Title
A Resolution Authorizing the Purchase of Fountain Mutual Irrigation Company and Chilcott Ditch Company Stock and Associated Water Rights owned by Osage Trust; and Authorizing the Execution of Closing Documents
Body
From:
Jerry Forte, P.E., Chief Executive Officer, Colorado Springs Utilities
Summary:
Colorado Springs Utilities has been offered the opportunity to purchase shares in the Fountain Mutual Irrigation Company and in the Chilcott Ditch Company that collectively have the potential to yield approximately 300 acre-feet of water each year.
Previous Council Action:
N/A
Background:
Executive Limitation 10 ("EL-10") provides that Colorado Springs Utilities' ("Utilities") CEO "may not fail to protect and optimize existing water resources and aggressively seek to develop new water resources." The need for Utilities to acquire additional water rights was made evident during the recent drought when Utilities' water service customers were subject to watering restrictions. Acquisition of new water rights will also be required to meet Utilities' water customers' long term water demands.
Utilities has a unique opportunity to purchase shares in the Fountain Mutual Irrigation Company (FMIC) and the Chilcott Ditch Company (Chilcott) for $2.9 million. These shares represent an ownership interest in senior Fountain Creek water rights that are anticipated to yield approximately 300 acre-feet of renewable and reusable water per year. Acquisition of the shares would enhance and diversify Colorado Springs' water rights portfolio in accordance with EL-10's policy direction, Utilities' long term water supply plan, and Utilities' drought response plan.
The acquisition of the FMIC/Chilcott shares may be characterized as a "no regrets" action for several reasons. The shares will provide a source of local water supply to meet Utilities' existing and future water demands on Fountain Creek, including augmentation of well pumping for ...
Click here for full text