Body
Department of Utilities
Reference: Resolution Approving a Water Storage and Delivery Agreement with Farmers Reservoir and Irrigation Company and The Burlington Ditch, Reservoir and Land Company; Authorizing the Mayor to Execute said Agreement on Behalf of the City; and Setting Forth Other Details Related Thereto
To: Mayor Richard N. McLean and Members of City Council
Through: Manuel Esquibel, City Manager
Prepared By: Curtis Bauers, Director of Utilities
Date Prepared: March 3, 2015
PURPOSE
Consider a resolution to approve and authorize the Mayor to execute a Water Storage and Delivery Agreement with Farmers Reservoir and Irrigation Company and the Burlington Ditch, Reservoir and Land Company.
BACKGROUND
Farmers Reservoir and Irrigation Company (FRICO) operates Barr Lake and makes releases to the Beebe Draw Canal and other ditches below Barr Lake. Both FRICO and the Burlington Ditch, Reservoir, and Land Company (Burlington) own specific decreed water rights within Barr Lake. FRICO operates the Burlington decreed water rights for the benefit of Burlington shareholders. FRICO is responsible for operating the reservoir's physical water supply, conducting the water accounting for that water supply, and other administrative functions.
These FRICO-operated structures are in close proximity to Brighton's Beebe Draw Well Field, as well as the location of return flows that will be required per the 03CW320 Decree. Brighton's augmentation returns, return flow requirements from changed water shares, and direct delivery to the Beebe Draw Well Field all require the cooperation of FRICO. FRICO is responsible for much of the operation and storage of Brighton's Burlington and FRICO share water and will also incur some additional accounting obligations in conjunction with the water accounting completed by the City.
After extensive negotiations, FRICO and Brighton staff have settled on details of a Water Storage and Delivery Agreement that are agreeable to all parties at the staff-level. The negotiated Agreement and its terms are being brought to City Council for their consideration.
In the proposed Agreement, FRICO will be obligated to operate Brighton's storage in Barr Lake, make certain releases to various ditches downstream of Barr Lake, allow for direct delivery of stored share water to Brighton's wells, and maintain Barr Lake accounting as may be necessary with the State Engineers Office. Brighton would agree to pay $50 per acre-foot of water managed by FRICO (this term will vary over time with the application of the Consumer Price Index (CPI)).
CRITERIA BY WHICH COUNCIL MUST CONSIDER THE ITEM
FINANCIAL IMPACT
The City agrees to pay $50 per acre-foot of water managed by FRICO. With Brighton's current water share portfolio, the City can expect to pay just less than $50,000 a year for FRICO's management per this Agreement, depending on annual share allocations.
STAFF RECOMMENDATION
Brighton staff, along with Brighton's special water counsel and expert witnesses, have thoroughly reviewed and negotiated the terms of this Agreement and recommend that it be approved. This Agreement with FRICO and the Burlington Ditch Company is a key component to Brighton's Beebe Draw Well Field operations and must be completed in order to continue operation of this significant water supply.
OPTIONS FOR COUNCIL CONSIDERATION
The Council may take any of the following actions:
1. Approve the resolution as stated.
2. Reject the proposed resolution.
3. Postpone consideration of the proposed resolution to negotiate item(s) in the Agreement.
ATTACHMENTS
· Resolution of the City Council of the City of Brighton, Colorado, Acting by and Through Its Water Enterprise, Approving a Water Storage and Delivery Agreement with Farmers Reservoir and Irrigation Company and The Burlington Ditch, Reservoir and Land Company; Authorizing the Mayor to Execute said Agreement on Behalf of the City; and Setting Forth Other Details Related Thereto
· Water Storage and Delivery Agreement between the City of Brighton, Farmers Reservoir and Irrigation Company and the Burlington Ditch, Reservoir and Land Company