Municipal Water Leader February 2018

Volume 4 Issue 2

February 2018

Mike Markus of the

Orange County

Water District

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REPLENISHING INFRASTRUCTURE INVESTMENT: MIKE MARKUS OF THE ORANGE COUNTY WATER DISTRICT

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Contents

February 2018 Volume 4, Issue 2 5 The Infrastructure Issue

By Kris Polly

26 Lower Bois d'Arc Reservoir Project Takes Major Step Forward

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Copyright Š 2018 Water Strategies LLC. Municipal Water Leader relies on the excellent contributions of a variety of natural resources professionals who provide content for the magazine. However, the views and opinions expressed by these contributors are solely those of the original contributor and do not necessarily represent or reflect the policies or positions of Municipal Water Leader magazine, its editors, or Water Strategies LLC. The acceptance and use of advertisements in Municipal Water Leader do not constitute a representation or warranty by Water Strategies LLC or Municipal Water Leader magazine regarding the products, services, claims, or companies advertised.

MuniWaterLeader

COVER PHOTO: Mike Markus of the Orange County Water District.

MUNICIPAL WATER LEADER

PHOTO COURTESY OF THE ORANGE COUNTY WATER DISTRICT.

6 Replenishing Infrastructure Investment: Mike Markus of the 30 Facilitating Flood Control in Orange County Water District Kansas City: The Turkey Creek Project 14 Building Lasting Relationships to Raise a Dam: 32 Innovative Financing Is Denver Water's Jeff Martin on Key to Improving, Upgrading, the Gross Reservoir Expansion and Investing in Our Water Infrastructure 20 McCook Reservoir:

By United States Senator Reaping the Benefits of a John Boozman Long-Term Investment

CIRCULATION: Municipal Water Leader is distributed to irrigation district managers and boards of directors in the 17 western states, U.S. Bureau of Reclamation officials, members of Congress and committee staff, and advertising sponsors.

Please send address corrections or additions to Municipal.Water.Leader@waterstrategies.com.

The Infrastructure Issue

By Kris Polly

PHOTO COURTESY OF THE ORANGE COUNTY WATER DISTRICT.

I

n February, the President introduced the administration’s infrastructure plan, which includes financing and regulatory streamlining mechanisms for water projects.

Here in Washington, DC, Congress is weighing several proposals to rehabilitate and expand the nation’s water infrastructure through existing and new programs. We welcome these proposals, but regardless of whether they move forward, water agencies continue to modernize and improve their systems. In this issue of Municipal Water Leader, we highlight successful water projects and the people building them.

This year, the Orange County Water District (OCWD) is commemorating the 10th anniversary of its Groundwater Replenishment System (GWRS), the world’s largest potable reuse project. The GWRS provides a critical source of supply to nearly 2.5 million people in Southern California. Through its commitment to infrastructure investment, OCWD has helped stabilize the region’s water supply.

OCWD is currently expanding its GWRS facility to reach its ultimate production capacity of 130 million gallons per day. We talk with OCWD General Manager Mike Markus about how to get big infrastructure projects done. He explained, “It takes a lot of stakeholder involvement early on in the project. You need the support of your elected officials to move forward. And, for the GWRS, because it was recycled water that people would ultimately be drinking, we started very early on with our public outreach.”

OCWD is not the only district thinking big. We also speak to Denver Water’s Jeff Martin, who is overseeing the expansion of Gross Reservoir. The project involves raising

MUNICIPAL WATER LEADER

Gross Dam by an additional 131 feet to increase its storage capacity to 119,000 acre‑feet.

For Denver Water, forward momentum on the project progress has been built on relationships. Mr. Martin explained “Projects like this do not move forward unless an organization has a strong, authentic commitment to the environment and is a good steward of the resources that we are entrusted with. Apart from that, a project like this requires stakeholder collaboration. We understand that what we do has an effect not only on the environment, but also on the social realm around our watershed.”

In addition, we hear from Senator John Boozman of Arkansas, who discusses recent bipartisan legislation that he has introduced to help finance water projects. He nailed the issue on the head: “Water infrastructure investment needs to be a priority. It is time for leaders across the country to be realistic about our water problems and commit to funding this vital building block.”

Finally, we highlight some great milestones in storage and flood control projects in Chicago, Kansas City, and North Texas. They are a testament to effective partnerships and innovative financing and emblematic of the strong leadership needed to renew and expand our nation’s water infrastructure. M Kris Polly is editor-in-chief of Municipal Water Leader magazine and president of Water Strategies LLC, a government relations firm he began in February 2009 for the purpose of representing and guiding water, power, and agricultural entities in their dealings with Congress, the Bureau of Reclamation, and other federal government agencies. He may be contacted at Kris.Polly@waterstrategies.com.

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Replenishing Infrastructure Investment Mike Markus of the Orange County Water District

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Kris Polly: Please describe the current state of OCWD’s storage, delivery, and treatment infrastructure.

Mike Markus: We manage a very large groundwater basin in central and northern Orange County that currently provides 75 percent of the total water demand of 2.5 million people. Here in Southern California, we only get about 14 inches of water a year. It is up to OCWD to capture and recharge as much water as we can, so we don’t overdraft our groundwater basin.

MUNICIPAL WATER LEADER

PHOTO COURTESY OF THE ORANGE COUNTY WATER DISTRICT.

Providing clean drinking water to nearly 2.5 million people in a region accustomed to less than 15 inches of precipitation annually is no small feat. Through its commitment to long-term planning and infrastructure investment, the Orange County Water District (OCWD) has done just that. OCWD wholesales groundwater to retail water agencies that serve Orange County.

This year, OCWD is commemorating the 10th anniversary of the Groundwater Replenishment System CALIFORNIA (GWRS), the world’s largest potable reuse project.

OCWD has developed a diverse supply portfolio Orange County to keep its aquifer healthy Water District and bring stability to its storage and distribution system. The primary sources of supply for the basin include Santa Ana River flows, rainfall, the GWRS, and imported water from the State Water Project and the Colorado River. The GWRS, which is a joint project of OCWD and the Orange County Sanitation District (OCSD), alone generates enough water for 850,000 residents.

OCWD General Manager Mike Markus, PE, knows the ins and outs of the GWRS. This year, Mr. Markus will be celebrating 30 years with the district. Over the span of his career, he oversaw the final design and construction of the original 70-million-gallon facility, as well as its subsequent expansion. Municipal Water Leader’s editor-in-chief, Kris Polly, spoke to Mr. Markus about the expansion of the GWRS, the value of infrastructure investment, and how to get big water projects done.

The GWRS treats wastewater through a three-step treatment process using microfiltration, reverse osmosis, and ultraviolet light.

We have different sources of supply into the groundwater basin. First, we have flows from the Santa Ana River. There is actually a river in Southern California that has water in it year round—in the upper Santa Ana watershed, treated wastewater is discharged into the river. The wastewater flows downstream and becomes a source of supply for the groundwater basin. We get around 20 percent of our supply from Santa Ana River flow.

In an average year, we get another 20 percent of our supply from incidental recharge—natural rainfall that MUNICIPAL WATER LEADER

percolates down into the groundwater basin. We also have a bit of stormwater capture. There is a large dam that is owned and operated by the U.S. Army Corps of Engineers in the Santa Ana Canyon along the Santa Ana River. We have a cooperative agreement with the Corps to store water behind the dam during the flood season to a certain level, slowly release it, and capture it further downstream. That becomes a source of supply into the basin as well. There again, it has to rain in order to capture that storm flow, which adds an additional 10 percent.

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We also purchase untreated, imported water from the Metropolitan Water District of Southern California.

Twenty percent of our supply typically comes from that.

Kris Polly: Please tell us about your recycled water system.

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MUNICIPAL WATER LEADER

PHOTO COURTESY OF THE ORANGE COUNTY WATER DISTRICT.

Mike Markus: Our recycled water system is called the Groundwater Replenishment System. The project takes treated wastewater—secondary effluent that otherwise would be discharged to the ocean—through an advanced purification process consisting of microfiltration, reverse osmosis, and ultraviolet light with hydrogen peroxide.

Once it has gone through that process, we inject about one-third of the water into a seawater barrier along the coast and pump the remainder up into our recharge basins about 17 miles away. All that water becomes a new source of supply for the groundwater basin. The project currently

produces 100 million gallons per day.

OCWD’s original 70-million-gallon-a-day facility went into operation in 2008. We completed a project to add capacity for another 30 million gallons a day in May 2015. We are in the process of expanding the facility to its ultimate capacity, which will be 130 million gallons per day. We just started the final design of that last 30-million-gallon increment earlier this year. We’ll complete the design by the end of the year. We plan to be in full operation by the first quarter of 2023.

Currently, the recycled water program provides about 30 percent of the supply of the basin. We own about 1,200 acres of land in northern Orange County, which is a heavily commercial and industrial area. We converted that land into recharge basins—essentially, large lakes for percolation. In that part of the county, the geology is such that the sands and gravel of the aquifer extend to

sediment in it. We get lower rates of percolation in the other basins that take the river water. The solids settle in the bottom of the basin and clog it.

We do have additional infrastructure along the Santa Ana River to divert flows off the river into our recharge basins. We have installed two inflatable rubber dams that are 7 feet in diameter. When inflated, they span the width of the river, which is 300 feet, diverting water into the recharge basins by gravity.

We also have equipped all those deep basins with pump stations. So, if those basins clog, we have the ability to dewater the basins, dry them out, and move the sediment with scrapers.

That helps restore the percolative capacity of the basins.

Kris Polly: There are a lot of pieces to the puzzle.

Aerial view of OCWD's Anaheim recharge basins.

the surface of the ground. So, if you dig a big hole in that ground and put water into it, the water will naturally percolate down into the basin.

The rate of percolation depends on the water source. We pump a good portion of our recycled water from Fountain Valley to along the coast through a 17-mile pipeline up to Anaheim in the northern part of the county and our recharge basins.

That water is high quality, so we get percolation rates of up to 10 feet per day.

With our other basins in that area, it is typically Santa Ana River water, so that water has a certain degree of MUNICIPAL WATER LEADER

Mike Markus: There are a lot of pieces, but they have helped build a complete supply picture with a large degree of water supply reliability. So, when it rained last year, we substantially refilled the basin. Yet, when it is really dry, we’ll overdraft the basin.

We are a nonadjudicated groundwater basin. Our board of directors determines how much pumping should occur on an annual basis. If we were in a 10-year drought, we would probably have to decrease the amount of pumping to avoid a severe overdraft.

Kris Polly: How will California’s new groundwater rules affect OCWD and its supply flexibility?

Mike Markus: We were compliant with the law before it was enacted. We actually helped write the legislation.

We don’t have to change one thing that we do under the Sustainable Groundwater Management Act. Kris Polly: How has OCWD financed the development of the GWRS, as well as its infrastructure projects in general?

Mike Markus: For the first phase of the GWRS, we were able to obtain $92 million in grant funding for a $481 million project. Of that $92 million, $67 million came from water bonds—the remainder of the project was funded with a loan from the state through its SRF [State Revolving Fund] program.

For the first expansion of the treatment plant, which was a $141 million project, we received a $1 million grant through a Proposition 84 water bond, and the rest was financed through SRF loans. For our final expansion, which is $240 million, OCWD is in the process of applying for a WIFIA [Water Infrastructure Finance and Innovation Act] loan, which will finance 49 percent of the project. We are hopeful that we can get the rest through an SRF loan. If that isn’t available, we are a triple A–rated agency, so we can borrow money at fairly low cost.

Our other infrastructure projects are financed through our rate structure.

We run a pay-go program, so we have a certain amount of funding on an annual basis. We tap that for smaller construction projects.

OCWD also has a refurbishment and replacement fund, which is a reserve fund for the replacement of assets. Through annual contributions to the fund, we are able to replace our aging infrastructure each year. We replace treatment equipment, such as microfilters and reverse osmosis membranes, on a fairly short time scale. The fund allows us to make those replacements without spiking the rates.

Kris Polly: How does the Mid-Basin Injection Project fit into your system?

Mike Markus: It is a basin management project. We are building a series of injection wells and supplying them with GWRS water from our GWRS pipeline. The reason we are injecting the water is that in that part of the basin, there is a very large impervious clay layer near the surface. You can’t just dig a hole, put the water in, and percolate it.

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You have to poke a hole through the clay layer to replenish the basin.

The reason we are injecting in that part of the basin is that there is a large pumping depression in that portion of the basin. We hope that by injecting the water directly, we’ll be able to mitigate the effects of that pumping depression.

Kris Polly: What other large infrastructure projects are planned for the future?

Mike Markus: With the final expansion, we’ll be taking 100 percent of the recycled water from OCSD. Even if we wanted to, we couldn’t expand our recycled water program beyond the final 30-million-gallon increment. We will have maximized our recycled water program and reached its end.

There are some other projects we are looking at. We do have some issues with potential seawater intrusion, so we are looking at building another seawater barrier near the LA-Orange County border.

After that, we are really in refurbishment and replacement mode—small projects here and there to help optimize our recharge capabilities and keep up our existing infrastructure.

Kris Polly: You have been successful at obtaining and leveraging grants and loans to complete major infrastructure projects. What is your advice to other water managers seeking to do the same?

Mike Markus: In the past, everyone was always looking for grant funding. It has only been recently that people have started to look at the SRF program as a substantial means of funding. That program really needs to be taken advantage of. The way the SRF is set up in California, we can get an SRF loan for half the general obligation rate. So, through the SRF we are looking at 1.8–2.2 percent loans that fund 100 percent of a project. I would advise other water agencies to look at maximizing loans available through the SRF program.

I think what we need to do is look at innovative programs at the state and federal level to lend water agencies the funding they need to build their projects at interest rates lower than the market.

PHOTOS COURTESY OF THE ORANGE COUNTY WATER DISTRICT.

Kris Polly: Beyond financing, what key lessons have you learned from projects like the GWRS and its expansion?

Mike Markus: It takes a lot of stakeholder involvement early on in the project. You need the support of your elected officials to move forward. And, for the GWRS, because it was recycled water that people would ultimately be drinking, we started very early on with our public outreach.

Ultimately, you have to be able to show the need and that the project makes sense. M

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MUNICIPAL WATER LEADER

ABOVE: Reverse osmosis membrane arrays in the GWRS. FAR LEFT: Ultraviolet light treatment arrays expose water to high-intensity ultraviolet light with hydrogen peroxide to disinfect and to destroy organic compounds that may have passed through the reverse osmosis membranes.

LEFT: The Mid-Basin Centennial Park Injection Project will inject purified water from OCWD’s GWRS into the Orange County Groundwater basin.

MUNICIPAL WATER LEADER

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Gross Dam sits 340 feet above the streambed of South Boulder Creek.

Building Lasting Relationships to Raise a Dam Denver Water’s Jeff Martin on the Gross Reservoir Expansion

John Crotty: Please provide some background on the expansion project and the needs the project will meet.

Jeff Martin: The dam’s original designers planned to raise the dam to keep up with water demands in two phases: the first adding an additional 40 feet, and the second, 80 feet.

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With that in mind, we are really just building off that original vision.

As we look at our system now, we need to pursue this expansion for a couple of reasons. One is increased demand due to Colorado’s growing population. The other is the need to improve system resilience. This is especially true for Gross because of the two watersheds that provide water to Denver.

Denver Water’s South System, which has been in operation for over 100 years, accounts for about 90 percent of the water we manage. With 90 percent of our water flowing through one corridor and the remaining 10 percent through our North System corridor, we began assessing what we would do if an event were to occur in the future that would exploit this imbalance. For example, Colorado’s largest wildfire, the 2002 Hayman Fire, caused a lot of destruction to the South System watershed. We look at events like this and try to make sure our systems are balanced so that we have the right resiliency to move forward.

We started the expansion right after the Hayman Fire.

That year, a drought, in addition to the fire, caused us to almost run out of water on the North System, stressing its MUNICIPAL WATER LEADER

PHOTO COURTESY OF DENVER WATER.

Gross Reservoir is a critical component in Denver Water’s North System. Completed in 1955, the original designers had envisioned the reservoir’s expansion as a way to keep up with demand. The current reservoir holds 42,000 acre-feet of water, impounded by a 340-foot concrete dam. Denver Water is in the process of raising Gross Dam by an additional 131 feet, making it 471 feet tall and increasing its storage capacity to 119,000 acre-feet.

Municipal Water Leader’s senior writer, John Crotty, spoke with Gross Reservoir Expansion Project Manager Jeff Martin about the logistics of storage expansion, the need for collaboration among stakeholders on the west and east slopes of the Rockies, and how process is as important as results when tackling big water projects.

day-to-day operation. Although we had already identified the issue in our integrated resource plans, the problem really came to the forefront in 2002. Right after that, we started the NEPA [National Environmental Policy Act] process on the Gross Dam expansion.

We started the NEPA process in 2003, and it took 14 years to complete. We finally received our record of the decision in 2017 and obtained our 404 permit. Going through the NEPA process took a lot of patience and perseverance. We are really proud of the process and the environmental impact evaluation that took place.

In the beginning, the organization went into this process uncertain that the full expansion was going to be the final outcome. In fact, at one point we thought that two dams could be the solution. Through the process itself, it became evident that the larger expansion was the preferred choice due to its lower environmental impact.

John Crotty: What are the next steps?

Jeff Martin: Two federal actions have to take place. The first MUNICIPAL WATER LEADER

is the U.S. Army Corps of Engineers 404-permitting process, which is complete. The second is a license amendment from the Federal Energy Regulatory Commission, which is required to give us approval to raise the dam.

With the 404-permitting process, we have had a big cultural shift. This process has taught us as an organization the value of cooperation and collaboration, which resulted in our accepting permitting conditions that will not just offset the environmental impacts but will result in a net environmental benefit for Colorado. Now, we are moving toward a culture of compliance to ensure that we are adhering to all the requirements within the permit itself.

The next steps are working toward some of the mitigation projects that were identified in the 404 permit.

Additionally, we are in the final stages of design engineering, which is exciting for Denver Water. We have done a lot of preliminary studies to have a better idea of where we are going, and we now have the most qualified concrete dam designers on the team. Stantec is the engineering company doing that.

We want to be done by 2025. That means by 2019, we

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The dam face of Gross Dam.

are going to start some site development work. We aim to start construction activities in 2021.

John Crotty: What are some of the mitigation projects that were identified in the permit?

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MUNICIPAL WATER LEADER

PHOTOS COURTESY OF DENVER WATER.

Jeff Martin: There are so many to choose from, it’s hard to describe just a few. One example is our conveyance of more than 500 acres of diverse forest and wetland habitat to the U.S. Forest Service. We compensated for 2.5 acres of wetlands that will be inundated in the larger reservoir.

We are also working on two stream restoration projects: the Williams Fork River, which is part of the Fraser and Upper Colorado River watersheds, and South Boulder Creek, on which Gross Dam sits. Our environmental reviews

identified that the aquatic habitat in those streams has diminished mostly because the streams have grown wide instead of deep. These projects will fix that.

As we moved forward with this project, we entered into the Colorado River Cooperative Agreement with other stakeholders and water entities on both the west and east slopes of the Rockies. The agreement identified how we would move forward as responsive organizations in a collaborative environment that would help us look out for statewide interests and all the users on the Colorado River.

From that agreement came a whole lot of projects and partnerships on the west slope, all together valued at more than $20 million.

We have also partnered with a couple of organizations on the South Boulder Creek watershed to create

Jeff Martin at Gross Dam.

throughout this process. Over the 14 years, we have really set forth a vision through the Colorado River Cooperative Agreement. That agreement signified a turning point for Denver Water to a belief that when we are working on a project such as this, it is not the end result that matters but how we get to the end result—the partnerships we make along the way.

It’s been a big change for Denver Water as to how we do business. I think it’s the only way, in the end, that we were going to move forward on a project of this scale. an environmental pool that provides an additional 5,000 acre-feet of storage that the cities of Boulder and Lafayette will let out of our dam during low flow periods to ensure that we keep some of the stream flows up in South Boulder Creek. Historically, the South Boulder Creek watershed can have low flows, affecting fisheries and aquatic resources in the late summer and fall months.

Through this process, we are going to have available water to use during low-flow periods.

John Crotty: Did the partnerships require a change in organizational approach as the permitting process moved forward?

Jeff Martin: Yes. Our organization has definitely evolved MUNICIPAL WATER LEADER

John Crotty: Given the complexity of all the partnerships and the permitting process, how do you finance a project?

Jeff Martin: There are a few tools we use to do that. First, let me explain how Denver Water works. We collect revenue through selling water, new tap fees, and the sale of hydropower, so we are not tax revenue based.

Denver Water is celebrating its formal 100th anniversary this year—the people of Denver voted to take ownership of the water utility in 1918. The infrastructure is aging and needs improvement, so we have a rather large capital improvement plan already in place to ensure we can provide a reliable water supply to our customers. In addition, we have some projects, such as the Gross Dam expansion, that address the future needs of Denver Water. We can adjust

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Gross Reservoir has a surface area of 440 acres for recreational use.

PHOTO COURTESY OF DENVER WATER.

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MUNICIPAL WATER LEADER

our rate schedule to be able to pay for these projects, as well as use other tools, such as bonding, to cover a lot of our overall capital programs.

Denver Water has a triple-A bond rating, which is the highest bond rating for a utility. We earned this rating largely because we have a really good track record of doing what we say we will do. That really helps our bonding effort.

The primary funding source will be a 30-year bond, which will level out the cost of the project but also will allow our future customers to buy in to the project as well. It does not just put the burden on our existing customers to provide a future benefit. The city of Arvada is also a project participant and will be contributing to the costs.

John Crotty: How do you explain the value and the investment of a project like this to your customer base?

Jeff Martin: A lot of our customer base has lived through droughts and periods of water restriction. Living in this area, the culture is pretty understanding that water resources aren’t a given in the West. Denver Water is a leader in educating our customers to understand that you should use only what you need and that we do not have an endless supply of resources.

One of the ways we have been a leader in this effort is by having one of the only recycled water treatment plants at a water utility. Although Denver Water is separate from the city’s wastewater treatment facility, our recycling plant takes water that has already been cleaned at the wastewater plant, so it is safe to reintroduce back into the environment, and cleans it one more time. The resulting recycled water is delivered to our customers for industrial purposes and irrigation. We really work to create a culture that understands that water is a resource that deserves to be cherished and valued.

John Crotty: Finally, what advice do you have for other managers interested in moving forward on a storage project like this?

Jeff Martin: Projects like this do not move forward unless an organization has a strong, authentic commitment to the environment and is a good steward of the resources that we are entrusted with. Apart from that, a project like this requires stakeholder collaboration. We understand that what we do has an effect not only on the environment, but also on the social realm around our watershed. As difficult as it was, our collaboration efforts have been beneficial not only for this project, but also for future relations and how we work with stakeholders throughout our region. We’re proud that this project will result in a net environmental benefit for the state.

At the end of the day, large infrastructure projects like this will not be judged on if and when they get done, but on how they are done. M MUNICIPAL WATER LEADER

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PHOTO COURTESY OF METROPOLITAN WATER RECLAMATION DISTRICT.

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McCook Reservoir

Reaping the Benefits of a Long-Term Investment In early January, a winter rain brought an inch of precipitation to Chicago’s already-snow-covered yards and streets. The otherwise unremarkable rain marked an important stage in the Metropolitan Water Reclamation District of Greater Chicago’s (MWRD) Tunnel and Reservoir Plan (TARP): For the first time, stormwater entered MWRD’s McCook Reservoir on Chicago’s southwestern side.

Stage I of the McCook Reservoir.

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The McCook Reservoir took on 263 million gallons of used water during the first fill. The gates were opened at 9:24 a.m., and moments later, the water began rushing into the reservoir.

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Stickney Water Reclamation Plant, the largest wastewater treatment facility in the world.

MWRD Managing Civil Engineer Kevin Fitzpatrick explained, “This project will capture and store combined sewer overflows and help reduce pollution and flooding. It is about preventing polluted water from backing up into basements and dumping into area rivers during a storm event.”

Site Prep and Construction First, MWRD prepared the site for excavation.

Mr. Fitzpatrick, who has been a part of the McCook project since construction started, explained, “We were going 300 feet below ground and first had to remove almost 10 million cubic yards of overburden before the site could be mined.”

Next, MWRD negotiated a mining agreement with a local quarry operator. The agreement set the parameters for the operator to create what was to become the reservoir: the boundaries, the depth, the walls, the ramps, and the rate of mining (in this case, the rate at which they sell stone).

Given those requirements, MWRD covers the costs above and beyond the parameters of a normal mining project in order to bring the desired size and shape of the reservoir. For mining and selling the rock, the operator pays MWRD a small royalty. The operator started mining the stone in 2008.

MUNICIPAL WATER LEADER

PHOTOS COURTESY OF METROPOLITAN WATER RECLAMATION DISTRICT.

The Plan McCook Reservoir is more than 45 years in the making as a critical component of the TARP, MWRD’s long-term combined sewer overflow control plan. Phase 1 of the plan involved constructing 109 miles of deep tunnels and more than 400 drop shafts to capture combined sewer overflow near the Des Plaines and Chicago Rivers before it gets into the waterways. Phase 2 construction focused on the creation of three reservoirs—McCook is the last of those reservoirs.

MWRD began construction on the 3.5-billion-gallon (10,741 acre-feet) reservoir in 1999. The project involved excavating the site and connecting the existing deep tunnel system to the reservoir with subtunnels and gate structures.

Two tunnels enter the reservoir, and a third takes the water out to a pump station.

The 33-foot-diameter mainstream tunnel extends from Wilmette, a northern suburb of Chicago, along the north branch of the Chicago River and down to the southwestern side of the city, under the Sanitary and Ship Canal and the Chicago River, to the reservoir location near Bedford Park.

The other main tunnel, also 33 feet in diameter, follows the Des Plaines River from the town of Des Plaines on the northwestern side of the city down to the reservoir site.

The third tunnel drains the reservoir and connects it to MWRD’s existing deep tunnel pump station, so the polluted storm overflow can later be pumped back to the

McCook Reservoir is situated between the Des Plaines River and Chicago Sanitary and Ship Canal on the southwestern side of Chicago.

MWRD staged the construction of the reservoir to bring some of the benefits online earlier. The first stage was completely mined 2 years ago and now is available to capture 3.5 billion gallons of water, or 35 percent of the total planned volume. The reservoir held this amount for the first time on February 19–20.

According to Mr. Fitzpatrick, “That is what we put online at the end of last year. While they are still going to be mining the rest, we’ll be seeing substantial benefits from the portion that they finished. They will be digging adjacent to the current site. Two tunnels will eventually connect the two holes so that they will fill and drain together.”

Making It Water Tight Sealing the reservoir was critical to its function. In partnership with the U.S. Army Corps of Engineers, MWRD constructed a double-row grout curtain around McCook—two rings of pressure-grouted holes spaced 5 feet apart around the entire 3-mile perimeter. The holes go down to an impermeable layer of shale about 350 feet below the reservoir. The grout is forced into the fractures in the rock, sealing up any cracks surrounding the reservoir.

The reservoir’s location between the Des Plaines River and the Chicago Sanitary and Ship Canal also posed a challenge. Mr. Fitzpatrick said, “We didn’t want groundwater migrating from the rivers into the reservoir MUNICIPAL WATER LEADER

through the dirt above the rock we grouted. To prevent that, MWRD constructed a slurry wall, which is just a 3-foot trench filled with bentonite clay material, around the perimeter of the reservoir.”

Financing MWRD projects the total cost of McCook Reservoir to be around $1 billion. Although much of the project is covered under a cost-share agreement between the MWRD and the Corps, MWRD had to cover all the costs for certain construction activities outside the agreement with the Corps, including the overburden removal and mining. Given the scope of the long-term project with a life expectancy of 100 years, MWRD was able to take out bonds at a very low interest rate to cover its share of the costs.

A Regional Solution Mr. Fitzpatrick stressed the true value of McCook Reservoir. “The benefit-cost ratio on this project is above 3.

It is a project built to last 100 or more years, serving a 250-square-mile area of Chicago and its suburbs and benefiting more than 3 million people. The project will have tremendous effect on our region. It’s projected that more than $140 million per year in flooding and pollution reduction benefits will be realized when the project is completed.” M

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Lower Bois d’Arc Reservoir Project Takes Major Step Forward

North Texas Municipal Water District

TEXAS

Earlier this month, after more than 15 years of planning, the North Texas Municipal Water District (NTMWD) received an approved 404 permit from the U.S. Army Corps of Engineers to construct Lower Bois d’Arc Creek Reservoir, a 367,609-acre-foot surface water reservoir that will serve 10 counties in north Texas.

Background In 2002, NTMWD recognized that its existing water sources were insufficient to sustain the region’s growing population, which is expected to double by 2060. For NTMWD, the solution was the construction of Lower Bois d’Arc Creek Reservoir. The more than $1 billion project will create the first new reservoir in Texas in a quarter of a century, which will serve 1.7 million people.

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habitat along an approximately 42-mile corridor adjacent to and connected by Bois d’Arc Creek.

Financing NTMWD has spent $135 million so far on planning, permitting, engineering, and land acquisition for Lower Bois d’Arc Creek Reservoir and estimates the total cost at more than MUNICIPAL WATER LEADER

PHOTO COURTESY OF NORTH TEXAS MUNICIPAL WATER DISTRICT.

The Permit The Corps section 404 permit program regulates the placement of material into a water of the United States—in this case, Bois d’Arc Creek—under the Clean Water Act. The permitting process requires the Corps to complete a thorough analysis of the effects of a project on the environment and evaluate potential project alternatives. In the case of

Lower Bois d’Arc Creek Reservoir, the potential alternatives evaluated included, but were not limited to, transportation of water from existing reservoirs to the development of new groundwater supplies to desalination.

In the end, the Corps’ record of decision supported NTMWD’s plan to construct the reservoir—with some conditions.

“With the 404 permit issued, we are ready to start work on this critical water project for our region. Reservoirs are an absolute necessity in the state of Texas, and most are man-made,” said Tom Kula, NTMWD executive director.

Special permit conditions include mitigation for affected wetlands, streams, and other waters, as well as the prevention of unexpected degradation to the environment surrounding the project. In light of those conditions, NTMWD purchased the 14,960-acre Riverby Ranch, located downstream from Lower Bois d’Arc Creek Reservoir, for mitigation purposes, and it is also acquiring 1,900 acres upstream of Lower Bois d’Arc Creek Reservoir for mitigation.

All in all, NTMWD projects that the reservoir and its mitigation efforts will protect in perpetuity approximately 50,170 acres of aquatic and terrestrial

General Manager Tom Kula, surrounded by the North Texas Municipal Water District board of directors, signing the Lower Bois D'Arc Reservoir 404 permit.

$1.2 billion. NTMWD has secured most of the funding via a low-interest loan from the Texas Water Development Board’s State Water Implementation Fund for Texas program, which is expected to save the district $200 million in interest.

Breaking Ground Now that the permitting and funding are approved, NTMWD is moving quickly to start construction this spring. NTMWD is aiming to complete construction of the MUNICIPAL WATER LEADER

reservoir and related projects by 2022. Once operational, the reservoir is expected to yield up to 108 million gallons of water a day for residents and businesses in NTMWD’s fast-growing service area, including Fannin County.

“This has been a tremendous team effort, and we appreciate the support of all involved in the process,” added Mr. Kula. “It is a great example of the value and importance of regional water planning and collaboration among communities for the shared need of an essential, long-term water supply.” M

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Facilitating Flood Control in Kansas City:

The placement of concrete for the last 70 feet of dual 10' x 9' box culverts at the Turkey Creek Project.

The construction of this project will help reduce the risk of floods in this part of the Kansas City area.

The Turkey Creek Project

T

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PHOTO COURTESY OF U.S. ARMY CORPS OF ENGINEERS.

wenty years in the making, Kansas City’s Turkey Creek Flood Control Project is marking the beginning of its last phase this year.

The project addresses a flood-prone area adjacent to Turkey Creek, a tributary of the Kansas River that runs through the southwestern side of the city and Wyondotte County near Interstate 35 and Southwest Boulevard. Every 3–5 years, the businesses and homes in the creek’s corridor flood—in 1998, a flood overtopped Interstate 35 and caused millions of dollars in damage.

Having identified the flooding issues in the corridor, Kansas City, Missouri, and the Unified Government of Wyandotte County/Kansas City, Kansas, partnered with the U.S. Army Corps of Engineers to study and remedy deficiencies along the creek. That partnership has already resulted in the widening of the Turkey Creek channel, tunnel modifications, and the relocation of bridges.

This final phase involves the construction of intercepts on the northern end of the creek’s corridor that are intended to move stormwater down creek and away from residences, providing drainage sufficient to address a 15-year storm.

Each partner brought money to the table to get this final phase in motion. Kansas City issued $7.3 million in general obligation bonds, the unified government contribution neared $3 million, and the Corps set forth $21.5 million in its latest work plan to cover the 65 percent federal cost share. ”This project represents the culmination of years of a successful partnership among the unified government; Kansas City, Missouri; and the Corps. The constructed channel has already saved the communities from severe damages, and we look forward to completion of this final phase,” said Kansas City Water Director Terry Leeds. M MUNICIPAL WATER LEADER

MUNICIPAL WATER LEADER

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Innovative Financing Is Key to Improving, Upgrading, and Investing in Our Water Infrastructure

By United States Senator John Boozman

Access to safe, clean water is critical to the livelihood of every American. It’s important that we continue to prioritize infrastructure improvements in order to provide citizens with reliable and safe drinking water and effective wastewater and stormwater treatment.

As a member of the Senate Environment and Public United States Senator John Boozman (R-AR).

Works Committee, I participated in the two hearings held multiple water infrastructure projects. This legislation this year on the needs and challenges of our nation’s water combines the best aspects of state revolving funds (SRFs) infrastructure. As we work to craft and pass a new Water with the proven leveraging power of the Water Infrastructure Resources Development Act, we are examining the state of and Innovation Act (WIFIA) to make the funding process our water infrastructure nationwide. easier and more affordable for states to As you’re likely well aware, the American meet their underserved or unmet water Society of Civil Engineers gave our infrastructure needs. nation’s drinking water infrastructure a D The SRF WIN Act will create a significant in its 2017 Infrastructure Report Card. pot of money within the WIFIA program The mark reflects the damage our aging that is available only to SRFs. The fiscal infrastructure has on the water supply. An year 2017 appropriation of $25 million estimated 240,000 water main breaks each leveraged $1.5 billion in direct loans for water year waste more than 2 trillion gallons of infrastructure. This legislation will be a 5-year drinking water. The American Water Works bill that authorizes $200 million each year, for Association estimates that $1 trillion is a total of $1 billion over 5 years. necessary to maintain and expand service to Our legislation would dramatically meet our needs over the next 25 years. increase the availability of SRF funding —JOHN BOOZMAN The challenge is that we face an over to communities across the nation while $500 billion shortfall in funding to repair substantially reducing the time and related costs for completing our aging water infrastructure. This is a national emergency. projects. This legislation allows SRFs to bundle their priority Investment in our water infrastructure is crucial to ensuring drinking water and wastewater projects together and make a that Americans have access to clean, safe, and reliable single loan request, saving the state the $100,000 application drinking water. We need a cost-effective plan that will help fee per project. This would allow thousands of vetted water address the backlog of long-awaited local infrastructure and wastewater projects to receive funding without the U.S. projects. That’s why I’m leading a bipartisan effort to update Environmental Protection Agency (EPA) having to process as how we invest in water infrastructure. many applications. For those projects found to be unqualified, The Securing Required Funding for Water Infrastructure the EPA will provide information about what needs to be done Now (SRF WIN) Act seeks to modernize water to meet the requirements. infrastructure investment by empowering states to finance

Investment in our water infrastructure is crucial to ensuring that Americans have access to clean, safe, and reliable drinking water.

MUNICIPAL WATER LEADER

PHOTOS COURTESY OF WIKIMEDIA COMMONS.

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The Big Dam Bridge in North Little Rock, Arkansas.

In line with the administration’s infrastructure priorities, this bill is an innovative approach to helping communities of all sizes and in every state secure loans so they can improve their aging infrastructure. For communities that have not typically qualified for funding in the past, this will be an important tool to finance water infrastructure improvements.

All 50 SRFs have a triple-A bond rating, so they have a very low risk of default. This, combined with the leveraging power of WIFIA, gives the SRF WIN Act the leveraging capacity of an incredible 100 to 1, according to technical assistance provided by the EPA’s Office of Water.

Arkansas National Resources Commission Executive Director Bruce Holland expressed the organization’s support for the SRF WIN Act because it builds on the SRF investment, calling it “a significant addition to the ‘SRF tool box’ of financing options.”

Simply put, the SRF WIN Act would represent a critical component to future water infrastructure financing.

This is not a hand-out. The SRF WIN Act provides communities with the tools they need to help themselves.

The low-cost loan available from the federal government will be paid back over 35 years. With more than three decades to pay back their loan, rate payers will avoid harm and not see massive rate spikes. Instead of waiting decades for funding, communities will be able to invest in their crumbling water infrastructure now.

MUNICIPAL WATER LEADER

The need to improve our aging water infrastructure is reflected in the broad, bipartisan Senate support for this bill. I was proud to introduce this legislation with Senators Cory Booker (D-NJ), Jim Inhofe (R-OK), and Dianne Feinstein (D-CA). We have gained momentum with additional co-sponsors, including the Chairman of the Appropriations Committee Thad Cochran (R-MS) and Chairman of the Environment and Public Works Committee John Barrasso (R-WY).

This is not only a bipartisan effort, but a bicameral one as well. The SRF WIN Act was introduced in the House of Representatives by Congressmen John Katko (R-NY) and Earl Blumenauer (D-OR).

The SRF WIN Act has strong support from rural and municipal water and wastewater organizations. This landmark legislation also has the support of our nation’s leading construction, engineering, labor, and manufacturing organizations.

Water infrastructure investment needs to be a priority.

It is time for leaders across the country to be realistic about our water problems and commit to funding this vital building block. Innovative financing is key to improving, upgrading, and investing in our water infrastructure. The SRF WIN Act is another great tool that will help advance this goal. M

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Upcoming Events

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waterstrategies.com/municipal-water-leader Anaheim Lake. PHOTO COURTESY OF ORANGE COUNTY WATER DISTRICT.