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					Council Communication
                    Talent Ashland Phoenix Intertie Pipeline Update on
               Preliminary Engineering and Future Water Line Construction
Meeting Date:            January 15, 2008                                                                            Primary Staff Contact:                                                            Jim Olson 552-2412
Department:              PW Engineering / Water                                                                      E-Mail:                                                                           olsonj@ashland.or.us
Secondary Dept.:         Finance                                                                                     Secondary Contact:                                                                Paula Brown 488-5587
Approval:                Martha Bennett                                                                              Estimated Time:                                                                   20 minutes


Question:
Does Council approve the staff recommendation on the next steps and the proposed timing for the City
to connect to the Talent Ashland Phoenix (TAP) Intertie pipeline?

Staff Recommendation:
Staff recommends continuing to pursue the TAP project as shown on the following schedule. This will
initiate final design of the TAP Pipeline beginning April 2008, with construction starting as early as
April 2010 (FY10 and FY11 construction years). This schedule is slightly modified from the schedule
that was presented to Council on April 2, 2004. The timeframe for the pre-design and the reservoir
siting were extended. The TAP reservoir design and construction have changed with the final
recommendation to build a second reservoir at the Crowson site, negating the need for a separate TAP
clear well/reservoir. The need for the reservoir at the Crowson site does not impact the immediate
operation of the TAP Pipeline, but is necessary for the City’s overall water distribution and fire flow
functions.

One of the first steps of the TAP final design, staff recommends defining the specific location and
purchasing the site for the booster pump station as recommended in Carollo Engineer’s Technical
Memorandum 4. The booster pump station is a critical piece of the operation of the final TAP Pipeline
to bring water to Ashland.

TAP Pre-Design
TAP Reservoir Siting /
Land Evaluation
TAP Final Design and
Property Acquisition
TAP Pipeline/System
Construction
Crowson II Reservoir
Design
Crowson II Reservoir
Construction
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Background:
Based on the Council’s decision in December 1998, the City participated with the cities of Talent and
Phoenix and with the Medford Water Commission for the design and construction of the 24-inch TAP
water pipeline construction to the City of Talent. In addition to the initial construction, Council has
asked staff to complete the following:
   1. Complete pre-design for the future extension of the TAP Pipeline – done
   2. Continue with an emphasis on conservation programs in an effort to meet the goals for 20%
       peak day summer time reductions – ongoing and generally successful
   3. Continue with negotiations for other water supply options including:
       • Purchase Lost Creek Water Rights – 75% complete (scheduled to purchase the
            remaining 25% in FY09)
       • Review the options of exchanging the City’s Talent Irrigation District (TID) water rights
            from the City’s “Imperatrice Property” for beneficial use within the City – ongoing efforts
            that will continue with the City’s “Right Water for the Right Use” emphasis
       • Begin discussions with TID and BOR for additional municipal water rights – ongoing
            efforts with initial success in temporary water right purchases the past two years

Carollo Engineers has completed the “TAP Preliminary Engineering Technical Memorandum No. 4,”
which completes their requirements. The three critical recommendations are as follows:
       Two alternative routes were identified for the portion of the pipeline route through the City of
       Talent; along Highway 99 or along Talent Avenue. Both have conflicts and concerns and
       depending on the timing of the construction portion of the project, one may be preferable over
       the other. Carollo recommends that the City complete a cost analysis and feasibility evaluation
       of the two alternatives to select a final route during the final design phase, once the planned
       construction schedule is known due to the potential impacts of improvements through the City
       of Talent. Staff recommends an early start to the final design to solidify agreements and
       specific locations based on the timing of construction.
       Carollo recommends that the City move forward aggressively to acquire a property for the
       pump station due to the availability of suitable properties. As this again impacts timing, staff
       recommends the Council allow this to happen as soon a possible to solidify property purchases.
       It is feasible to connect the TAP pipeline extension directly to the Ashland distribution system
       at a flow rate of 1.5 mgd under normal operating conditions, avoiding additional cost for
       constructing a designated TAP reservoir. It the City wishes to use the TAP pipeline as an
       emergency supply (up to 3 mgd), it is recommended that further modeling be conducted to
       evaluate system performance under such a scenario. Additional flows during an emergency
       scenario may require improvements to the City’s distribution system and/or changes to the
       design criteria for the pump station. As previously stated, elimination of a separate TAP
       reservoir does not preclude the need for additional storage within the City’s system to meet
       other system storage requirements (see Addendum to TM No. 2 and the City’s CIP for the
       planned “Crowson II” distribution reservoir).

In addition to the specific TAP Pipeline preliminary engineering work, there has been significant work
within the water fund on modeling the distribution system and in developing comprehensive water
plant improvements. Both have an impact on the City’s overall water distribution system currently and

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in the future. As Carollo’s TM 4 describes, there are distribution and fire flow deficiencies that are
being addressed separately with the design and construction of the 2.5 MG Crowson II reservoir. This
plan was previously introduced to Council during last year’s (FY 2007-08) budget process.

The TAP Pipeline will enter the City’s system and will utilize the Granite Street reservoir for
operational storage and system integration. As such, there is no need for a separate TAP Pipeline
reservoir or clear well. However, to ensure complete City wide emergency use there would be
additional system and distribution piping to interconnect the TAP Pipeline to the Crowson reservoir
which feeds the rest of the City. This is not a part of the initial TAP Pipeline project, but will be
considered in the future.

TAP Costs: Construction costs have sharply increased over the last three years. The following
summarizes the anticipated costs of the project (updated November 2007) and they will be updated
again through the final engineering design process:
                                                                  Paid             Future Costs
       TAP Pipeline Construction Medford to Talent (2002)      $1,450,000
       Purchase Water Rights (2002)                               931,000
       Engineering
              Preliminary (2004-07)                                75,000
              Final Design and Permitting (proposed 2008-09)                       $1,580,000            now
       Future Connection of TAP from Talent to Ashland (proposed 2010-12)           6,100,000
       Future SDCs to Medford Water Commission (assumed)                            2,000,000

       Future Ashland Pump Station (proposed 2008-09)                               1,800,000            now
       Future Ashland Distribution System Upgrades                                    500,000
       Additional Lost Creek Water (increased costs)                                  600,000
                             TOTAL Costs:                                         $15,036,000
                             Paid to date:                          $2,456,000
                             Total Future Costs:                                  $12,580,000

       These future costs could be funded through a combination of revenue sources including
              Water SDCs             approximately 75% of TAP Pipeline,
                                     & 100% of the purchased water rights       $9,585,000
              Water Rates            approximately                               2,995,000

       Bonds, loans or other initial funding will likely be required to cover the collection of SDCs.


Related City Policies:
Budget and CIP
Water Master Plans and Comprehensive Water Supply Plan
TAP Preliminary Engineering TM 1-4 (Carollo)




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Council Options:
Staff is presenting three options for Council consideration:

1. Move forward with staff’s recommendations to secure a site for the booster pump station in Talent.
   Staff will bring a design and construction schedule to Council during the budget process that
   reflects the following:
           Booster Pump Station Site Acquisition      April 2008
           Final Design & Cost Benefit Analysis       July 2008 – June 2009
           Permitting                                 June 2009 – September 2009
           TAP Intertie Construction                  April 2010 – June 2011

2. Direct staff move forward with the first three steps:
           Booster Pump Station Site Acquisition       April 2008
           Final Design & Cost Benefit Analysis        July 2008 – June 2009
           Permitting                                  June 2009 – September 2009
           TAP Intertie Construction                   Delay timing determination until completion of
                                                       final design and cost benefit analysis. Future
                                                       Council decision.

3. Redirect staff to move forward only with acquisition of the booster pump station site and delay any
   final design on the TAP project until July 2013 to meet the prior explicit needs for the TAP intertie
   connection of 2016.

Potential Motions:
   1. Council moves approval of the current schedule and directs staff to proceed as follows:
      • Booster Pump Station Site Acquisition      April 2008
      • Final Design & Cost Benefit Analysis       July 2008 – June 2009
      • Permitting                                 June 2009 – September 2009
      • TAP Intertie Construction                  April 2010 – June 2011

   2. Council moves approval of the current schedule and directs staff to proceed with the first three
      steps:
          Booster Pump Station Site Acquisition    April 2008
          Final Design & Cost Benefit Analysis     July 2008 – June 2009
          Permitting                               June 2009 – September 2009
          TAP Intertie Construction                Delay timing determination until completion of
                                                   final design and cost benefit analysis. Future
                                                   Council decision.

   3. Council moves to redirect staff to move forward only with acquisition of the booster pump
      station site and delay any final design on the TAP project until July 2013 to meet the prior
      explicit needs for the TAP intertie connection of 2016.

Attachments:
TAP Alternative Routing Map
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