Department of Utilities
Reference: Purchase of 65 Fulton Irrigating Ditch Company Shares
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Director of Utilities
Date Prepared: January 21, 2026
PURPOSE
Requesting City Council approval of a resolution approving the purchase of 65 Fulton Irrigating Ditch Company shares in an amount of $84,000 per share, for a total purchase price of $5,460,000, plus costs and expenses related thereto and authorizing the City Manager, or designee, after consultation with the City Attorney, to execute the Agreement for Purchase and Sale of Water Shares on behalf of the City.
BACKGROUND
The City of Brighton (“City”) Water Utility provides drinking water to the residents of the City. The drinking source for the water treated at the water treatment plant is from shallow wells throughout the City. All water that the City can use for drinking water has gone through a Court process to authorize the use of that water for treatment and municipal use. The wells are pulling water into the water treatment plant and intercepting the groundwater that would otherwise recharge and go to larger water bodies, such as the South Platte River or the Beebe Draw/Barr Lake. In order to protect and preserve the flow in the larger bodies of water, the City must replace (known as “augmentation”) the water that was withdrawn for drinking purposes. The City utilizes “surface water rights” to replenish the South Platte River and the Beebe Draw/Barr Lake. The vast majority of the surface water rights are obtained from mutual ditch companies in the area.
The proximity of the Fulton Irrigating Ditch and the extensive infrastructure the City has installed to move water from the Fulton Irrigating Ditch makes the Fulton Ditch an important surface water source for the City. The City owns significant shares in the Ditch, is currently the single largest shareholder and serves on the Board of Directors for the Ditch.
The City maintains and owns various sources of water from surface water rights to wells, and together all the water owned is called the City’s water resource portfolio. In order to continue to grow in population and further strengthen the City’s water resources portfolio, the City must continue to obtain surface water rights to augment the additional water withdrawn from wells to provide increased amounts of drinking water. The City has been planning ahead and is always looking at water needs for future residents of Brighton. Due to the combination of agreements that already exist, some developers may pay fees in lieu of dedicating actual water rights or water shares. It is important for the City to utilize these fees collected to purchase surface water rights, such as these Fulton Irrigating Ditch Company shares, to assure sufficient water resources to meet future needs and to prevent water shortage.
City staff and our consulting engineers and attorneys have reviewed the 65 shares and determined the price per share is a fair market rate.
FINANCIAL IMPACT
Sufficient funds exist in the Water Fund for the purchase, however, City staff will bring forward a budget amendment at the next City Council Meeting to increase the 2026 budget appropriation to cover this expenditure to ensure no impact to planned operational and capital expenditures in 2026.
STAFF RECOMMENDATION
City staff recommend approval of the resolution to further augment the City’s water portfolio and utilize fee-in-lieu of water dedication monies collected to date.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve resolution as drafted
• Approve a modified resolution
• Deny resolution
• Provide further direction to staff
ATTACHMENTS
• Resolution