
FUTURE
FILING"
ARE THERE RETURN FLOWS ASSOCIATED WITH THIS DEMAND?
Y:
Yes
N:
LOCATION OF THE RETURN FLOWS:
Wastewater Treatment Plants at Avon and Sqaw Creek
ATTACH A DETAILED DESCRIPTION OF THE PROPOSED USE OF THIS WATER
Page 1 of 3 tp
CONTRACT WATER REQUESTED
COLORADO RIVER WATER CONTRACTS .
Conventional Full Term (40 +35 year renewal)
Short-Term (1 - 5 years)
M&I Water ($125 a.f./yr)
Interim Agricultural ($25 a.f./yr.)
# of yrs
Interim M&I Water ($75 a
f
/yr
)
# of yrs
Agricultural Water ($125 a
f/
r)
.
.
.
.
y
Out-of-Basin Water ($500 a.f./yr.)
# of yrs
Payment Options:
Annual Payment Option
(see pricing above)
Up-Front Payment Option
($900 a.f. + O&M fee)
TOTAL AMOUNT REQUESTED (Must be rounded off in 1/10th a. f. units):
A.F.
Delivery Schedule:
JANUARY:
A.F.
JULY:
A.F.
FEBRUARY:
A.F.
AUGUST:
A.F.
MARCH:
A.F.
SEPTEMBER:
A.F.
APRIL:
A.F.
OCTOBER.
A. F.
MAY:
A.F.
NOVEMBER:
A.F.
JUNE:
A.F.
DECEMBER
A.F.
EA GLE RIVER WATER CONTRA CTS
(Limited Supply-inquire First)
Conventional Full Term (40 +35 year renewal)
Short-Term (1 - 5 years)
20Ac
Ft
M&I Water ($513 a.f./yr)
Interim M&I Water ($400 a.f./yr.)
# of yrs
Payment Options:
Annual Payment Option
(see pricing above)
Yes
Up-Front Payment Option
($6,700 a.f. + annual O&M fee)
TOTAL AMOUNT REQUESTED (Must be rounded off in 1/10th a.f. units):
A.F.
Delivery Schedule:
JANUARY:
3.0
A.F.
JULY:
0
A.F.
FEBRUARY:
3.2
A.F.
AUGUST:
0
A.F.
MARCH:
3.5
A.F.
SEPTEMBER:
0
A.F.
APRIL:
3.3
A.F.
OCTOBER:
0
A.F.
MAY:
A. F.
NOVEMBER:
3.4
A.F.
Page 2 of 3
I JUNE: 2006 A.F. DECEMBER 3.5 A.F.
COMMENCEMENT DATE OF DELIVERY (Check one):
Current Project Year (July 2004-June 2005)
(Payment due upon execution of contract)
Month:
X
Next Project Year (July 2005-June 2006)
(Payment due on or before April 1, 2005)
Month:
July 2005
AMOUNT REMITTED:
Application Fee: $250.00
X
Other Fees:
Total:
$250.00
The District may require further information to be submitted to process this application. If the use of
this water is determined by an applicable Federal agency to require site-specific compliance with the
National Environmental Policy Act (NEPA), that compliance will be the responsibility of the
Applicant. Applicant is responsible for consulting with the Army Corp of Engineers regarding the
need to comply with Section 404 of the Clean Water Act as the result of the construction of any
facilities necessary to use the contract water.
The Applicant hereby acknowledges receipt of the Water Marketing Policy of the Colorado River
Water Conservation District's Colorado River Water Projects Enterprise, dated April 15, 2003
(Policy).
*Pursuant to the Policy, the Enterprise will oppose Water Court applications that propose use of the
Enterprise's water supplies without the existence of a current Water Supply Contract or are otherwise
at variance with the Policy. If the Applicant has filed a Water Court application without having
executed a Water Supply Contract and the Enterprise has opposed that application, the water supply
contract application fee is $500.00.
**Applicants are advised to identify Wolford Mountain Reservoir and Ruedi Reservoir in all
applications and/or decrees relying on the Enterprise's Colorado River Supply or Eagle River Supply.
PLI T:
SIGNED: ~.1ti.✓,,
TITLE: m~
DATE: 1C~o~lo`CJ~ U
Paee 3 of 3 n
Detailed Description of the Proposed Use of this Water
This water will be used for one of two purposes. The main purpose will be to supplement the
augmentation water that the Town of Avon (Avon) has by virtue of its change case W-3664, and
its augmentation plans, W-3664, 84CW225, 95CW348, and 99CW1721. Municipal diversions
are made under Avon's Avon Municipal Water System water right (4.0 CFS absolute, 1.0 CFS
conditional) at two locations.
• The Upper Eagle Regional Water Authority (Authority) diverts the majority of Avon's
municipal water at the headgate of the Metcalf Ditch. The Authority also diverts
municipal water at that location for other entities.
• Avon, also diverts water under its Avon Municipal Water System water right out of its
Benchmark (a.k.a. Nottingham) Lake, which is filled from the Eagle River via the
Metcalf Ditch. That water is used for irrigation around the lake and in the general area.
Presently, the Authority operates Avon's augmentation plans (84CW225, 95CW348 and
99CW172). These plans include direct use of Avon's changed irrigation credits during the
irrigation season, exchange into upstream storage (in Eagle Park Reservoir) of changed excess
irrigation-season irrigation credits, and release from storage to cover non-irrigation season
augmentation requirements. The existing augmentation plans commit a total of 348.17 acre feet
out of the total of 448 acre feet of available credits. This is adequate for Avon's existing level of
development, and for the near future. As Avon grows in the future, more of the surplus 98.83
acre feet of augmenting credits may be required. Avon desires this contract for 20 acre feet from
the River District to supplement and provide a degree of cushion for augmenting its future
growth.
The pattern for release of the 20 acre feet follows the pattern of release out of Eagle Park
Reservoir, when it will be used as an additional source of augmentation water.
The second way the water will be used is to fill or "refresh" Benchmark Lake, a.k.a. Nottingham
Reservoir. The lake is filled primarily from the Eagle River via the Nottingham Ditch. Avon
may call for the water in the same pattern as when used for augmentation, or in some other
pattern yet to be determined.
Case No. W-3666 is Avon's original change case and augmentation plan. It quantified the historical irrigation
consumptive use credits (448 acre feet per year), established Benchmark Lake as the augmentation storage facility,
and committed a total 244.3 acre feet to the augmentation plan. Case 84CW225 expanded the augmentation plan, to
include a total of 282.83 acre feet. The Authority filed Case No. 95CW348, which moved the augmentation storage
component of Avon's augmentation fi-om Benchmark Lake to the Eagle Park Reservoir, and committed another 51.3
acre feet of augmentation credits (bringing the total to 334.13 acre feet). Avon filed Case No. 99CW 172, which
clarified the history and operation of its augmentation plans, and committed another 14.04 acre feet of credits
(bringing the total to 347-8.17 acre feet).
C\
Memo
To: Honorable Mayor and Town Council
Thru: Larry Brooks, Town Manager
From: Norman Wood, Town Engineer
Date: October 20, 2004
Re: Colorado River Water Conservation District - Application for Eagle River Water
Supply Contract - 20 Ac-Ft
Summary: The attached Colorado River Water Conservation District
Memorandum by Dave Merritt was recently posted on their Web Site. It indicates the District
is finalizing an Agreement for the acquisition of 500 ac-ft of Homestake Reservoir supplies.
Subsequently, we were able to discuss this with Dave Merritt following his Water Wise
Wednesday presentation. This water will be available in the form of a 40-year lease with a
35-year renewal. Payment can be made in the form of annual payments of $513/ac-ft/year or
an Up-Front Payment of $6,700/ac-ft plus an annual O&M Fee. The O&M fee is currently
$51.00/ac-ft/year and is adjusted every 5-years based on the CPI. We were advised that we
could file an Application for up to 20 Ac-Ft of water from this source.
We have completed a Water Rights/Development Analysis with projected development
ranging from 3114 SFE's (Single Family Equivalents) to 5167 SFE's. These development
scenarios were then used to project water right demands for comparison with available water
rights. This analysis is summarized in Table 1.
L\Engineering\Water\Water Rights\CRWCD Application\Application Memo-?.Doc
TABLE 1
1
2
3
4
5
Supply
Projected
Water
Water
per
Contingency
Development
Required
Available
Demand
(3/2)
(3-2)
SFE's
Ac-Ft
Ac-Ft
%
Ac-Ft
3114
216.22
386.03
179
169.81
4139
287.39
386.03
134
98.64
4513
313.36
386.03
123
72.67
4793
332.80
386.03
116
53.23
5167
358.77
386.03
108
27.26
THIS table indicates that the Town's 448 ac-ft of available water rights will not provide 40
Ac-Ft for refilling Nottingham Lake and provide the required consumption for 5167 SFE's.
An additional 20 ac-ft of available water would provide this cushion. We believe it would be
very prudent to add 20 ac-ft of Eagle River Water to our current rights to maintain as
insurance to potential development changes.
Les Botham, our water engineer, has prepared the attached Application for an Eagle River
Water Contract with the District for 20 ac-ft. with the Up-Front Payment Option of $6,700/ac-
ft/year. This Application is based on the lease beginning in July 2005 with payment due on or
before April 1, 2005. The Up-Front Lease Payment would be $ 134,000 with an annual
O&M Fee of $ 1,020. The latest Drafts of the CIP Budget and Water Fund Budget have been
revised to reflect this acquisition in 2005. The Filing Fee that must be submitted with this
Application is $ 250.00.
We recommend that Council approve and authorize the filing of this Application for Water
Supply Contract with the Colorado River Conservation District for a Conventional Full Tenn
(40 + 35 year renewal) Eagle River Water Contract for 20 ac-ft with an Up-Front Payment of
$6,700 / ac-ft plus annual O&M Fee (currently $51.00/ac-ft/year).
• Page 2
Z
Recommendation: Approve and authorize the filing of an Application
for Water Supply Contract with the Colorado River Conservation District for a Conventional
Full Tenn (40 + 35 year renewal) Eagle River Water Contract for 20 ac-ft with an Up-Front
Payment of $6,700 / ac-ft plus annual O&M Fee (currently $51.00/ac-f /year).
Proposed Motion: I move to approve and authorize the filing of an
Application for Water Supply Contract with the Colorado River Conservation District for a
Conventional Full Term (40 + 35 year renewal) Eagle River Water Contract for 20 ac-ft with
an Up-Front Payment of $6,700 / ac-ft plus annual O&M Fee (currently $51.00/ac-ft/year).
Town Manager Comments:
l~'l rr}~vn a q6e5 hanA- trv-a~
J
~D rQ ec+ed deAte(gmest~
~0 r ~S ap t vs M-e m o
P~
. Page 3
3
.r
t' COLORADO RIVER WATER
_ CONSERVATION DISTRICT
4b'esfern (~o~orC;f>'o t~<<rl~r S~r1; i i 9,7
MEMORANDUM
OCTOBER 9, 2004
TO: BOARD OF DIRECTORS
FROM: DAVE MERRITT
RE: WATER PROJECTS ENTERPRISE - EAGLE RIVER OPERATIONS
Eagle Park Reservoir filled to near capacity(2,926 acre feet) on July 12th of this year, and
made some limited augmentation releases. With snowmaking coming on soon, these releases are
likely to increase. We were able to make our exchange repayment to Homestake Reservoir from
Wolford Mountain in the amount of 778 acre feet; however, we are having difficulty with the USBR
in using the Vail Resorts and Upper Eagle Regional Water Authority contracts for the repayment
this year. Because we have to stayed ahead of the "payback" to the Homestake Partners the last few
years, the USBR is now interpreting this as facilitating a "carryover" of Green Mountain Reservoir
contract water, which is not allowed under the contracting provisions. This problem, as well as the
"accounting issue" which we have with Colorado Springs, continue to require us to place a hold on
issuing any contracts for the additional Homestake Reservoir water.
Eagle Park Reservoir went into last fall full at 3148 acre feet, and released 946 acre feet
to replace Eagle River depletions. These releases allowed the snowmaking and associated uses in
the Vail to Edwards area to continue without impacting the instream flow of Gore Creek and the
Eagle River at this critical time of the year, both for the stream and for the area economy.
To date, the District has issued 40 contracts for Eagle River supplies in the amount of 249
acre feet, and we 5 contracts pending for 33 acre feet. Eagle County exercised their option, under
the original MOA, to purchase full ownership of 50 acre feet of Eagle Park Reservoir supplies Eagle
County, they then assigned 24 acre feet to the Upper Eagle Regional Water Authority for an Eagle
County project requiring water supply, and we are now going through the process to transfer the
remaining shares back to the Enterprise as a holding entity. In this manner, Eagle County will not
be a shareholder in the EPRC when it comes to the County for 1041 permitting issues surrounding
Suite #200 * 201 Centennial Street / PO Box 1120 Glenwood Springs, Colorado 81602
(970) 945-8522 * (970) 945-8799
the development of additional supplies.
This will likely be soon, as Climax has indicated that they wish to either proceed with the
development of the 6 cfs East Fork Pumpback (thereby regaining their full use of the Arkansas) or
pay the EPRC the estimated cost of that facility. EPRC would then proceed to re-permit and
construct a 15 cfs East Fork pumpback. It is expected that this activity will proceed in 2005/2006.
We have completed the agreements with Aurora for the additional 500 acre feet of
Homestake Reservoir supplies, but have run into a disagreement with Colorado Springs on the
manner of exchange payback on these supplies. Hopefully, this will be resolved this fall, and we
can proceed with marketing this water. Although the Board accepted the staff recommendation in
July to only initially release 30 acre feet of our 125 for marketing, we currently have 33 acre feet
of contract requests pending. We are recommending that the Board increase this to 50 acre feet.
RECOMMENDED BOARD ACTION. Direct the staff to market up to 50 acre feet from the
125 acre feet of 2004 MOU water supplies, upon resolution of the repayment exchange
accounting issues.
6