HomeMy WebLinkAbout09375RESOLUTION NO. 9375
A RESOLUTION AUTHORIZING THE ENGAGEMENT OF
HOLLAND AND HART, LLP TO ASSIST THE CITY IN
OBTAINING IN- STREAM WATER RIGHTS TO SUPPORT THE
ARKANSAS RIVER FISHERIES HABITAT RESTORATION
PROJECT AND OTHER RELATED PROJECTS AND TRANS-
FERRING FUNDS FOR SUCH PURPOSE
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
Holland and Hart, LLP is hereby engaged to assist City obtaining in- stream water rights to
support the Arkansas River Fisheries Habitat Restoration Project and other related projects.
SECTION 2
The cost and expenses incurred by the City for the services of Holland and Hart, LLP, not to
exceed $100,000.00, shall be paid and funded by a transfer to Department of Public Works of
$25,000 from the Sewer User Fund and $75,000 from the General Fund Reserve.
INTRODUCED: August 27, 2001
By: Ro bert
APPROVED:
r idl tdt bf the City Council
r
ATTESTED B '
City Clerk
ED
E
City of Pueblo
OFFICE OF THE CITY ATTORNEY
127 Thatcher Building
PUEBLO, COLORADO 81003
Background Paper for Proposed
RESOLUTION
DATE: August 27, 2001
DEPARTMENT: Law
TITLE
11 12
�O
Cr)
co WD 1
G� GEAS
_ MPNP�GE
j�
OF /
AGENDA ITEM #
A RESOLUTION AUTHORIZING THE ENGAGEMENT OF HOLLAND AND
HART, LLP TO ASSIST THE CITY IN OBTAINING IN- STREAM WATER
RIGHTS TO SUPPORT THE ARKANSAS RIVER FISHERIES HABITAT
RESTORATION PROJECT AND OTHER RELATED PROJECTS
ISSUE
Should the City engage special water counsel for the purpose of obtaining an
adjudication of in- stream flow rights to support the Arkansas River Fisheries Habitat
Restoration Project and other related projects?
RECOMMENDATION
It is recommended that the Council authorize retention of special water counsel for
this purpose.
BACKGROUND
City staff has been working with the U.S. Army Corps of Engineers on the proposed
Arkansas River Fisheries Habitat Restoration Project for several years. Construction
of the Project is planned for September 2002 with completion in March 2004. The
Project would involve installation of facilities including placement of permanent rock
structures and check dams in the river to enhance the riparian habitat, as well as the
installation of a fish ladder/boat chute where a major diversion structure presently
exists. These facilities would be designed to allow kayaks and rafts to pass and the
Project would establish a boating course over about 2000 feet of the river. .
In order that the Project benefits be protected against future transfers of Arkansas
River water out of the basin and changes in diversion which would deplete the flow
below the minimum flows required for the Project, the City should initiate one or
more filings in the Water Court for Division 2 seeking adjudication of the necessary
in- stream flow rights. Such claims have recently been upheld in Water Division 1 for
the City of Golden, and have been recognized by the Colorado General Assembly in
the recently adopted Senate Bill 01 -216. These claims should not impair existing
water rights held by various water users, including the City's Board of Water Works.
Holland and Hart is an established Denver law firm with a water law practice and
familiarity with Arkansas River water issues. The firm is willing to undertake
representation of the City to pursue such claims at a cost estimated at $45,000 to
$65,000. We also estimate that water engineers and consultants will need to be
retained, under contract to water counsel, at an additional expense of $25,000 to
$35,000. Based upon these estimates, the Resolution authorizes an expenditure of
not more than $100,000.
Should the City not pursue in- stream water rights for the Project, stream flow
between the Pueblo Dam and Fountain Creek may substantially diminish in the future
as thirsty northern cities purchase water rights and, through transfers and exchanges,
divert the water north. Once approved by the water court, such transfers and
exchanges become vested rights, and it may be too late to secure flow rights for the
Project.
As an incidental benefit to obtaining in- stream flow rights for the Project, the
minimum flows will also secure dilution water for the City's wastewater treatment
facility. The existence of such dilution water will be beneficial by helping to contain
construction and maintenance costs of the facility in future years.
FINANCIAL IMPACT
This Resolution would authorize up to $100,000 for special water counsel and water
engineering consultants hired as experts by the special counsel. This expense is less
than 2% of the Project costs for the Arkansas River Fisheries Habitat Restoration
Project.
-2-