Title
A Resolution Authorizing the Purchase of Fountain Mutual Irrigation Company Stock and Associated Water Rights Owned by Comanche Resources, LLC for Colorado Springs Utilities; and Authorizing the Execution of Closing Documents
Presenter:
Wayne Vanderschuere, General Manager, Planning, Engineering and Resource Management, Water Services Division, Colorado Springs Utilities
Jerry Forte, P.E., Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities (Utilities) has an opportunity to purchase 131 shares in the Fountain Mutual Irrigation Company (FMIC) that are expected to yield 91.7 acre-feet of renewable, reusable local water each year. Colorado Springs Utilities is requesting City Council approval of a resolution authorizing the purchase of these shares.
Previous Council Action:
N/A
Background:
According to EL-10, Utilities "may not fail to protect and optimize existing water resources and aggressively seek to develop new water resources". The acquisition of the FMIC shares provides a long term source of augmentation water and also allows Utilities to utilize locally available water in the water system. Acquisition of the shares will also 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.
Utilities has the opportunity to purchase 131 shares in the Fountain Mutual Irrigation Company (FMIC) for a total of $1,473,750. These shares are anticipated to yield approximately 91.7 acre-feet per year of renewable and reusable water supply. In 2014, Utilities acquired 144 shares of FMIC stock. Utilities has agreed to pay $11,250 per share of FMIC in this acquisition.
The acquisition of the FMIC shares is beneficial in several specific ways. The shares will provide a source of local water supply to meet Utilities' existing and future water demands on Fountain Creek, includin...
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