SEAN CHAMBERS DIRECTOR OF WATER AND SEWER CITY OF GREELEY - - PowerPoint PPT Presentation

SEAN CHAMBERS

DIRECTOR OF WATER AND SEWER CITY OF GREELEY

PANELISTS

THOUGHTS ON WATER BANKING THROUGH THE MUNICIPAL LENS

PRESENTED BY SEAN CHAMBERS DIRECTOR OF WATER & SEWER – CITY OF GREELEY

BANKING WATER

ADDRESSING VARIABILITY

• EARLY WESTERN SETTLERS RECOGNIZED

HYDRAULIC VARIABILITY, TIMING OF SNOWMELT VARIABILITY, FLOODS AND COMPETITION OVER A SCARCE SUPPLY AS THREATS TO AGRICULTURE AND ESTABLISHING SUSTAINABLE SOCIETY

• WATER RIGHTS PRIORITY SYSTEM – CREATED

FRAMEWORK FOR RESOURCE ACCOUNTING

• BANKING IN THE FORM OF WATER STORAGE,

GROUNDWATER DEVELOPMENT, AQUIFER STORAGE AND RECOVERY, ATM’S AND WATER SHARING ARE ALL DERIVATIVES OF BANKING

Early Greeley Water Transmission Wood Pipeline

MUNICIPAL PROVIDERS COMMIT TO SERVE PERPETUALLY THROUGH FLOODS, FIRES, GROWTH AND DROUGHT

• PERPETUAL COMMITMENT SERVE

REQUIRES A ROBUST PORTFOLIO

• PLANNING FOR THE UNKNOWN, AND

STRATEGIES TO NAVIGATE VARIABILITY

• WATER STORAGE IS A PHYSICAL

BANKING STRATEGY

• ALLOWED MANY CIVILIZATIONS TO

CARRY OVER YIELD FROM GOOD YEARS INTO DRY

• MUNICIPAL STORAGE / BANKING IS

CRITICAL BANKING FOR DROUGHT AND OTHER EMERGENCIES

Poudre River @ Prospect Street - River Mile 39

WATER A FUNDAMENTAL FACTOR OF PRODUCTION IN THE WEST

WATER SUPPLY IS A FINITE AND SCARCE RESOURCES IN THE WEST

• IN THE FRONT RANGE METRO GROWTH AREA; AVAILABLE,

RELIABLE WATER RESOURCES ARE UNDER INTENSE PRICE ESCALATION PRESSURE

• THE RESULT OF ROBUST ECONOMIC GROWTH
• WATER LEAVING NORTHERN COLORADO FOR DENVER METRO

OR ELSEWHERE IS EXPORTING A FUNDAMENTAL FACTOR OF PRODUCTION

• LIMITING THE POTENTIAL OF LARIMER AND WELD COUNTY

ECONOMIES

Intense local competition for Colorado Big Thompson, Native Poudre and Big Thompson water supplies are driving rapid price escalation Economic Growth is driving water prices and land prices at a faster and faster pace…

• Costs are increasing at an

increasing rate

• Denver Metro Economies still

find value in NoCo Resources

• Preservation of future
• pportunities and supplies is

preserving sustainable growth

Economics Changing Urban Land Use and Driving Changes in Municipal Customer Behavior

SCARCITY AND COMPETITION ARE DRIVING NORTHERN COLORADO WATER MARKET VALUATIONS

Value Increase > 450% increase over 7 years CBT Unit Prices:

NOCO MUNICIPALITIES ARE WELL POSITIONED TO MANAGE RISK THROUGH WATER BANKING STORAGE AND SHARING CONCEPTS

• SOME PROJECTS ARE TOO LARGE OR REQUIRE WIDESPREAD

POLITICAL WILL FOR A SINGLE MUNICIPALITY TO DEVELOP

• MANAGING RISK AND FIDUCIARY RESPONSIBILITY ON LARGE SCALE

PROJECTS IS BEST DONE THROUGH REGIONAL APPROACHES AND PARTNERSHIPS.

• NORTHERN COLORADO MUNICIPALITIES HAVE A LONG HISTORY OF

SHARING EXCESS RESOURCES WITH THE NOCO AGRICULTURE AND INDUSTRY – ECONOMIC STABILITY

• LEASE WATER BACK FROM AG IN DROUGHT
• NOCO MUNICIPALITIES VALUE ROLE OF AGRICULTURE IN OUR SOCIETY,

OUR ECONOMY AND OUR FOOD SUPPLY

• DEMAND SHIFTING URBAN IRRIGATION TO NON POTABLE AND RAW

WATER SYSTEMS FOR GROWING OUR FUTURES

• MANAGING SUPPLY, PREPARING FOR VARIABILITY, AND MANAGING

COSTS FOR MUNICIPAL WATER USERS

SUMMARY: MUNICIPALITIES ARE DRIVEN TO MANAGE RISK AND PROVIDE RELIABLE SERVICE AT AFFORDABLE PRICES

THE MUNICIPAL UTILITY BUSINESS MODEL AND PUBLIC HEALTH REQUIREMENTS DRIVES MUNICIPAL PROVIDERS TO SECURE SUPPLIES FOR THE FUTURE AND MANAGE RISK; AND THERE IS A ROLE FOR REGIONAL WATER SHARING, STORAGE, AND OTHER BANKING STRATEGIES TO MEET UNKNOWN VARIABILITY WATER SHARING, BANKING, ALTERNATIVE TRANSFERS AND REGIONAL STORAGE REQUIRES OUR UNDERSTANDING OF WHAT IS AT RISK AND WHAT WE STAND TO GAIN FROM WORKING TOGETHER – THINK GAME THEORY

PRIVILEGED AND CONFIDENTIAL

Thank you.

Biz West Confluence Water Conference – July 18, 2018 10

Sean.Chambers@greeleygov.com