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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.