annual report

S O U T H M E T R O WA T E R S U P P L Y A U T H O R I T Y

SOUTH METRO WATER SUPPLY AUTHORITY

In 2009, South Metro Water Supply Authority (SMWSA) celebrated our five-year milestone. The idea was simple: bring many smaller water entities in South Denver together to create a regional water authority. Together, our 14 members represent about half of Douglas County and 10 percent of Arapahoe County (based on land area). Our size gives us clout and we are using our bargaining power to accomplish our goal of securing water rights, building infrastructure, and transporting

and storing water for the benefit of our customers.

It has been a busy five years since our formation and much

has been accomplished. In 2009, we made tremendous

progress in all areas, with one of the more significant

accomplishments being our alignment with Denver Water

and Aurora Water to create the Water Infrastructure and

Storage Efficiency (WISE) Partnership. It only takes a quick

look at a map of the Denver Metro area to realize that

between SMWSA, Denver Water and Aurora Water, we

control a vast number of water assets in the Front Range.

Now, we’ll be working together to maximize the assets

we all have.

letter from C h A R l I E K R o g h

SMWSA 2009 annual report 01

Many of our members are pushing forward on

substantial water projects. The expansion of Parker Water and

Sanitation District’s Reuter-hess Reservoir is well underway,

with completion slated for 2012. The Chatfield Reservoir Real-

location Project is being considered by the U.S. Army Corps

of Engineers, and the Corp’s feasibility report is due in 2010.

Arapahoe County Water and Wastewater Authority launched

the Flow Project, a $153 million transaction that secures water

rights from the South Platte River Basin for decades to come for

their customers.

continued letter from C h A R l I E K R o g h

SMWSA 2009 annual report 02

In 2009, SMWSA also received a $425,000 grant from the

State of Colorado’s Water Supply Reserve Account for its

Aquifer Recharge Pilot Study. That study will allow us to learn

more about the potential to use existing water wells to store

future water supplies. We signed an agreement to engage in

dialogue with Wyoming water entities about the potential of

developing a large-scale trans-basin project from the Flaming

Gorge Reservoir in Wyoming. And, we welcomed our 14th

member, Rangeview Metropolitan District.

All of these accomplishments are detailed in our 2009 Annual Report. Ultimately, our goal is to secure water

supplies for our members and their end users. We live in a semi-arid region with an average rainfall of less

than 20 inches. Water, its use, flow, quality, ownership, storage and accessibility is what we think about

most of the time.

A big part of water management is

water conservation and all of our

members have conservation plans.

one of our members, Castle Pines,

has developed an award-winning

approach to conservation outlined

in this report.

We look forward to serving our

members in 2010.

Sincerely,

Charles KroghPresident

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SMWSA 2009 annual report 03

SMWSA 2009 annual report 04

WISE PARTNERShIP : : CooPERATIoN AND CohESIoN FoR ThE FUTUREThis year, we took a substantial step forward in realizing our goals by aligning with Denver Water and Aurora Water to create the Water Infrastructure and Supply Efficiency (WISE) Partnership.

The WISE Partnership roots are from an Intergovernmen-tal Agreement (IgA) signed in February 2008 between Aurora Water and Denver Water. That agreement was followed by SMWSA signing a memorandum of under-standing with Denver and Aurora in November 2008. Realizing that our goals were aligned, SMWSA then entered into a Joint Acquisition IgA with Denver Water and Aurora in May 2009.

The WISE Partnership will seek opportunities for the participants to realize greater efficiencies within our existing infrastructure and water rights. For SMWSA, that means we are entering into even greater regional cooperation and cohesion; we can get more use from our existing infrastructure; reduce our reliance on groundwa-ter; increase available sustainable water to our members; and help to meet our mid-term goals.

water rightsachievements

February 2008

Aurora Water and Denver Water Board

enter into IgA to investigate cooperative

water supply opportunities.

November 2008

South Metro Water Supply Authority signs

Memorandum of Understanding to explore

opportunities between the three entities.

May 2009

All three entities sign a Joint Acquisition IgA,

which allows the three entities to identify and

acquire certain infrastructure, water rights and

other assets in the South Platte River Basin.

The new entity is name the WISE (Water Infra-

structure and Supply Efficiency) Partnership.

November 2009

South Metro Water Supply Authority directs

its engineer, CDM, to initiate evaluations of

infrastructure needs associated with use of

WISE water supplies.

The backbone of every water entity is its water rights. At SMWSA, we understand that one of our fundamental tasks is to secure water rights for the benefit of our members. That’s why achievements in water rights are critical to our future.

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Co-WYo CoAlITIoN :: WoRKINg TogEThER ACRoSS STATE l INES

Transporting water across mountains, basins and state lines is nothing new in Colorado. Since 1890, projects of all

scales have been designed to bring water to a desired location. In 2009, SMWSA joined a coalition of Colorado

water entities interested in working together with Wyoming water entities to explore the possibility of building a

large-scale trans-basin project from the Flaming gorge Reservoir in Wyoming to the Front Range of Colorado.

SMWSA has invested $20,000 to help fund a feasibility study about building a pipeline from the Flaming gorge to

the Front Range. The coalition of water entities that have expressed interest in the project include the Town of Castle

Rock, Donala Water-Sanitation District in Colorado Springs, Parker Water and Sanitation District, Douglas County

in Colorado and laramie County, Wyoming, and the Wyoming cities of Cheyenne, Torrington and Rawlins.

It takes time, resources and cooperation to make a project of this scale a reality. once the Co-WYo Coalition

completes its preliminary study of feasibility, the Bureau of Reclamation will analyze the project, conducting its

own study. If completed, the Flaming gorge pipeline could bring approximately 140,000 acre-feet of water to

the Front Range, including some to SMWSA members.

The Green River’s headwaters are in the Wind River Mountains in Wyoming. The river winds through many deep canyons, including the Flaming Gorge, named by Major John Wesley Powell because of the sun’s reflection off the brilliant red rocks. The waters of the Green River are stored behind the Flaming Gorge Dam as part of the Colorado River Storage Project. The Flaming Gorge Dam was completed in 1964 and can hold 3,788,900 acre feet.

SMWSA 2009 annual report 05

SMWSA 2009 annual report 06

Large scale trans-mountain & trans-basin diversion projects in Colorado

grand River DitchMoffat TunnelTwin lakesAdams TunnelCo-Big Thompson ProjectRoberts Tunnelhoosier Tunnelhomestake TunnelBoustead TunnelWindy gap ProjectWolford Mountain Project

189019211930 19351938194619521956195719851996

Trans-mountainTrans-mountainTrans-mountainTrans-mountainTrans-basinTrans-mountainTrans-mountainTrans-mountainTrans-mountainTrans-basinTrans-mountain

20,000 af53,000 af38,000 af205,000 af213,000 af61,000 af9,600 af25,000 af55,000 af48,000 af10,000 af

AvERAgE DIvERTEDSTRUCTURE APPRox. DATE TYPE

Securing the Flow of Water for Years to Come in Arapahoe CountyIn 2009, Arapahoe County Water and Wastewater Authority (ACWWA) launched the Flow Project, a $153

million transaction that secures long-term surface water rights from the South Platte River Basin. Purchased from

the United Water and Sanitation District, the water rights are on the South Platte River in Weld County. ACWWA

has acquired space in East Cherry Creek valley Water and Sanitation District’s Northern Pipeline to transport

water to the ACWWA service area to be built in ACWWA’s service area. Construction for the project will

begin in 2010 and be completed by 2012.

ACWWA serves commercial and residential users in roughly 11 square miles in central Arapahoe County

and a small portion of Northern Douglas and Elbert counties. About 65 percent of ACWWA’s customers are

commercial entities and 35 percent are residential users. The Authority was formed in 1988 by an agreement

between Arapahoe County and the Arapahoe Water and Sanitation District to provide water and wastewater

service and develop water resources, systems and wastewater collection.

$94 million to purchase 4,400 acre-feet of water rights and associated retiming/storage/delivery facilities

$10 million to purchase capacity in the ECCv Water Treatment Plant

$9 million to purchase capacity in the ECCv Northern Pipeline and Pump stations

$16 million cost of storage reservoir outlet structures by Chambers Road and E-470

$19 million cost of easements in Well Fields, alluvial storage and delivery pipeline

$2 million 500 acre-feet of Northern Stor-age

$2.5 million interconnect line from ECCv Northern line to ACWWA service area

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SMWSA 2009 annual report 07

Effective water management includes taking advantage of wet

weather and storing the water for future use. Centennial Water

& Sanitation District properly planned for future water use for

its 90,000 Highlands Ranch customers when it bought a gravel

pit from Kiewit Western Company and turned it into a reservoir.

It opened in 2007.

Just two years later, the South Platte Reservoir is filled, in

part due to wet conditions, but also due to smart planning

by the Centennial Water & Sanitation District. The 6,400

acre-feet capacity reservoir is a raw storage site, storing

water from Centennial’s water rights on the South Platte

River. This $25 million reservoir is the newest facility in

Centennial Water’s conjunctive use system, which relies

predominantly on surface water, but combines the use

of both surface and ground water supplies.

The South Platte Reservoir was a mining and gravel operation owned by the Kiewit Western Company. The mining and gravel operation continued even as construction had begun on the reservoir.

hIghlANDS RANCh CUSToMERS BENEFIT FRoM WET WEAThER

Water storage is essential in our climate. Years ago, little could be done to capture the abundance of water that comes in a rush when the snow melts in spring and during the monsoons of summer. Now we can capture water and store it in places that make sense for delivery to users, including municipalities, agriculture and residents. Reservoirs dot the arid landscape, holding the water we need for efficient water planning.

REUTER-hESS RESERvoIR BRINgS ThE hoPE oF WATER To CoME

Construction of the 72,000 acre-foot Reuter-hess Reservoir continued unabated in 2009 and completion is not

far off. The current timeline calls for the reservoir to be done in 2012. Reuter-hess will serve the Parker Water

and Sanitation District area, as well as Douglas County communities, including Castle Rock, Castle Pines North

and Stonegate, through partnership agreements.

A series of blast in the summer of 2009 laid the groundwork for the spillway and extended the core trench.

The outlet tower and the first section of the bridge to the tower and dam are also complete.

originally permitted in 2004, Parker Water and Sanitation District received funding of $104 million to build a

16,400 acre foot reservoir. It didn’t take long for neighboring communities to see the value of participating in the

project and shortly after starting construction, the reservoir was enlarged to 72,000 acre feet to accommodate

the needs of Castle Rock, Castle Pines North and Stonegate Metropolitan District. The enlargement will add $60

million to the price of the project.

The additional costs are being paid for by the three communities joining the project are not by Parker Water and

Sanitation District customers. Parker Water will realize the benefit of having an additional approximate 45,000

surplus acre feet of storage, which can used for sale to other water suppliers or as carry-over storage of flood

water for future use.

water storage achievements

SMWSA 2009 annual report 09

SMWSA 2009 annual report 10

Ru

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Planning for Rueter-Hess began in 1985, when PWSD projected a water

shortfall. Since that time, conservation efforts have improved the long-term

outlook, but are not enough to eliminate future water shortages on their own

1986 :: Conservation efforts such as metering and xeriscape education implemented1987 :: PWSD demonstrates feasibility of re-injecting surplus water into Denver

Basin aquifers1991 :: PWSD becomes charter member of Douglas County Water Authority, which

cooperates on water conservation solution1996 :: Court decree entered for Rueter-hess 1996 :: First geotechnical studies at Rueter-hess1997 :: First environmental studies at Rueter-hess2000 :: U.S. Army Corps of Engineers draft Environmental Impact Statement (EIS)

process begins2001 :: Spring - Public input on draft Environmental Impact Statement2002 :: Final design2004 :: Completion of EIS process and approval for construction

S t a r t o f C o n s t r u c t i o n

2005 :: Request for enlargement of original project2006 :: Completion of Cherry Creek Diversion and Pump Station

ChATFIElD SEEKS To MAxIMIzERESERvoIR’S AlloCATIoN

Chatfield Reservoir lies on the South Platte River, at its confluence with Plum Creek, about 25 miles southwest of downtown Denver. It is one of the most visited state park’s in Colorado, Chatfield State Park, attracting 1.5 million visitors a year and collecting more than $2 million in revenue (in 2007). It is owned and operated by the U.S. Army Corps of Engineers.

The Park includes a full-service campground, miles of hiking, biking and equestrian trails, horse stables, a model

airplane field and a hot air balloon port, all of which are located around the lake.

As with other valuable water infrastructure assets, we must put them to their best use, helping to accommodate

the growth of the Denver Metro area. According to the U.S. Army Corps of Engineers, Chatfield Reservoir can

hold an additional 20,600 acre feet of water storage without limiting its usefulness as a flood control structure.

This additional storage space could be used by water

providers, farmers and environmental organizations to

meet the diverse needs of our growing population.

Currently the Corps is conducting a Feasibility Report and an

Environmental Impact Statement (FR/EIS). The study is being

funded by federal and state appropriations and local water

users. A final draft of the FR/EIS is expected to be released

in 2010. The public will have the opportunity to review and

comment on the draft FR/EIS, when it is released.

SMWSA 2009 annual report 12

Benefits of the Proposed Chatfield Reallocation Project

n IT WIll MAKE USE oF AN ExISTINg WATER SToRAgE FACIlITY

n IT WIll NoT REqUIRE CoNSTRUCTIoN oF A NEW WATER SToRAgE FACIlITY

n IT MAY BRINg SIgNIFICANT REvENUES To ThE FEDERAl TREASURY

n ThE WATER WIll oRIgINATE FRoM SNoWMElT AND SToRM WATER RUNoFF WIThIN ThE SoUTh PlATTE RIvER BASIN AND WIll BE CAPTURED AND SToRED IN ChATFIElD

n IT WIll PRovIDE ADDITIoNAl WATER FoR NoRThEAST ColoRADo FARMERS To hElP MEET CRITICAl IRRIgATIoN NEEDS

n IT WIll hElP CITIES AND SPECIAl DISTRICTS MEET DRINKINg WATER AND oThER MUNICIPAl NEEDS BoTh ABovE AND BEloW ChATFIElD

n IT WIll PRovIDE oPPoRTUNITIES FoR ENvIRoNMENTAl AND RECREATIoNAl ENhANCEMENTS AloNg ThE SoUTh PlATTE RIvER IN ThE 53-MIlE DENvER URBAN RIvER CoRRIDoR FRoM ChATFIElD RESERvoIR To BEloW ThE ADAMS CoUNTY-WElD CoUNTY lINE

Water doesn’t have to be stored only in a reservoir. It can

be stored in existing water wells. This is accomplished by

injecting water into an aquifer through wells or by surface

spreading and infiltration and then pumping it out when

needed. In 2009, SMWSA received a $425,000 grant from

the State of Colorado’s Water Supply Reserve Account

(WSRA) for a Aquifer Recharge Pilot Study.

This is the second phase of SMWSA’s study to determine the viability of implementing an Aquifer Storage and

Recovery (ASR) program in the South Metro area. ASR has been identified as a possible means to address

anticipated water shortages in South Metro Denver within the next two decades. Essentially, with ASR, the

aquifer functions as a water bank. Deposits are

made in times of surplus, and withdrawals occur

when available water falls short of demand.

other ASR projects are currently underway in the

South Metro area. Centennial Water and Sanitation

District, a member of SMWSA, has utilized ASR for

over a decade and continues to be an innovator in

the industry. ASR is also utilized in many other states

and countries, including California, Utah, Nevada,

South Carolina, Wisconsin, Africa, England

and Australia.

AqUIFER SToRAgE AND RECovERY PRogRAM CREATES NEW SToRAgE oPTIoNS

SMWSA 2009 annual report 14

SMWSA’s objectives for the second phase of the study include

n Identifying a source of renewable water to be used in a full-scale ASR program

n Identifying a well that may be suitable for retrofitting to an ASR well and undertake the necessary evaluations, including engineering conceptual-level design for retrofit, and geochemical analyses on the well to identify infrastructure and pre-treatment requirements

n Undertaking the design and construction needed to retrofit the well for ASR pilot testing and associated pretreatment

n Conducting pilot-scale ASR testing and evaluate the feasibility of implementing long-term ASR operations

n Providing recommendations for full-scale implementation of ASR in the South Metro area, including water pre-treatment needs, well preparation and retrofitting, and o&M

n Identifying existing ASR wells from which additional data can be gathered

n Developed a better understanding of aquifer characteristics relevant to well production, artificial recharge and conjunctive use within the South-metro area based on data from SMSWA members

n valuated previous studies and gathered additional information from SMWSA members in order to complete a detailed assessment of aquifer drawdown and an aquifer’s response to constant pumping

n Characterized the unit cost of producing potable groundwater, including the cost of pumping, water treatment, annual operations and maintenance, and evaluate if the unit costs vary over time throughout the year, or by geography

During the first phase of the study, also partially funded by the WSRA, SMWSA completed the following objectives

water infrastructureachievements

In addition to water rights and storage, SMWSA

members are working on construction the infrastructure

necessary to keep water flowing and ready for drinking.

ACWWA CoMPlETE JoINT WATER PURIFICATIoN PlANT

In 2009, ACWWA and the Cottonwood Water and Sanitation

District completed the Joint Water Purification Plant (JWPP).

This water treatment facility will treat Cherry

Creek water with multiple processes including

cartridge filters, reverse osmosis, advanced oxida-

tion, air strippers and disinfection. Wastewater from the

ACWWA and CWSD customers will be treated at the

existing ACWWA lone Tree Creek Wastewater

Treatment Plant.

The JWPP will eventually serve 12,000

residents and more than 30,000 employees.

It will provide up to 12 million gallons per day

of very high quality water from Cherry Creek,

a renewable source of water. The two water

authorities developed this cooperative project

to meet the increasing demand of their water

customers and reduce reliance on deep ground

water supplies that will eventually be depleted.

SMWSA 2009 annual report 16

Chambers Pipeline to Keep the Water Flowing

SMWSA began work on the Chambers Road pipeline in

2009. The pipeline will eventually connect Reuter-Hess

Reservoir and the East Cherry Creek Valley Water and

Sanitation District’s (ECCV) Western Line. The ECCV

Western Line is a key component to supplying renewable

water to South Metro’s members as well as the region.

In 2006, Castle Pines North Metropolitan District (District)

got serious about water conservation. The District completed

a Water Conservation Plan with the help of a $30,000 grant

from the Colorado Water Conservation Board. Diminishing

ground water supplies heightened the urgency of getting

the District’s constituents on board with more aggressive

conservation methods. The District relies on 10 wells that

pump groundwater from the Denver Basin.

The District established a 4-tiered water rate structure that charges customers more when allotted usages are

exceeded. It also offered rebates for water conservation items, both indoors and outdoors.

In 2007, the District purchased a Centralized Irrigation Flow Management System for controlling the precise

amount of water to be applied to large grass areas, such as parks. The system also detects leaks and automati-

cally shuts off the water zones. Also in 2007, a leak detection system was established for the District’s main

water and raw water lines. In 2009, a home audit program was established.

In 2009, several medians were renovated by removing blue grass and installing xeriscaping plant materials.

All of these efforts have lead to great results, including stabilizing water usage, more educated customers and

fewer customers paying Tier 4 water rates. last year the District paid out more that $20,000 in rebates. A sure

sign that water conservations pays off for everyone involved.

water conservationachievements

SMWSA 2009 annual report 17

SMWSA Board of Directors

B R I T TA S T R o T h E RSMWSA Water Resource Specialist

R o D K U h A R I C hExecutive Director

C h A R l I E K R o g hPresident

R o N R E D DVice Chair

D Av E K A U N I S T oTreasurer

J o h N h E N D R I C K Assistant Secretary Treasurer

F R A N K J A E g E RAssistant Secretary Treasurer

SMWSA 2009 annual report 18

contact us South Metro Water Supply Authority 8400 East Prentice Avenue, Suite 1500 greenwood village, Co 80111 p 303 409 7747

f 303 409 7748e info@southmetrowater.org

Arapahoe County Water and Wastewater AuthorityCastle Pines Metropolitan District

Castle Pines North Metropolitan DistrictCentennial Water & Sanitation District

Cottonwood Water and Sanitation DistrictEast Cherry Creek valley Water & Sanitation District

Inverness Water & Sanitation DistrictMeridian Metropolitan District

Parker Water & Sanitation DistrictPinery Water & Wastewater District

Rangeview Metropolitan DistrictRoxborough Water and Sanitation District

Stonegate village Metropolitan DistrictTown of Castle Rock

SMWSA Members

SMWSA 2009 annual report 19

hERE is a land where life is written in Water

the West is where the Water was and is

Father and Son of old Mother and Daughter

Following Rivers up immensities

Of Range and Desert thirsting the Sundown ever

Crossing a hill to climb a hill still Drier

Naming tonight a City by some River

A different Name from last night’s camping fire

looK to the Green within the Mountain cup

Look to the Prairie parched for Water lack

Look to the Sun that pulls the Oceans up

Look to the Cloud that gives the oceans back

Look to your Heart and may your Wisdom grow

To power of Lightning and to peace of Snow

— T h o m a s H o r n s b y F e r r i l