PANELISTS SEAN CHAMBERS DIRECTOR OF WATER AND SEWER CITY OF GREELEY
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 Early Greeley Water Transmission Wood Pipeline SHARING ARE ALL DERIVATIVES OF BANKING
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 Poudre River @ Prospect Street - River Mile 39 - MUNICIPAL STORAGE / BANKING IS CRITICAL BANKING FOR DROUGHT AND OTHER EMERGENCIES
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
Economics Changing Urban Land Use and Driving Changes in Municipal Customer Behavior 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 opportunities and supplies is preserving sustainable growth
SCARCITY AND COMPETITION ARE DRIVING NORTHERN COLORADO WATER MARKET VALUATIONS CBT Unit Prices: Value Increase > 450% increase over 7 years
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
Thank you. PRIVILEGED AND CONFIDENTIAL 10 Sean.Chambers@greeleygov.com Biz West Confluence Water Conference – July 18, 2018
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