SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving a Water Lease Agreement with the City of Boulder
Department
DEPARTMENT: Utilities
Presenter
PRESENTER(S): Todd Fessenden, Utilities Director
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Time
TIME ESTIMATE: 0 minutes
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For time estimate: please put 0 for Consent items.
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $222,000 ($600 per acre-foot)
Balance Available: $0
Fund Water Fund
Line Item Number: 500-75-110-573440-00000
New Appropriation Required: Yes, with $222,000 supplemental appropriation
Policy
POLICY ISSUES:
The Town strives to maintain adequate water supplies ensuring we are prepared for emergencies. This lease of an emergency water supply from City of Boulder will help bolster our ability to supply water if needed. This water comes from the Boulder Reservoir directly upstream of our treatment plant.
Recommendation
STAFF RECOMMENDATION:
Approve the Resolution
Body
SUMMARY/KEY POINTS
• This lease of an emergency water supply from City of Boulder will help bolster our ability to supply water if needed.
• The Town is initiating the provision of this lease, in part, to ensure we have water supply while repairs are made to the dam at Erie Lake.
• This lease was recently approved by the Northern Water Board.
• Approval of the City of Boulder Council is also needed to have this lease in place for Summer 2026.
BACKGROUND OF SUBJECT MATTER:
The City of Boulder and Northern Colorado Water Conservancy District are partners in storage held in Boulder Reservoir. The Town of Erie has infrastructure to take water from Boulder Reservoir’s supply canal and deliver that water to be treated at the Town’s Lynn R Morgan Water Treatment Facility. As part of settlement negotiations with City of Boulder related to a water court case in 2024, the Town and City agreed to a 20-year lease of up to 370 acre-feet of water held in Boulder Reservoir as Colorado Big Thompson (CBT) shares. Town staff and Boulder staff worked together, along with respective water counsel, to draft an agreement that met the terms of the settlement as well as terms requested by Northern. As such the initial lease has been reduced to 10 years to comply with Northern’s rules. At the end of the 10-year term the Town and City, if they deem the process a success, may approach Northern and request an additional ten years.
The Town is requesting to initiate the 10-year term this year due to the need to drain Erie Lake to make repairs to resolve a leak in the toe (bottom) of the dam. The Town must indicate to Boulder the number of shares it would like to request by June and then may utilize those shares this irrigation season.
priorities
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attachments
ATTACHMENT(S):
1. Resolution
2. Agreement