Utility Committee Agenda and Packet 2018 06 22

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Description & Proposed Funding: Equipment/Project Description: This project will consist of the construction of a new pipeline and associated structures to allow for the delivery of replacement water from McKay Reservoir to Big Dry Creek. Cost allocation methodology for projects with more than one funding source: Project has only one funding source. Project revenue or grants, if any, that will support the project and the impacts to the operating budget: No grants have been identified at this time. Percent 100% Project Name: McKay Reservoir Pipeline Submitted By: Public Works Program(s): Utilities Six -Year (2019-2024) Capital Improvement Plan Request Form for Capital Equipment or Capital Project Identification and Funding Source Sub-Program(s): Water Funding Source(s): Version: 2/28/2018 Water Utility Fund 100% Estimated Cash Flow Schedule Equipment or Project Costs Year 1 2019 Year 2 2020 Year 3 2021 Year 4 2022 Year 5 2023 Year 6 2024 Six -Year Total Land Acquisition Design & Engineering Other Prof Services Construction Other Equip/Project Costs Capital Equipment Purch 100,000 977,000 100,000 977,000 Total Costs (Gross) 1,077,000 1,077,000 Grants or Other Off -Setting Revenue Impact to Annual Maint/Operating Costs Description and Justification Justification and Alignment with Program/Sub-Program Goals & Key Performance Indicators: Water replacement releases are required by decrees granted in 1995 and 2013 to allow the use of certain City water rights. These requirements impacts approximately 1,865 acre-feet (38%) of the City's firm supply. The impacted water shares have an estimated value of $3.7 million. This project will also have the capacity to compensate for additional shares making them a viable target for the pending future acquisitions scheduled to begin in 2021. There are a couple alternatives that have a greater level of uncertainty that are currently under evaluation. If any of the alternatives prove to be more advantageous this project will be requested to be reallocated in those direction(s). The inability to meet return flow requirements will prevent the use of these water rights. Is there a computer hardware or software component to this request? No If so, has I.T. Dept. reviewed this request? Department Priority Ranking: High Request Number: (Finance Use)