HomeMy WebLinkAbout06962ORDINANCE NO. 6962
AN ORDINANCE AUTHORIZING THE EXPANDED ENGAGEMENT OF HOLLAND AND HART,
LLP TO ASSIST THE CITY IN WATER RIGHTS LITIGATION AND RELATED ADMINISTRATIVE
AND OTHER PROCEEDINGS AND APPROPRIATING FUNDS FOR SAID PURPOSE
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1
Holland and Hart, LLP is hereby engaged to assist the City in water rights litigation
including obtaining Recreational In Channel Diversion water rights to support the Arkansas River
Legacy Project, other water litigation, 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, shall not exceed $200,000.
SECTION 3
Funds in the amount of $200,000 from the General Fund Reserve are hereby appropriated
for said services.
INTRODUCED March 24, 2003
BY Al Gurule
Councilperson
APPROVED:
President of City Council
ATTEST:
C ityr
PASSED AND APPROVED: April 14. 2003
Background Paper for Proposed
ORDINANCE
3(4
AGENDA ITEM #
DATE: MARCH 24, 2003
DEPARTMENT: CITY MANAGER'S OFFICE
LEE R. EVETT, CITY MANAGER
DAVID J. GALLI, DEPUTY CITY MANAGER
TITLE
AN ORDINANCE AUTHORIZING THE EXPANDED ENGAGEMENT OF
HOLLAND AND HART, LLP TO ASSIST THE CITY IN WATER RIGHTS
LITIGATION AND RELATED ADMINISTRATIVE AND OTHER PROCEEDINGS
AND APPROPRIATING FUNDS FOR SAID PURPOSE
ISSUE
The City of Pueblo has a contract with the U.S. Army Corps of Engineers for
construction of the Arkansas River Legacy Project. The project will 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 are designed to allow kayaks and rafts to pass and the project
would establish a boating course over about 2,000 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
been pursuing the necessary means to obtain a Recreational In -Stream
Diversion Rights (RICD) as well as participating in water cases brought by the
City of Aurora and others.
Holland and Hart has been representing the City with respect to these
recreational flow rights and other water cases pursuant to a prior authorization by
City Council. Pursuit of the Recreation In Channel Diversion (RICD) water rights
has raised issues with respect to the proposed reoperation and enlargement of
Pueblo Reservoir and has required participation in numerous water cases filed by
other parties seeking the transfer of 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 the 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.
RECOMMENDATION
Approval of the ordinance.
FINANCIAL IMPACT
This ordinance will appropriate up to $200,000 from the General Fund Reserves
for continued representation by special water counsel and water engineering
consultants hired as experts by the special counsel. Up to $60,000 of this
$200,000 could be reimbursed to the General Fund Reserves from the Sewer
User Fund Reserves. This may be done at a later date depending on the
availability of funds in the Sewer User Fund Reserve. Due to the plan for the
defeasance and payment of sewer refunding revenue bonds, series 1996, it is
not advisable to use Sewer User Fund Reserves at this time.