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HomeMy WebLinkAbout09565RESOLUTION NO. 9565 A RESOLUTION AUTHORIZING THE EXPANDED ENGAGE- MENT OF HOLLAND AND HART, LLP TO ASSIST THE CITY IN WATER RIGHTS LITIGATION INCLUDING OBTAINING RICD WATER RIGHTS TO SUPPORT THE ARKANSAS RIVER FISHERIES HABITAT RESTORATION PROJECTAND OTHER RELATED PROJECTS AND RELATED ADMINISTRATIVE AND OTHER PROCEEDINGS AND TRANSFERRING 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 in water rights litigation including obtaining Recreational In- Channel Diversion water rights to support the Arkansas River Fisheries Habitat Restoration Project and other related projects and for related administrative and other proceedings. SECTION 2 The cost and expenses incurred by the City for the services of Holland and Hart, LLP, including costs and the services of retained experts, not to exceed $350,000.00, shall be paid and funded by a transfer to Department of Public Works of $175,000.00 from the Sewer User Fund and $175,000.00 from the General Fund Contingency. INTRODUCED: March 25, 2002 By: Al Guru 1 e Cou Olperson APPROVED: President of the City Council ATTESTED BY: City Clerk o � 0 O 0 City of Pueblo OFFICE OF THE CITY ATTORNEY 503 N. Main Street, Suite 127 Pueblo, Colorado 81003 Telephone: (719) 545 -4412 Fax No.: (719) 545 -4301 Background Paper for Proposed RESOLUTION AGENDA ITEM # 3 DATE: March 25, 2002 DEPARTMENT: Law TITLE ISSUE A RESOLUTION AUTHORIZING THE EXPANDED ENGAGEMENT OF HOLLAND AND HART, LLP TO ASSIST THE CITY IN WATER RIGHTS LITIGATION INCLUDING OBTAINING RICD WATER RIGHTS TO SUPPORT THE ARKANSAS RIVER FISHERIES HABITAT RESTORATION PROJECT AND OTHER RELATED PROJECTS AND RELATED ADMINISTRATIVE AND OTHER PROCEEDINGS AND TRANSFERRING FUNDS FOR SUCH PURPOSE Should the City continue the engagement of special water counsel for the purpose of obtaining an adjudication of Recreational In- Channel Diversion (RICD) water rights to support the Arkansas River Fisheries Habitat Restoration Project and other related projects and proceedings? RECOMMENDATION It is recommended that the Council authorize continued retention of special water counsel for this purpose. BACKGROUND The City has been working with the U.S. Army Corps of Engineers on the proposed Arkansas River Fisheries Habitat Restoration Project for several years and a Project Cooperation Agreement between the City and Corps will be presented to Council shortly. 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 has filed a case 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 has been representing the City in the case pursuant to a prior authorization by Council. Pursuit of the RICD water rights has raised issues with respect to the Southeastern Colorado Water Conservancy District's proposed reoperation and enlargement of Pueblo Reservoir, and has required participation in numerous water cases filed by other parties seeking to transfer water upstream. Additionally, the City has been required to participate in administrative proceedings before the Colorado Water Conservation Board, present testimony to a Congressional subcommittee and has participated in extensive settlement negotiations. All of these efforts have caused legal and expert witness costs to substantially exceed original estimates. In order to continue the process of obtaining RICD water rights to secure a continued flow of water in the Arkansas River through the City, it is necessary to continue the engagement of special water counsel. FINANCIAL IMPACT This Resolution would authorize up to $350,000 for continued representation by special water counsel and water engineering consultants hired as experts by the special counsel. -2-