Body
Department of Utilities
Reference: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRIGHTON, COLORADO, ACTING BY AND THROUGH ITS WATER ENTERPRISE, APPROVING THAT CERTAIN SECOND AMENDMENT TO THE EASEMENT AGREEMENT BY AND BETWEEN THE CITY AND THE SEVENTH DAY ADVENTIST ASSOCIATION OF COLORADO, INC., AND AUTHORIZING THE MAYOR TO EXECUTE THE SECOND AMENDMENT ON BEHALF OF THE CITY.
To: Mayor Richard N. McLean and Members of City Council
Through: Manuel Esquibel, City Manager
Prepared By: Curtis Bauers, Utilities Director
Date Prepared: June 11, 2015
PURPOSE
To consider the a second amendment to the 2002 Easement Agreement granted to the City of Brighton by the Seventh Day Adventist Association of Colorado, Inc. to allow for the installation of a municipal water well of the church’s property.
BACKGROUND
The City of Brighton was granted an Easement in 2002 by the Seventh Day Adventist Association of Colorado, Inc. to re-install a well, formerly known as the Schwarz Well, at the rear of the Seventh Day Adventist church property at 567 Bromley Lane. That well was installed and operated as a non-potable supply under the Central Colorado Water Conservancy District augmentation contract until 2007. In 2007 that Easement Agreement was amended to account for the loss of augmentation credits to operate the well, in addition to other operational problems with the well. That Amendment allowed for the continued operation of the irrigation system at the church, and an extension of that system to irrigate the Bromley median, utilizing a potable supply. It allowed for a slightly reduced rate for that irrigation, but still resulted in a significant increase from the non-potable rate that had originally been approved. This Second Amendment is intended to honor the potable rate that was intended in 2007, and represents a compromise from the newly adopted 2015 separate irrigation rate. It also allows for the potential use of the well in the future and the possibility that a non-potable supply (and corresponding non-potable rate) could be utilized in that irrigation system again in the future.
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
FINANCIAL IMPACT
With the signing of the First Amendment in 2007, the irrigation rates at the church increased from $2.21/1,000 gallons (the non-potable rate) to $3.67/1,000 gallons (the commercial potable rate), as a result of the City’s inability to continue to utilize the well as a non-potable irrigation supply. By 2014 that rate had risen to $5.94/1,000 gallons. Under the new 2015 outdoor-only commercial irrigation rate schedule, the cost is rising to $8.10/1,000. This outdoor-only rate did not exist in 2007 and was therefore not contemplated in the First Amendment. The 2015 rate for commercial combined uses - indoor & outdoor is set at $5.95/1,000 gallons. Establishing the combined use rate as proposed in the Second Amendment seems to be the more in keeping with the intent of the original Easement and the First Amendment.
STAFF RECOMMENDATION
The Amendment addresses the concern that the original Easement was granted in anticipation that a non-potable supply would be permanently provided to the church property, and that a significantly low irrigation rate would therefore be available. By amending the Easement Agreement a second time, a reasonable compromise is reached that acknowledges the potential value of the easement should the City be able to utilize it to obtain a significant supply of non-potable water in the future, while recognizing that the non-potable supply is not present at this time. It also preserves the ability of the Seventh Day Adventist property to obtain a further reduced non-potable rate in the event the well can be brought back into use in the future. Therefore staff recommends approval of the Second Amendment to the Easement Agreement.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve the Resolution as presented
• Reject the Resolution as presented
• Postpone consideration of the Resolution
ATTACHMENTS
• Second Amendment to Easement Agreement
• Proposed Resolution