Title
A Resolution Approving an Intergovernmental Agreement Between the City of Colorado Springs, on Behalf of its Enterprise Colorado Springs Utilities and the City of Aurora, Acting Through its Utilities Enterprise, Aurora Water
Presenter:
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Kim Gortz, Manager, Water Resource Management, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities (“Springs Utilities”) is requesting that City Council approve a resolution approving and authorizing the Springs Utilities’ CEO to enter into an IGA with the City of Aurora on behalf of its Utilities Enterprise, Aurora Water (“Aurora Water”) related to the Homestake Partner’s cost sharing on, ownership, operation, maintenance, repair and replacement of infrastructure intended to be part of the Homestake Project that Aurora Water constructed in connection with its Wild Horse Reservoir project.
Background:
Springs Utilities and Aurora Water (the “Homestake Partners”) jointly own the Homestake Project (the “Project”) and equally share all costs and expenses for the infrastructure, collection, storage, and diversion of water associated with the Project. Aurora Water is constructing Wild Horse Reservoir that will be filled using deliveries of Aurora Water’s water through the Otero Pipeline, which is part of the Project. Aurora Water requested Springs Utilities’ consent to install infrastructure necessary to connect Wild Horse Reservoir to the Otero Pipeline. As a condition of its consent, Springs Utilities required Aurora Water to install a second isolation valve on the Otero Pipeline. Aurora Water has installed the secondary isolation valve and the Homestake Partners desire that it become part of the Homestake Project assets. Springs Utilities and Aurora Water have negotiated an intergovernmental agreement (the “IGA”) related to ownership, operation, maintenance, repair, and replacement of the secondary isolation valve and Springs Utilities’ repayment of 25-percent of the costs for the valve. Springs Utilities requests that City Council approve the attached resolution approving and authorizing the Chief Executive Officer of Springs Utilities to sign the IGA.
Previous Council Action:
N/A
Financial Implications:
Springs Utilities’ share of the costs for the second isolation valve is $392,760.75. Funds are being held in escrow from the 2025 budget that forecasted this cost.
City Council Appointed Board/Commission/Committee Recommendation:
On February 18, 2026, the Utilities Board voted to refer the IGA to City Council for consideration at the regular City Council Meeting on February 24, 2026.
Stakeholder Process:
Springs Utilities and Aurora Water have agreed on the terms of the IGA.
Alternatives:
(1) Approve the resolution approving the IGA and authorizing the Chief Executive Officer of Springs Utilities to enter into the IGA; (2) not approve the resolution; (3) modify the resolution or the IGA; or (4) refer the matter back to Springs Utilities for further consideration.
Recommended Action
Proposed Motion:
Motion for City Council to approve the resolution approving and authorizing and directing the Chief Executive Officer of Springs Utilities to enter into the IGA in a form substantially similar to that attached hereto.
Summary of Ordinance Language
N/A