SUBJECT: CONSENT
Title
A Resolution of the Board of Trustees of the Town Of Erie Authorizing the Town to Enter Into Improvements Acquisition, Water System and Operations Agreement
Body
DEPARTMENT: Public Works
PRESENTER: Todd Fessenden, Public Works Director
Paul Zilis, Town Water Attorney
FISCAL INFORMATION: N/A
STAFF RECOMMENDATION:
Recommendation
Approve the Resolution to authorize the Town to enter into Improvements Acquisition, Water System and Operations Agreement.
End
SUMMARY AND BACKGROUND OF SUBJECT MATTER:
Background:
The Town has an opportunity to enter into an agreement to acquire facilities and water rights on Boulder Creek to deliver at least 750 acre feet to the Town for municipal use (“Water System”). The facilities would include a horizontal well, pumps, pipelines, water reservoirs and all other facilities necessary to deliver the water to the Town at a water pipeline or treatment plant to be constructed for the Town’s current Boulder Creek Project. The water rights would be sufficient to deliver a firm yield of at least 750 acre feet per year, and would include senior water rights for augmentation, a decreed augmentation plan and junior water rights for the well.
The Water System would be compliment to the Town’s current Boulder Creek Project by adding new facilities and augmentation sources in close proximity to that Project. It would have the same attributes as the Town’s Boulder Creek Project by providing additional water from Boulder Creek to continue to diversify the Town’s current water sources.
The subject horizontal well and storage reservoirs have already been constructed, and the Improvements Acquisition, Water System and Operations Agreement is structured to give the Town a 6 month diligence period to fully investigate the facilities, water quality and water quantity before moving forward with the project. If the Town elects to move forward, the Sellers will be responsible for the adjudications of all water rights and permitting of all facilities. Upon successful adjudications and permitting, the closing would occur, and the Town would be conveyed title to the horizontal well and all water rights. It would also acquire the necessary easements and real property interests in the other facilities necessary to deliver the water, which would be owned and operated by a Metropolitan District. It would be similar to other Intergovernmental Agreements for the operation and maintenance of water systems, which are common in Colorado.
The payment for the system and water rights would be treated water credits for the amount of raw water which is delivered to the Town. The credits could be used in developments within Town boundaries which are served water by the Town. The other consideration would be an agreement to serve the Shores at Plum Creek development with out of town sewer service, at a cost of no more than twice the amount of in-town sewer service.
The agreement would provide an opportunity for the Town to acquire an entire water system to provide raw water for approximately 1,500 new homes with no capital expenditures. The system would also provide the water at the location of the Town’s Boulder Creek Project, with additional water rights.
Fiscal Impact:
There would no fiscal impacts except the costs of the due diligence in investigating the facilities and water to be provided.
Board Priority(s) Addressed:
☐ Attractive Community Amenities
☐ Engaged and Diverse Community
X Prosperous Economy
☐ Well-Maintained Transportation Infrastructure
☐ Small Town Feel
X Safe and Healthy Community
☐ Effective Governance
X Environmentally Sustainable
X Fiscally Responsible
ATTACHMENTS:
a. Resolution
b. Agreement