Review and provide comment.

Jacobs Engineering (consultant) and Staff will be providing a status update on the Red Gap Ranch Feasibility study being performed for Water Services. Purpose of this Feasibility study is to provide Council an accurate cost estimate and alignment in which to make an informed decision on the path forward for future Water Resources.

 The purpose of this presentation is to obtain input and direction from City Council on segment 3 alignment. Segments 1 & 2 (Red Gap Ranch to Winona) have been finalized by Jacobs including the Inter-Governmental Agreement (IGA) with Arizona Department of Transportation (ADOT) along these two segments. Selection of segment 3 alignment, from Winona to Flagstaff, had to be re-evaluated due to information received from the United States Forest Service.
 

As a part of Water Services planning efforts, the need to supplement the City’s existing water supplies to meet projected future needs has been identified. These planning efforts identified numerous options to meet this estimated unmet water demand.  Red Gap Ranch was identified as one option and the voters approved bonding authority in 2004 and City Council authorized the purchase of the ranch in 2005.  The ranch is an 8,500-acre parcel of city-owned land located approximately 40 miles east of the City and is intended to be a future source of groundwater supply.  The City has performed several hydrogeologic studies at the ranch to determine the potential water supply yield.  The Arizona Department Water Resources has approved this groundwater supply as part of the City's Designation of Adequate Water Supply.

The City commissioned this feasibility study in June 2008 to analyze alternative pipeline alignments to convey water from the ranch to the City. This feasibility study progressed through Phase I and then was placed on hold in 2009 due to negotiations with the Hopi Tribe and the Arizona Department of Transportation (ADOT) regarding right-of-way (ROW) along the selected alignment. The result of these negotiations resulted in an IGA with ADOT to be within their I-40 Right Of Way (ROW) for approximately 17 miles of the overall pipeline alignment. With a pathway forward for permitting of the preferred alignment, this feasibility study is now proceeding forward towards completion

Key Points to know:

• The City of Flagstaff is designated as having an Adequate Water Supply.
• The Department of Water Resources requires the City to hydrologically prove that it has 100 years of water for its existing customers and any anticipated growth.
• In 2008 City Council approved a $2 million, contract with Jacobs Engineering to conduct a 3 phased analysis on the conceptual design, pipeline alignment, right-of-way acquisition, federal, state & tribal environmental laws that must be addressed prior to construction, and detailed capital and operations & maintenance costs for the 40-mile pipeline.
• The study will conform to U.S. Bureau of Reclamation Feasibility Study standards in the event federal cost-sharing opportunities become available.
• The existing capacity fees pay for Red Gap ranch engineering contracts through Capacity Fees. No current residents water rates fund this work. 
• Our Capacity Fees were based on the RGR Phase 2 Feasibility Study, RGR NEPA and ROW acquisition all being completed within the next ten years. The approved capacity fee does not include pump station or pipeline design costs. You can refer to the list of projects attributed to the capacity fee in the approved Rate Study.
• After the feasibility study is complete, the next step will be to evaluate funding alternatives

Connection to Council goals and objectives;

• 1) Red Gap Water Resources are needed to ensure Flagstaff has a long-term water supply for current and future needs
  2) Red gap Ranch water resources provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.
  3) Continue to implement the Flagstaff Regional Plan and focus efforts on specific plans.
   
  Status update; As mentioned, the Red Gap Ranch Pipeline Feasibility study has been stalled for several years due to alignment and right of way issues.  The scopes of work associated with the remaining tasks have been revised to meet the overall project goals, revised alignment, and new or redefined agency requirements.