Title
A Resolution Authorizing the Purchase of Lower Arkansas
Water Management Association Stock owned by Arkansas River Farms, LLC for Colorado Springs Utilities; and Authorizing the Execution of Closing Documents
Presenter:
Pat Wells Water Resources and Demand Management General Manager
Eric Tharp, Acting CEO, Colorado Springs Utilities
Body
Summary:
Utilities has negotiated a water sharing agreement with the Lower Arkansas Water Management Association (LAWMA), which is the first step toward diversifying Colorado Springs Utilities' water supply portfolio through the use of Alternative Transfer Methods (ATMs). The water sharing agreement contemplates Colorado Springs Utilities' acquisition of water shares in LAWMA and the filing of a water court application that is necessary for Colorado Springs Utilities to utilize the water derived from the LAWMA shares, both of which require City Council approval by resolution.
Previous Council Action:
N/A
Background:
Colorado Springs Utilities has had informal water sharing agreements with LAWMA for many years. Through the subject acquisition, Colorado Springs Utilities will purchase 2,500 LAWMA shares (2,000 acre-feet of water) from Arkansas River Farms, LLC, for use in five out of every 10 years; LAWMA will receive the water in the remaining five years. The transaction will benefit Colorado Springs Utilities' customers by addressing storage recovery following drought years. It also is an important step toward achieving the water supply goals defined in the Integrated Water Resource Plan (IWRP). Colorado Springs Utilities will also need to file a water court application for appropriative rights of exchange in order to utilize the water derived from the LAWMA shares and other ATM water it subsequently acquires.
If the resolution authorizing the purchase is approved, Colorado Springs Utilities and Arkansas River Farms, LLC will execute a Purchase and Sale Agreement in similar form to the attached agreem...
Click here for full text