City Council Agenda and Packet 2019 02 05

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SUBJECT: 2019 WATER RIGHTS ADMINISTRATION AGREEMENT DATE: FEBRUARY 5, 2019 PAGE2OF2 The attached Agreement's scope includes four tasks described below: • Task A — water rights administration services for 2019 in an amount of $98,000. • Task B — Continuation of preparing the City's water accounting documents for an audit by CDWR, which is expected to occur in the near future. The audit preparation was started in 2014 and is anticipated to be complete within one to two years. The requested budget for this task is $20,000. • Task C — represents the City's interests, along with the Hill & Pollock Law Firm, in water court cases affecting the City's portfolio in an amount of $16,000. • Task D — Provides for review of water rights going up for sale, which the City could be interested in purchasing. The 2019 budget for this task is proposed at $6,000. The City of Louisville owns a complex water rights portfolio with an estimated value exceeding $110 million. These water rights provide the entire supply for the City's residents, businesses, visitors, and the City's own needs. This portfolio contains rights that place a variety of conditions on raw water diversion, including limitation on diversion dates and minimum stream flow requirements, as well as stream flow replenishment timing and locations. Additionally, the City's water rights vary seasonally, with excess water available in the spring and few diversions available in the winter. Administration of this portfolio requires thorough knowledge of Colorado water law, understanding of its application in daily operations, and a significant planning effort to ensure a constant water supply throughout the year. Supplemental tasks include daily monitoring of stream conditions, water right priorities, reservoir levels, City water demands, coordination with the Water Commissioner and City staff, as well as meeting reporting requirements set by the Colorado Division of Water Resources (CDWR). FISCAL IMPACT: The Agreement with Spronk is for $140,000 and will be paid from the 2019 operational budget, line item 501462-540910. This budget line item was established at $185,000 with the remaining $45,000 designated for the water conservation program. The 2019 budget represents no change from the prior 2018 budget for Spronk which was approximately 69% ($96,920) expended. RECOMMENDATION: Approve the Consulting Services Agreement with Spronk Water Engineers for water rights administration. ATTACHMENT(S): 1. Agreement between the City of Louisville and Spronk Water Engineers. CITY COUNCIL COMMUNICATION