TN Duck River Agency September 9, 2010 By Doug Murphy, Executive Director

1. Community-Based Regional Water Supply PlanningTennessee Advisory Commission on Intergovernmental Relations: Briefing TN Duck River Agency September 9, 2010 By Doug Murphy, Executive Director

2. Presentation Outline • DRA Organization • Why the need for Regional Water Supply Planning • The Water Supply Plan Process • “WORKING TOGETHER WORKS” • “GROWTH PAYS FOR GROWTH”

3. “To develop, protect and sustain a clean and dependable water resource for all citizens in the Duck River Region” Bedford, Coffee, Hickman, Marshall, and Maury Counties Duck River Agency Mission

4. DRA Organization • Established: 1965 • 17 Member Board Appointed by the Governor • Represent 5 Counties: Coffee, Bedford, Marshall, Maury, and Hickman • 7 Water Systems: Columbia, Lewisburg, Spring Hill, Bedford County, Shelbyville, Manchester, Tullahoma • Funding: Water Systems pay a nickel per 1,000 gallons of water sold

5. Duck River Agency Organization Chart Citizens Board of Directors Executive Director Finance Director DRATAC WRC

6. Presentation Outline • DRA Organization • Why the need for Regional Water Supply Planning • The Water Supply Plan Process • “WORKING TOGETHER WORKS” • “GROWTH PAYS FOR GROWTH”

7. Regional Planning • Multiple Uses depend on the Duck River and Normandy Reservoir • 250,000 resident customers • Industrial and commercial use • Agricultural • Waste load assimilation • Recreation • Biologically diverse river • 2007 Drought of Record • Normandy Reservoir reached 42% capacity • Flow in the upper Duck River was dependent on Normandy Reservoir • Politics • House Bill 3545 • Senate Bill 2464 • Emotions • Public perception • No long term creditable regional plan • Good science • Proven decision making model

8. Project Planning Area

9. Presentation Outline • DRA Organization • Why the need for Regional Water Supply Planning • The Water Supply Plan Process • “WORKING TOGETHER WORKS” • “GROWTH PAYS FOR GROWTH”

10. “You are only as good as your help”hdm

11. WSP Strategic Team • O’Brien & Gere • Principal consultant • CTI Engineers, Inc. • TN engineering firm • BDY Environmental, LLC • Environmental permitting • HydroLogics, Inc • Modeling • Trauger & Tuke • Legal

12. Updated Cost Model Draft Cost Model Decision Model Comprehensive Regional Water Supply Plan Duck River Development Agency Project Approach and Decision Making Process Workshop 5 Implementation Planning Week 42 Workshop 6 Conclusions Week 50 Workshop 4 Evaluating Alternatives Week 33 Workshop 2 Preliminary Feasibility Week 12 Workshop 3 Developing Alternatives Week 23 Workshop 1 Goals / Kick-off Meeting Week 2 Next Steps Data Collection and Initial Investigations Alternatives Development Alternatives Evaluations Report and Decision-Making • Review stream hydrology and water quality data • Review population and demands • Peaking factors • Refine service areas and demands • Identify supply alternatives • Finalize cost estimates • Compare PW cost / benefits Draft Key Issues Memo Water Quality / Regulatory Compliance Draft Key Issues Memo Water Quality / Treatment Capacity Projections • Screen Alternatives • Review Tech. Memo • Finalize report and executive summary • Draft Implementation Plan • Review key issues memo on water quality / capacity • Select alternatives • Service areas / demands • Water supply options • DRA goals and policies • Key issues review • Establish information collection program • Demand projections • Review public input • Finalize alternative selection • Draft report and executive summary • Adopt Implementation Plan • Authorize design Key Issues Memo Water Supply Alternatives Water Quality and Capacity Meetings with participants Draft Report Final Report Meetings with participants • Review reservoir release requirements and NPDES permits • Revisit redundancy approaches • Review key issues memo – redundancy • Discuss permitting obstacles • Adopt reliability approach • Compare PW cost / benefits of alternative approaches • Review key issues memo on reliability policy • Approach for supply permitting and stream quality • Review demands / capacity policies • Review key issues memo • Finalize reliability approach Draft Key Issues Memo Redundancy Approach Permitting Issues / Obstacles Draft Key Issues Memo Reliability Goals and Approaches • Pre-scoping meeting for permits and obstacles • Scoping meeting for permits and environmental studies • Expert panel discussion on regulatory approaches • Approve scope for supplemental studies If needed • Reliability goals • Approach to water supply permitting • Environmental impacts Update Key Issues Memo Permitting Issues and Approaches Reliability and Permitting Regulatory discussion Meetings with regulators Meetings with regulators • Develop basis for costing for each participant • Review unit costs • Develop cost estimate, based on technical studies (above) • Load cost model • Review draft report • Sensitivity analysis on present worth • Draft report section on costs • Review funding options Present Worth Cost Analysis • Select preferred funding plan Draft Key Issues Memo Cost Estimating Methods • Endorse funding plan • Retain legal and financial counsel for bonding • Select preferred funding plan • Refine costs and funding options • Review funding options • Agree on cost estimating techniques • Finalize costing methods • Review preliminary costs Financial Meetings with potential funding agencies • Communication plan for implementation phase • Define evaluation factors • Website updates • Briefings for elected officials • Public meeting • Update decision model with PW costs and revisit pair-wise • Stakeholders and roles • Community impacts review • Identify evaluation factors • Develop pair-wise comparison • Gather input on non-cost factors • Website development • Briefings for elected officials Finalize Community Impact Assessment Draft Key Issues Memo Community Impacts • Review draft report • Select alternatives • Review input from stakeholders • Plan Public meeting • Review policy impacts on alternatives Community Impacts and Public Policy Community issues Water supply attitudes Interview key stakeholders Open House Meetings Open House Meetings Open House Meetings June 2009 August 2010

13. Oasis Model

15. $$,$$$.$$

16. “The project goal is to have a Comprehensive Plan that will provide direction to the Duck River Agency regarding the management of available water resources, including the implementation of specific water supply infrastructure projects.”

17. DRA Board (Decision-Maker) Public & Stakeholder Input Recommendation Recommendation Executive Director Collaboration or Recommendation Input Water Resources Council Duck River Agency Technical Advisory Committee 50-Year Plan Information Exchange Information Exchange Consultant Team Public & Stakeholder Input (Workshops and Open Houses) Roles of Key Participants in the Decision Process 17 File Location

18. Open Process • 6 Workshops • 3 Public Open Houses • www.duckriveragency.org • Media coverage • Civic Group Presentations • Garden Club Presentations • One-on-One meetings

19. Water Systems Bedford County Utility District Columbia Power and Water Systems Duck River Utility Commission HB&TS Utility District Lewisburg Water and Waste Water Manchester Water Systems Maury County Water System Tullahoma Utility Board Shelbyville Water and Sewer Spring Hill Water Systems Federal Agencies Natural Resource Conservation Service Tennessee Valley Authority U S Department Agricultural U S Fish and Wildlife Service U S Geological Survey State Agencies/Committees Tennessee Advisory Commission on Intergovernmental Relations Tennessee Department of Environment Tennessee Water Resource Technical Advisory Committee Tennessee Wildlife Resource Agency Legislators Senator Bill Ketron Senator Jim Tracy Non – Government Organizations Duck River Watershed Association Friends of Short Springs Tennessee Environmental Council Tennessee Duck River Agency Board Tennessee Farm Bureau Federation The Nature Conservancy World Wildlife Fund Municipals Columbia Lewisburg Manchester Tullahoma Shelbyville Spring Hill Wartrace Companies/Professionals AMEC Earth & Environment BDY Environmental, INC Consolidated Technologies, Inc Energy and Water Economics HydroLogic’s, Inc Garver Engineers, Inc Geoservices, LLC Gresham, Smith and Partners Obrien & Gere Engineers, Inc Trauger & Tuke Participants

20. Water Supply Plan: 3 Parts • NEEDS ASSESSMENT • ALTERNATIVE ANALYSIS • IMPLEMANTATION PLAN

21. Needs Assessment • Normandy Reservoir and the Duck River supply virtually all the public water supply needs in the five county planning area • The drought of 2007-2008 heightened awareness of the limitations of the Duck River, as Normandy Reservoir fell to approximately 42% capacity • Water use restrictions and emergency reductions to releases from Normandy Reservoir were approved • Population projections from CBER and current water usage patterns were used to project future water usage, which will roughly double by 2060 • OASIS model utilized the water demand projections, current flow constraints and 87 years of hydrologic data to assess the reliability of the Normandy Reservoir and Duck River to meet the water supply and environmental needs of the Duck River Region • A 4 mgd deficit currently exists under the drought of record and current constraints • A deficit of up to 32 MGD in the year 2060 is projected under the drought of record and current constraints which equates to 1.4 BG to 3 BG of storage

22. Projections

23. Need Assessment Deficit based on worst case drought of past 87 years (1-year in 87-year event) Deficit based on droughts that occur approximately 1-year in 10-years

24. Water Supply Plan: 3 Parts • NEEDS ASSESSMENT • ALTERNATIVE ANALYSIS • IMPLEMANTATION PLAN

25. Alternatives Started with over 40 then identified 26 non-structural and structural alternatives including: • Implementing additional water efficiency measures • Implementing a regional drought management plan • Changing operation of Normandy Reservoir • Modifying river constraints • Constructing pipelines from reservoirs, rivers or other water systems • Constructing tributary reservoirs (Fountain Creek Reservoir) • Building off-stream storage reservoirs (pumped storage) • Utilizing quarries • Raising Normandy Dam

26. Evaluation Criteria • Reliable Capacity • Raw Water Quality • Cost • Implementability / Risk of Delays • permittable • public acceptance • property acquisition • Flexibility • phased implementation • Environmental Benefits • Recreation

27. Alternative Screening Alternatives were sorted into one of these groups: • Baseline – an alternative that was selected to be a component of the recommended water supply plan • Fatally Flawed or Highly Unlikely – an alternative that was eliminated from further consideration • Back-up – an alternative that was not selected as a Cornerstone, but will be considered as a potential component of the 50-year water supply plan • Cornerstone - an alternative in the “shortlist” that could satisfy the entire deficit, and is receiving further consideration as a key element of the 50-year water supply plan

28. Water Supply Plan: 3 Parts • NEEDS ASSESSMENT • ALTERNATIVE ANALYSIS • IMPLEMANTATION PLAN

29. Baseline Alternatives • Regional Drought Management Plan • Water-use Efficiency Program • Optimize Releases from Normandy Reservoir

30. Comprehensive 50-year Water Supply Plan with 100-year Vision Relocate Columbia’s water withdrawal to a new intake approximately 25 miles downstream, where there is adequate flow to satisfy projected needs Implement a water use efficiency program and develop a regional drought management plan Raise Normandy Dam and optimize releases from Normandy Reservoir to enhance the reliable yield available for all Duck River uses 30

31. Advantages of Implementing all Components • Multiple sources of supply – Increases reliability by utilizing multiple sources of water supply • Regional solution with benefits beyond water supply • Enhances instream flow for entire Duck River region • Extends recreation (reservoir and river) during droughts • Reduces flood risk downstream of Normandy Dam • Finances – Encourages financial support from entire region/ lower cost per customer … “Working Together Works” • Flexibility – Combination of structural and non-structural components address uncertainty in future conditions including: • Alteration of instream flow conditions • Changes in projected water demands or water use characteristics • Changes in regulatory requirements • Likelihood of more severe hydrologic/climatic conditions • Changes in land use and hydrologic conditions in watershed

32. Williamsport Intake and Raw Water Pipeline to Columbia (with one 30-inch pipeline for 20 mgd) Raise Normandy Dam Baseline Alternatives Total Costs $38 million $20 million $4 million $62 million Estimated Project Cost

33. Philosophy • Cost sharing: • “Growth Pays For Growth” • System development charge for new services and larger services • “Working Together Works” • Common charge based on all water withdrawals

34. Financial Strategy • Three examples of initial estimated increase in cost per household (typical usage = 5,000 gallons/month) • Using solely water withdrawal fees: • Approximately $3.00/month • Using water withdrawal fees (all customers) and System Development Charges (for new services and larger services): • Approximately $1.50/month • Using water withdrawal fees (all customers) and System Development Charges (for new services and larger services), plus phasing the construction and using current reserve funds: • Approximately $0.60/month

35. Potential Schedule and Phasing Approach 35 File Location

36. Next Steps • Receive comments at Open House public meeting • Complete Report with Recommendations and Implementation Plan • Develop Financial Strategy • Develop Communication Plan • Board endorses Report and Recommendations in October • Implementation

37. Questions or Comments Doug Murphy doug@duckriveragency.org (931)684-7820

38. TVA Normandy Operating Guidehttp://www.tva.gov/river/lakeinfo/index.htm Operating guide 2007 Elevations 2008 Elevations

39. Comprehensive 50-year Water Supply Plan with 100-year Vision • Implement Baseline Alternatives • Increase Storage Capacity at Normandy Reservoir • Locate new intake for Maury County