SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Purchase Agreement with Robert V. Michel and Christi J. Michel for the Purchase of three Colorado-Big Thompson Units
Department
DEPARTMENT: Utilities
Presenter
PRESENTER(S): Todd Fessenden, Utilities Director
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Time
TIME ESTIMATE: 20 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $171,000
Balance Available: $59,400.00 + $111,600 transfer request
Fund Water Fund
Line Item Number: 500-75-110-603500-267509
Budget Transfer: $111,600 from 500-75-110-605000-257513
New Appropriation Required: No
Policy
POLICY ISSUES:
Town Council must approve expenditures of this amount according to the Purchasing Policy.
Recommendation
STAFF RECOMMENDATION:
Approve the Resolution
Body
SUMMARY/KEY POINTS
• The Town’s primary water rights are held in roughly 7,300 shares of CBT.
• CBT can be delivered directly to the Lynn R. Morgan Water Treatment Facility and is a source of high-quality raw water.
• The Town seeks to grow its investment in this source if the price is reasonable.
BACKGROUND OF SUBJECT MATTER:
Town staff were approached recently by a private broker looking to sell shares of CBT for a client. Staff referred the broker to our water legal counsel team at Lyons Gaddis who negotiated the price and term of the sale. Staff and legal counsel believe the price is reasonable for this small amount of shares and believe it is in the Town’s best interest to continue to invest in the CBT project when funds and timing allow.
The project is over the existing budget. In order to complete this project, staff asks Council to transfer $111,600 to Budget Line Number 500-75-110-603500-100007 (Raw Water Acquisitions - NISP) from (500-75-110-605000-257513) (NISP Conveyance Easement Acquisitions).
priorities
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attachments
ATTACHMENT(S):
1. Resolution
2. Purchase Agreement
3. Escrow Agreement