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HomeMy WebLinkAbout07158ORDINANCE NO. 7158 AN ORDINANCE AUTHORIZING THE EXPANDED ENGAGEMENT OF HOLLAND AND HART, L.L.P. 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 _ With the consent of the City Attorney pursuant to Section 6 -7 of the Charter, Holland and Hart, L.L.P. is hereby retained to assist the City in water rights litigation including obtaining recreational in- channel diversion water rights, 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, L.L.P., including costs from the services of retained experts, shall not exceed $150,000. SECTION 3_ Funds in the amount of $65,000 from the General Fund Reserve are hereby appropriated for said services and shall be placed in Project CP0139. SECTION 4_ Funds in the amount of $85,000 for said services shall be transferred from the Sewer User Fund and placed in project CP0139. INTRODUCED June 14. 2004 BY Michael Occhiato Councilperson PASSED AND APPROVED June 28, 2004 J • IL Background Paper for Proposed ORDINANCE AGENDA ITEM #— o DATE: June 14, 2004 DEPARTMENT: CITY MANAGER'S OFFICE LEE R. EVETT, CITY MANAGER DAVE GALLI, DEPUTY CITY MANAGER TITLE AN ORDINANCE AUTHORIZING THE EXPANDED ENGAGEMENT OF HOLLAND AND HART, L.L.P. 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 the construction of the Arkansas River Legacy Project. In order that the project benefits be protected against future transfers of Arkansas River water out of the basin and changes in diversions, which would deplete the flow below the minimum flows for the project, the City has been pursuing the necessary means to obtain a recreational in- stream diversion right (RICD) as well as participating in water cases brought by the City of Aurora and others. Holland and Hart, L.L. P. has been representing the City with these recreational flow rights and other water cases pursuant to a prior authorization by City Council. 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 cost to substantially exceed original estimates. With the adoption of the Regional Intergovernmental Agreement (IGA), the City must now move forward to resolve the cases listed on Exhibit 3 of the Regional IGA, including the RICD case. In order to continue the process of obtaining RICD water rights, it is necessary to continue the engagement of special water counsel. RECOMMENDATION Approval of the ordinance. FINANCIAL IMPACT This ordinance will appropriate up to $65,000 from the General Fund Reserves and transfer $85,000 from the Sewer User Fund for continued representation by special water counsel and water engineering consultants hired as experts by the special counsel. To date, $650,000 has been appropriated for special water counsel and water engineering consultants.