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HomeMy WebLinkAboutTask Order No. 10085 with Hydro Logic for Continueing Services on Water Rights HousekeepingMemo To: Jaycee Holman; Tara Green From: Kyle Radek CC: File Date: 9/21 /09 Re: Prpposed Agenda Item for October 6 City Council Meeting The Public Works Department respectfully requests the following item be placed on the October 6 City Council agenda, under consent agenda, for Council's consideration: Task Order 10085 with Hydro Logic for continuing services on Water Rights Housekeeping Public Work recommends City Council approves the Task Order 10085 with Hydra Logic for Water Rights Housekeeping for $81,650 for expenditure in FY 2010 and authorizes the Mayor to sign it. This task order continues water rights efforts that Hydro Logic has previously completed and includes the following work: • Develop comprehensive water rights portfolio files • Complete water rights transfers for post-1987 licenses • System wide proof of beneficial use examination • On-going permit licensing examinations • Meetings with the Idaho Department of Water Resources director and staff and city staff This work is needed to organize, secure, and exploit our water rights portfolio which is critical to the long-term viability of the City's water utility. This project is part of Groundwater Master Planning scheduled for FY 10 and will be charged to consulting 3410-55103. Thank you for your consideration. Please contact me rf you have any questions regarding this item. ~ Yage 1 TASK ORDER NO. 10085 CITY OF MERIDIAN (OWNER) AND HYDRO LOGIC, INC. (HYDROGEOLOGIST) This Task Order is issued by Owner and accepted by the Hydrogeologist pursuant to the mutual promises, covenants and conditions contained in the Agreement between the above named parties dated February 18, 2007. CITY OF MERIDIAN POST- SNAKE RIVER BASIN ADJUDICATION MUNICIPAL WATER RIGHTS APPLICATIONS, TRANSFERS, AMENDMENTS TO PERMITS, COMPREHENSIVE WATER RIGHTS FILES COMPILATION, SYSTEM WIDE PROOF OF BENEFICIAL USE EVALUATION, AND PERMIT LICENSING EXAMINATIONS PURPOSE Prior to a few years ago, the City costs with respect to water rights were very small and generally tied to getting approvals to drill wells. The low cost is a reflection that the City was, more-or-less, not paying attention to water rights issues and, as a result, the City got way behind in planning and providing for its water rights. In this same fashion, the City may miss out on many available opportunities that will effect its growth and casts well into the future. The City continues to have options and urgent needs with respect to its current and future water rights portfolio that it CANNOT ignore any longer. The City entered into a contract with Hydro Logic, Inc. in 2005 to commence work on these issues but work on that project was arrested by the Snake River Basin Adjudication which is only now (today actually) being concluded with respect to the City's municipal water rights. The work accomplished under this contract with respect to the SRBA resulted in many positive gains for the City and the City's water rights are now much improved. With the SRBA concluding, the City now can resume the water rights work it had planned prior to that work being curtailed by the SRBA. The Hydrogeologist's scope of services, time of completion and compensation shall be as set forth herein. Services shall generally be described as Hydrogeological Consulting Services as described within this Task Order. TASK 1.1 -DEVELOP COMPREHENSIVE WATER RIGHTS PORTFOLIO FILES This task will involve an exhaustive duplication of the City's municipal water rights portfolio from the IDWR's vault. Each individual water right will be organized in chronological order and bound in a heavy duty file folder. All water right information from the City's files and its consultant's files will be collated into the bound files as well. Reliverable will be a comprehensive, up-to-date and organized set of files for the City's entire water right portfolio. TASK 1.2 -COMPREHENSIVE WATER RIGHTS TRANSFER fOR POST-1987 LICENSES Pending the outcome of the SRBA, this comprehensive transfer application has been on hold. Now we know that many flexibilities have been extended to the City's pre-1987 (the date of the SRBA) water righ#s that now need to be extended to its post-1987 rights. The SRBA adjudicated water rights up until June of 1987 only and because of the City's growth spurt after 1987, a great many of the City's water rights post date the SRBA. The City has abandoned wells that need to be transferred to new points of diversion and all post-1987 wells need to be included. The flexibilities include making all of the City's wells points of diversion for all of its water rights and removing past restrictive conditions from its water right licenses. TASK 1.3 -SYSTEM-WIDE PROOF OF BENEFICIAL USE EXAMINATION Up to this point in time, Meridian has relied upon filing new water rights applications for each new well to be constructed. This may have resulted in the City owning more "paper" water rights than it needs to supply its demand. The IDWR is questioning this very scenario and it will be difficult (if not impossible) for the City to apply for additional water rights permits without reconciling its current use with its existing water rights portfolio. indeed, the City's approved permits for the last several years have carried conditions that require such a reconciliation prior to licensure of the permits. This same "reconciliation" is what is required by Meridian for any future needs application: thus adding more emphasis on the need to more forward with such an evaluation and documentation of the City's current water usage. This task will cover quantification of the City's water use with respect to its water rights and the filing of the system wide Proof of Beneficial Use examination. TASK 1.4 - ON-GOING PERMIT LICENSING EXAMINATIONS The City has had to do one Beneficial Use licensing examination for one well per year for the last 5 years. We expect to do at least one POBU licensing examination for the City every year for the next 5 years. In addition, the changes in administration and contract difficulties of the last two years have resulted in the City getting behind on these submittals. Therefore additional POBU exams will be required for the next two years. The estimated cost of each POBU examination is ~ $3K. This task will bring the City current with its proof of bene#icial use examinations with the ultimate goal of converting all of the City's outstanding Permits to Licenses. TASK 1.5 -MEETINGS WITH THE IDWR DIRECTOR AND STAFF AND CITY Conjunctive management issues at the Department have appeared to become less of an issue for Meridian because the Director indicated to Tom Barry and Ed Squires in their recent meeting together that the ground water gradient "downstream" of the city is beyond (lower} on the conjunctively managed portion of the Boise River. However, recent involvement with the IDWR suggests that its position an conjunctive management may be changing. The effects of pumping on the River are also moving down-gradient and the City is well advised to keep this management issue in mind as it moves forward. The concept of "Reasonably Anticipated Future Needs", an application the City intends to address as soon as its other water rights "housekeeping" issues (this task order} are put to bed, is also in flux and the City will be kept advised to developing administration in this arena as well. Frequent meetings with the Director and/or his senior staff so that the City can "stay in front of the Department" and the Water Resources Board" would be wise and this task provides for this. The Owner will provide access to data. Hydrogeologist will work closely with the City's Public Works and Water Departments and provide legal expertise on an as needed basis within its scope of work. It is anticipated that Charlie Honsinger of Ringert Law, the City's current water attorney of record in the SRBA, would be consulted owing to his familiarity with the City's water rights portfolio. The legal costs are included within our proposed scope of work. TIME OF COMPLETION The area of water rights is in constant flux and municipalities appear to be always breaking new ground at the Department. The limited staff and resources at the Department do not help this situation. Therefore, it is quite difficult to estimate the time frame for these initiatives and the associated processing queue. While we want to think in terms of "as soon as possible" the reality is that we just really don't know until we try. Therefore, it is recommended that this task order be considered as a two-year project. Deliverables, such as transfer filings and proof of beneficial use examinations can be continuously in the works and the City should expect monthly progress and project updates. COMPENSATION Based upon the attached estimated costs spreadsheet, it has been determined that The Not-To- Exceed amount for this Task Order No. 10085 is eighty one thousand six hundred and fifty dollars ($ 81,650). The hourly rates for services and direct expenses is attached and by this reference made a part hereof. It is anticipated that HLI will invoice the City monthly as the work progresses. CITY OF MERIDIAN BY: ~ .h~Gf ~ eG~~e~~ ~~ TAMNy~ WEERD,MAYOR HYDROGEOLOGIST ED SQUIRES, HYDRO LOGIC, INC. Attest: .~`~~~y OF MERE i ~~'% c1. \~oFworroro9~. '. J CEE OLMAN, CITY CLERK SEAL q P ~\ ,, ' Ot1N7Y ~ ~. ~ ~ ''~~n~rmn ni~~~~~a\ TASK ORDER NO. '10085 CITY OF MERIDIAN {OWNER) AND HYDRO LOGIC, INC. {HYDROGEOLOGIST) This Task Order is issued by Owner and accepted by the Hydrogeolagist pursuant to the mutual promises, covenants and conditions contained in the Agreement between the above named parties dated February 18, 2007. CITY OF MERIDIAN POST- SNAKE RIVER BASIN ADJUDICATION MUNICIPAL WATER RIGHTS APPLICATIONS, TRANSFERS, AMENDMENTS TO PERMITS, COMPREHENSIVE WATER RIGHTS FILES GOMPILATION, SYSTEM WIDE PROOF OF BENEFICIAL USE EVALUATION, AND PERMIT LICENSING EXAMINATIONS PURPOSE Prior to a few years ago, the City costs with respect to water rights were very small and generally tied to getting approvals to drill wells. The low cost is a reflection that the City was, more-or-less, not paying at#ention to water rights issues and, as a result, the City got way behind in planning and providing for its water rights. In this same fashion, the City may miss out on many available opportunities that will effect its growth and costs well into the future. The City continues to have options and urgent needs with respect to its current and future water rights portfolio that it CANNOT ignore any longer. The City entered into a contract with Hydro Logic, Inc. in 2tJd5 to commence work on these issues but work on that project was arrested by the Snake River Basin Adjudication which is only now (today actually) being concluded with respect to the City's municipal water rights. The work accomplished under this contract with respect to the SRBA resulted in many positive gains for the City and the City's water rights are now much improved. With the SRBA concluding, the City now can resume the water rights work it had planned prior to that work being curtailed by the SRBA. The Hydrogeologist's scope of services, time of completion and compensation shall be asset forth herein. Services shall generally be described as Hydrogeological Consulting Services as described within this Task Order, TASK 1,1 -DEVELOP COMPREHENSIVE WATER RIGHTS PORTFOLIO FILES This task will involve an exhaustive duplication of the City's municipal water rights portfolio from the IDWR's vault. Each individual water right will be organized in chronological order and bound in a heavy duty file #order. All water right information from the City's files and its consultant's files will be collated into the bound files as well. Deliverable will be a comprehensive, up-to-date and organized set of files far the City's entire water right portfolio. TASK 1.2 -COMPREHENSIVE WATER RIGHTS TRANSFER FOR POST-1987 LICENSES Pending the outcome of the SRBA, this comprehensive transfer application has been on hold. Now we know that many flexibilities have been extended to the City's pre-1987 {the date of the SRBA) water rights that now need to be extended #o its post-1987 rights. The SRBA adjudicated water rights up until June of 1987 only and because of the City's growth spurt after 1987, a great many of the City's water rights post date the SRBA. The City has abandoned wells that need to be transferred to new points of diversion and all post-1987 wells need to be included. The flexibilities include making all of the City's wells points of diversion for all of its water rights and removing past restrictive conditions from its water right licenses. TASK 1.3 -SYSTEM-WIDE PROOF OF BENEFICIAL USE EXAMINATION Up to this point in time, Meridian has relied upon filing new water rights applications for each new well to be constructed. This may have resulted in the City awning more "paper" water rights than it needs to supply its demand. The IDWR is questioning this very scenario and it will be difficult {if not impossible) for the City to apply for additional water rights permits without reconciling its current use with its existing water rights portfolio. Indeed, the City's approved permits for the last several years have carried conditions that require such a reconciliation prior to licensure of the permits. This same "reconciliation" is what is required by Meridian for any future needs application; thus adding more emphasis on the need to more forward with such an evaluation and documentation of the City's current water usage. This task will cover quantification of the City's water use with respect to its water rights and the filing of the system wide Proof of Beneficial Use examination. TASK 1.4 - ON-GOING PERMIT LICENSING EXAMINATIONS The City has had to do one Beneficial Use licensing examination for one well per year for the last 5 years. We expect to do at least one POBU licensing examination for the City every year for the next 5 years. In addition, the changes in administration and contract difficulties of the fast two years have resulted in the City getting behind on these submittals. Therefore additional POBU exams will be required for the next two years. The estimated cost of each POBU examination is ~ $3K. This task will bring the City current with its proof of beneficial use examinations with the ultimate goal of converting all of the City's outstanding Permits to Licenses. TASK 1.5 -MEETINGS WITH THE IDWR DIRECTOR AND STAFF AND CITY Conjunctive management issues at the Department have appeared to become less of an issue for Meridian because the Director indicated to Tom Barry and Ed Squires in their recent meeting together that the ground water gradient "downstream" of the city is beyond {lower) on the conjunctively managed portion of the Boise River. However, recent involvement with the IDWR suggests that its position on conjunctive management may be changing. The effects of pumping on the River are also moving down-gradient and the City is well advised to keep this management issue in mind as it moves forward. The concept of "Reasonably Anticipated Future Needs", an application the City intends to address as soon as its other water rights "housekeeping" issues (this task order) are put to bed, is also influx and the City will be kept advised to developing administration in this arena as well. Frequent meetings with the Director and/or his senior staff so that the City can "stay in front of the Department" and the Water Resources Board" would be wise and this task provides for this- The Owner will provide access to data. Hydrogeologist will work closely with the City's Public Works and Water Departments and provide legal expertise on an as needed basis within its scope of work. It is anticipated that Charlie Honsinger of Ringert Law, the City's current water attorney of record in the SRBA, would be consulted owing to his familiarity with the City's water rights portfolio. The legal costs are included within our proposed scope of work. TIME OF COMPLETION The area of water rights is in constant flux and municipalities appear to be always breaking new ground at the Department. The limited staff and resources at the Department do not help this situation. Therefore, it is quite difficult to estimate the time frame for these initiatives and the associated processing queue. White we want to think in terms of "as soon as possible" the reality is that we just really don't know until we try. Therefore, it is recommended that this task order be considered as a two-year project. Deliverables, such as transfer filings and proof of beneficial use examinations can be continuously in the works and the City should expect monthly progress and project updates- COMPENSATION Based upon the attached estimated costs spreadsheet, it has been determined that The Not-To- Exceed amount for this Task Order No. 10085 is eighty one thousand six hundred and fifty dollars ($ 81,650). The hourly rates for services and direct expenses is attached and by this reference made a part hereof. It is anticipated that HLI will invoice the City monthly as the work progresses. CITY OF MERIDIAN NYDROGEOt_OGIST BY' ~; ~.__ TAMMY de WEERD, MAYOR ED SQUIRES, HYDRO LOGIC, INC. Attest: JAYCEE HOLMAN, CITY CLERK