Water Conveyance_Construction Contracts.pdf

Memorandum

To: Glyn Roberts

From: Wesley Hipke, IWRB Recharge Program Manager

Date: June 2, 2023

Re: Department of Purchasing Policy Directive/Exemption related to the IWRB's Managed Recharge Program

The Idaho Department of Water Resources (IDWR), on behalf ofthe Idaho Water Resource Board (IWRB), is requesting from the Department of Purchasing (DOP) a Policy Directive/Exemption, or an official determination that such Policy Directive/Exemption is otherwise unnecessary, to allow for the IWRB's development of the Eastern Snake Plain Aquifer (ESPA) Managed Recharge Program (Program) that benefits the State of Idaho. The Program works with partners, generally irrigation districts and canal companies, to develop and operate activities utilizing their canal systems for conducting and/or delivering water for managed recharge, along with the execution of technical/engineering studies or construction of projects supporting or developing managed recharge capacity.

IDWR would like clarification as to whether the IWRB's development and running of the ESPA Program falls under competitive procurement rules or if a separate category such as sub-grants would apply. If the ESPA Program is under competitive procurement rules, IDWR believes the ESPA Program may still be exempt from competitive procurement as it would be impractical, unreasonable, and disadvantageous to the State to attempt the solicitation of other contractors to perform the required services.

Background

The Eastern Snake Plain Aquifer (ESPA) has been losing approximately 200,000 acre-feet annually from aquifer storage since the 1950s resulting in declining ground water levels and resultant spring flows from the aquifer. The declining ground water levels and surface water flows have led to numerous, ongoing conjunctive administration water use conflicts. Similar issues are occurring in aquifers throughout Idaho including the Wood River, Mountain Home, Treasure Valley, Palouse Basin, and Rathdrum Prairie aquifers.

The Idaho Water Resource Board (IWRB) has been tasked with the operation and development of the Program, a major component of the ESPA Comprehensive Aquifer Management Plan (CAMP). The ESPA CAMP was developed through a collaborative process, adopted by the IWRB, and approved by the 2009 Idaho Legislature and Governor through House Bill 264. The Idaho Legislature further refined the goals for the ESPA Program in 2016 through Senate Concurrent Resolution No. 136. This resolution directs the IWRB to develop a managed recharge program within the ESPA that has the capacity and infrastructure to recharge 250,000 af/year on average on or before December 31, 2024.

The intent of the ESPA Program is to add water to the aquifer that doesn't occur naturally or through ongoing practices such as irrigation of crops. Managed recharge is accomplished by conveying water through un-lined irrigation canals and in dedicated constructed recharge sites. Collaboration with canal operators provides the IWRB access to infrastructure throughout the ESPA to use the canals to conduct managed recharge outside of the irrigation season and deliver water to "off-canal" dedicated managed recharge sites that can be used throughout the year if water is available.

A key factor to the ESPA Program is the extreme variability in the volume, location, and timing of the water available for managed recharge. In the western portion of the ESPA a base amount of water (150,000 acre-feet) is generally available through each winter. During "wetter" years, generally in the spring, significant volumes of water can be available for managed recharge (1 million acre-feet to over 3 million acre-feet).

Historically, less than fifty percent of the years are "wetter". This requires a versatile managed recharge system, with significant recharge capacity to optimize the water available in wet years to compensate for the years where only the base amount is available.

Program Implementation: Infrastructure Improvements & Conveyance Contracts

Implementation of the ESPA program has relied upon developing partnerships with existing canal systems to provide the basic infrastructure to utilize the IWRB's natural flow recharge water rights. These canal systems are owned and operated by private canal companies and irrigation districts (quasi-governmental entities). It is therefore necessary to contract directly with these entities to convey recharge water when it is available.

To operate and develop the ESPA Program requires upgrading the existing canal systems to increase delivery capacity, develop monitoring systems, improve structural integrity, and construction of "off-canal" recharge capacity through recharge basins and/or recharge wells. In most cases investigations and studies are required to determine the specific canal improvements required or characterization of potential managed recharge sites to determine the most cost-effective alternatives for operating and developing the ESPA Program. In most cases the IWRB contracts directly with the canal companies and irrigation districts to complete, or hire the necessary consultants to perform, the studies and construction activities. In general, the studies involve engineering and geologic investigation, flow monitoring, and other preparatory activities involved in determining suitability of potential recharge sites. Construction and facilities modification include a wide range of actions such as road work, canal modification or reconstruction, check dams, bypass channels for hydropower plants, modifications to prevent icing at headgates, etc.

The IWRB will also contract with canal companies to deliver or convey water for aquifer recharge through their canals. The recharge water is provided under a water right owned by the IWRB. However, the IWRB does not own the canals or infrastructure to actually transport the water for recharge. As such, the IWRB is contracting with the canal companies directly to use the canal systems and to perform the duties necessary to divert and convey the water.

Justification for Exemption

Managed aquifer recharge is an ongoing and long-term water management program with current operational requirements along with developing increased managed recharge capacity. The partnerships developed through the Program have allowed the IWRB to develop one of the largest Managed Recharge Programs in the United States. The Program to date has made significant improvements to the aquifer and related surface water flows, however, the program has not met the goals set by the Legislature. Maintaining and developing the partnerships with the canal systems will allow the IWRB to continue the operation and expansion of the ESPA Program.

The operations and development of the ESPA Program does not seem to fit into the competitive procurement process. Minimally, it is extremely impractical, unreasonable, and disadvantageous for the State to not work directly with the canal systems for numerous reasons including:

• Due to the complexity of restoring the ESPA combined with the extreme variability of the water availability to conduct managed recharge requires the development of recharge capacity throughout the ESPA. To meet the goals set by the legislature this will require working with any canal system that is willing to develop long-term partnerships with the IWRB.

• Utilizing the current canal systems saves the State tens to potentially hundreds of millions of dollars in infrastructure cost that would otherwise be required to construct equivalent systems in an effort to meet the goals set by the Legislature.

• The State's significant investment into the current infrastructure would be lost and require several million dollars to replicate.

• The water supply supported by the ESPA is a crucial part of an area that generates approximately one quarter to one third of the State's economy. As outlined in the ESPA CAMP and supported by the Legislature the success of the ESPA Program is key component to assisting with stabilizing and potential improving the ESPA.

Request

The IWRB is hereby requesting a Policy Directive/Exemption or an official determination that such Policy Directive/Exemption is otherwise unnecessary for the IWRB to collaborative with canal system to operate and develop the ESPA Managed Recharge Program that benefits the State of Idaho.

Subject Matter Expert: Wesley Hipke, IWRB Recharge Program Manager

Additional Background Information attached.

February 4, 2015 RE: Idaho Department of Water Resources - One-time exemption from competitive acquisition

September 24, 2015 RE: Exemption for Competition for Water Conveyance & Construction Contracts

Request for One Time Exemption from Competition from

Idaho Division of Purchasing (DOP)

E-mail Completed Request Form to: purchasing@adrn.idaho.gov

Agency Purchasing Representative (Name): Janet Garrett

E-mail/Phone: Janet.garrett@idwr.idaho.gov 208-287-4821

Name of Agency: Water Resources

Request for the Purchase of: Exemption for Competition for Water Conveyance & Construction

Contracts

Cost (attach quote): $50,000 - $ 2,000,000

IDAPA 38.05.01.042.10 provides that the administrator may exempt on acquisition from competitive procurement if the administrator determine,s that bidding is impractical, disadvantageous or unreasonable under the circumstances. Examples Include, but are not llmited to: special market conditions; property requiring special contracting procedures due to uniqueness; and services for which competitive sol/citation procedures ore Impractical.

Background and Justification (attach additional sheets as needed):

Please see attached

Agency Celt/ficatlon: The Information provided above is true and accurate to the best of my knowledge, and supports the need for a direct procurement of the described goads or services, in the best interest of the State:

[a Approved

□Rejected

D Additional conditions apply to this approval.

DOP •;ini<t,ator Printed Name,~ ~ OOP Administrator Signature: ~,_ ~ )s:

Date: -f-Z~-15

Memorandum

To: Janet Garrett, Brian Patton

From: Cynthia Bridge Clark

Date! September 22t 2015

Re: Idaho Water Resource Board Exemption for Managed Recharge Conveyance Contracts/Agreements

The Idaho Water Resource Board (IWRB) Is seeking services associated with the managed aquifer recharge program Including execution of technlcal/englneerlng studies, construction, and agreements to convey or deliver water. The purpose of this memorandum is to request an exemption from competition to execute agreements to convey the IWRB's recharge water through established Irrigation systems.

Background

The Eastern Snake Plain Aquifer {ESPA) has been losing approximately 200,000 acre-feet annually from aquifer storage since the 1950s resulting in declining ground water levels and declining spring flows from the aquifer. Both ground water and surface water users have been Impacted by the declines leading to conjunctive administration water use conflicts. The State of Idaho also relfes on spring discharge from the ESPA through the Thousand Springs to assist in meeting minimum stream flow water rights at the Murphy Gage established under the Swan Falls Agreement. Many aquifers across the Idaho are declining or have existing or potential water use conflicts, including the Wood River, Mountain Home, Treasure Valley, Palouse Basin and Rathdrum Prairie aquifers.

The Idaho Water Resource Board (IWRB), on behalf of the State and In coordination with the water users, is tasked with implementation of aquifer stabilization programs. The ESPA Comprehensive Aquifer Management Plan (CAMP) was developed and adopted by the IWRB and approved by the 2009 Jdaho Legislature and Governor through House Bill 264. As a component of the Comprehensive State Water Plan, the ESPA CAMP provides a long-term plan for managing, stabilizing and ultimately recovering the aquifer.

One of the strategies identified in the CAMP was managed aquifer recharge. The IWRB operates a recharge program In the ESPA and Is currently expanding the program to increase the average annual recharge from approximately 55,000 acre-feet to 250,000 acre-feet.

"Managed recharge" in Idaho is the placement of water from a different source Into a ground water aquifer.

Managed recharge Is distinguished from Infiltration of precipitation (natural recharge} or the seepage of water during normal water delivery for irrigation or other uses (incidental recharge). Instead, managed recharge is accomplished by conveying water both through un-lined irrigation canals and in dedicated constructed recharge sites. Recharge In existing un-llned canals takes place both before and after the irrigation season through contracts between the IWRB and the corresponding Irrigation delivery entity.

Collaboration with irrigation companie.s allows the IWRB to recharge over large areas of the ESPA without obtaining access easements, rights-of-way or acquiring land. Constructed recharge sites further increase recharge capacity and provide a delivery location if recharge water is available after the irrigation season begins.

Program Implementation: Infrastructure Improvements & Conveyance Contracts

At this point, the primary method of accomplishing aquifer recharge Is through existing canal systems which atlow seepage directly from the canal and convey water to dedicated recharge sites. These canal systems are owned and operated by private canal companies and Irrigation districts (quasi-governmental entities). It Is l therefore necessary to contract directly with these entities to convey recharge water when it Is available through their canals and infrastructure.

One of the IWRS's priorities is to significantly increase annual recharge by the improving the recharge capacity of these systems. They may require a wide variety of modifications to Increase system capacity, longevity and allow for the delivery of water during the winter months without risking damage to the canal system Infrastructure. The IWRB has agreed to fund engineering and other studies to assess whether these canal systems can carry more recharge water at different times of year, and to fund required but cost effective system modifications.

The IWRB will contract directly with the canal companies and Irrigation districts to complete, or hire the necessary consultants to perform, the studies and construction activities. In general, the studies Involve engineering and geologic investigation, flow monitoring, and other preparatory activities involved In determining suitability of potential recharge sites. Construction and faclllties modification include a wide range of actions such as road work, channel modificatlon or reconstruction, check dams, bypass channels for hydropower plants, modifications to prevent icing at headgates, etc.

The IWRB will also contract with canal companies to deliver or convey water for aquifer recharge through their canals. Some of the water is recharged through seepage in the canals themselves and some is delivered to spreading basins (open land) off of the canals where the water is allowed infiltrate Into the aquifer. The recharge water Is provided under a water right owned by the IWRB. However, the IWRB does not own the canals or infrastructure to actually transport the water for recharge. As such, the IWRB is contracting with the canal companies directly to use the canal systems and to perform the duties necessary to divert and convey the water.

Authorities/Mandate

• 2005: The Idaho Legislature passed House Concurrent Resolution 28, House BIii 373, and House Bill 329 directing the JWRB to sponsor, fund and implement managed aquifer recharge on the Eastern Snake River Plain.

• 2009: The ESPA Comprehensive Aquifer Management Plan was adopted by the IWRB and approved by the 2009 Idaho Legislature and Governor through House Bill 264. As a component of the State Water Plan, the ESPA CAMP provides a long~term plan for managing, stabilizing and ultimately recovering the aquifer.

• 2012: Idaho Comprehensive State Water Plan, adopted by the IWRB and approved by the 2012 Idaho Legislature, recognizes recharge as a means of "enhancing ground and surface water supplies, providing mitigation for junior ground water depletions, or to help maintain desirable aquifer levels."

• 2014: The Idaho Legislature passed and approved: 1} House Bill 547 allocatlng $5 million annually from the Cigarette Tax to the IWRB for statewide aquifer stabilization, and 2) House Bill 479 allocating $4 for ESPA managed recharge capacity.

• 2015: The Idaho Legislature passed and approved Senate Bill 1190 allocating $500,000 for aquifer recharge.

Aquifer recharge is an ongoing and long-term water management program. We do not know exactly how many contracts will be required or the scale of system modifications. However, conveyance of water through existing private canal systems will continue to be the primary method of recharge.

C.L. "BUTCH" OTIER

Governor

TERESA LUNA

Director

BILL BURNS

Administrator

February 4, 2015

State of Idaho Department of Administration

650 West Stale Street Room l 00 P.O. Box 83720 Boise. ID 83720-0003 Telephone (208) 332-1824 or FAX (208) 334-2307 http://www.ndm.idnho.gov

Mr. Gary Spackman, Director Idaho Department of Water Resources 322 East Front St.

Boise, Idaho 83702

R.E.: Idaho Department of Water Resources - One-time exemption from competitive acquisition

The Idaho Department of Water Resources (IDWR) has been tasked by the Idaho Legislature to conduct engineering studies aimed at aquifer recharge for the Snake River Aquifer. For these studies to commence, IDWR will have to contract with privately owned canal companies and irrigation districts for use of related canals and ditches to conduct these studies. As such, these contracts cannot be competitively bid (in accordance with IDAPA 38.05.01.10.a.iv).

Therefore, I grant IDWR a waiver from competitive bidding for use of these waterways (engineering evaluation and studies) associated with the recharge of the Snake River Aquifer.

As the term of these projects is indefinite, this waiver will be for a term not to exceed five years from the date of this waiver.

IDWR is instructed to use prudent business judgment to ensure that the value of the derived benefit in contracting with these companies is commensurate with price reasonableness.

Bill Burns cc: Sarah Hilderbrand, State Purchasing Manager Janet Garrett, IDWR Purchasing Agent