HomeMy WebLinkAboutminutes.council.19910906Suecial Meeting Aspen City.. Council September 6, 1991
Mayor Bennett called the meeting to order at 12:10 p.m. with
Councilmembers Richards, Pendleton, Reno and Peters present.
RUEDI RESERVOIR
Councilwoman Pendleton told Council Ruedi Water and Power Authority
voted unanimously Wednesday night if there is to be a lawsuit, it
will only challenge the second 10,000 acre feet on the basis that
an EIS has not been done. John Musick, city's water counsel, told
Council the Colorado Water Conservation Board is the state wide
water coordination agency that has responsibility for, among other
things, minimum stream flows. The Water Conservation Board can
hold water rights for minimum stream flows. The Water Conservation
Board was being asked to accept a sublease from the fish and
wildlife service of a lease from the Bureau of Reclamation for the
second 10,000 acre feet. BOR built the reservoir and holds the
water in the reservoir, does not hold the decrees, and the fish and
wildlife service is requesting this additional 10, 000 acre feet for
experimental purposes this year. The fish and wildlife does not
have the authority to actually see that the water makes it was
downstream as minimum stream flows and has to sublease the leased
water to the state of Colorado water conservation board.
The state considered the lease in July and approved it subject to
final documents. Musick requested, on behalf of the city of Aspen,
Pitkin County and Ruedi WAPA, that they do 3 things; that they
continue the consideration of the lease, and not to enter into the
lease and also to work in conjunction with Aspen, Pitkin County
WAPA and other valley entities to work out a comprehensive long
term solution to the problem. Musick said his clients are strongly
supportive of the endangered species act and of the environmental
issues to be achieved. Musick said this is a piecemeal solution,
and is an experiment without any sound biological necessity, and
this experiment could cause severe problems to the recreational
value and to the generation of hydroelectric power on the reser-
voir. Musick told Council he gave the Board a copy of a study
which shows at least a $2 million of recreation revenues to the
local merchants as well as a loss of tax revenue and power
generation. The Board voted to continue this issue to their
meeting in September. Musick told Council individual board members
have told him they would vote for the lease unless he could show
them that his clients were working in good faith to try and resolve
this matter and that the BOR is unwilling to continue the long
history of cooperation.
Musick reminded Council in the late '70s Aspen and Pitkin County,
together and separately, brought a number of lawsuits on environ-
mental issues and prevailed. In one of the lawsuits, the city and
county traded a supreme court victory for concessions out of Ruedi.
The concessions went both ways, the city had to honor to do things,
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Special Meeting Aspen City Council September 6, 1991
which they have faithfully done, and the BOR is now breaching this
trust. Musick said Ken Salazar, director of natural resources, has
to support the endangered species and use of water from some
source.
Mayor Bennett asked whether the city's goal is to prevent the sale
of 10, 000 acre feet or to find that 10, 000 from some other source.
Councilwoman Pendleton said this 10,000 acre feet is setting a
precedent for the BOR of being able to help themselves to water out
of Ruedi anytime. Councilwoman Pendleton said she would like to
work out a program to take care of everybody's interests.
Councilwoman Pendleton said a lot of down valley entities have in
applications for round two water sales. The Ruedi homeowners
association is in round one water sales, so they could not
participate. Two weeks will give the city time to do some
lobbying.
Musick told Council in each of the cases in the 70's a stipulation
was entered into related to various rivers and Ruedi. These
involved every party to sit down and work out the issues. There
was originally one objective for Ruedi, flat water recreation. At
that time, the public utilities regulatories act was passed and
allowed municipalities with utilities to secure some advantage with
generation of hydroelectric power. The city and county said they
wanted flat water recreation but they also wanted to generate power
out of Ruedi. Musick told Council 32,980 barrels of oil or 9,000
tons of coal would be diverted from being consumed by developing
Ruedi hydroelectric power. The city and county secured the first
FERC license to generate power as a joint entity on a Bureau
facility. The net result was the formation of the Ruedi Water and
Power Authority, which was a valley-wide entity to preserve and
protect Ruedi, to take some of the power revenues and build other
hydro facilities for the environmental purposes, and to buy water
rights for preservation of minimum stream flows throughout the
valley. Musick said every entity that had any say so on these
issues got together, cooperated and agreements were entered into.
For the last 12 years, all entities have been working together in
harmony. Musick said in the last couple of years the wildlife
service has been pressing to have water made available for
endangered species of fish in the 15 mile reach. Musick told
Council there are reasons for the wildlife service wanting the
water; there are reasons for other entities diverting the water,
they have other objectives and want to build other storage
facility, which they cannot do unless there is augmentation of the
stream.
The city and county and WAPA have attended the meetings and have
said as part of the agreements, they have supported the second
round water sales within a narrow, defined limit. Musick said the
city, county and WAPA are being asked to support an additional
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Special Meeting Aspen City Council September 6, 1991
5,000 acre feet each from Ruedi and Green Mountain Reservoir.
Musick told Council the reason he did not sue on the first 10,000
acre feet is that he was finessed; Musick said he thought everyone
would honor their word. Musick said the entire 10, 000 acre feet is
being taken from Ruedi. Musick said the city and county have a
better lawsuit over the lack of compliance with all the agreements.
Musick said these cases would be time consuming and expensive. The
two proposed law suits attack different issues; one attacks the
lack of environmental compliance by the Bureau of Reclamation. The
case on the enforcement of decrees attacks the water conservation
board. This will not stop the Bureau of Reclamation from taking
the water.
Musick told Council he would rather see the city spend money on
physical facilities that better the life for citizens of the
valley, to provide clean, low cost hydroelectric power or minimum
stream flows. Musick suggested Council weigh the alternative of
using some water in the WAPA' s trust fund and the city/county trust
fund to acquire water rights for use for endangered species,
minimum flow augmentation as well as protecting the head water
streams and use for hydropower generation in the future. Musick
suggested Council allow the water releases this year as long as
they promise not to do this in future years and to stop do it
entirely as the new long term solution is arrived at. Musick said
the key is that as soon as the long term solution is done, they get
out of Ruedi.
Musick told Council there is a lot of water on the market; however,
it is expensive in this valley. Musick suggested Council may want
to line irrigation ditches to stop seepage as opposed to purchasing
water rights. Musick said the city can also lease water out of
Ruedi and leave it in the reservoir. Musick told Council Ruedi
serves a valuable purpose for a lot of small communities and well
owners up and down the valley. Musick said some amount of water
should be released for the communities down valley. Musick said if
he were successful in a lawsuit, it would take water from people
who have no other alternative for water.
Mark Fuller told Council the Board feels like they are being
responsive to the city and county and have done everything that
they should have done to balance the concerns of Ruedi. Fuller
pointed out there was a study done over the last weekend on use of
Ruedi. This study showed that a fee could be charged for use of
Ruedi.
Musick told Council of the 102, 000 acre feet, the first 28, 000 acre
feet is committed for replacement purposes; the next 77,050 acre
feet is round one water sales; the next 43,560 acre feet is gone
when the round two water sales are executed and needed. Musick
said if the city were to acquire some of the 43,560 acre feet, it
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Special Meeting __Aspen City Council September 6. 1991
could be left in Ruedi. Musick said the agreement on Ruedi that
has been honored so far would allow Ruedi to be bone dry in several
years out of 20 in a maximum use. Musick said there are many years
the reservoir would be at less than recreational level with full
industrial development of the western slope. Musick said Council
may rather buy 10,000 acre feet somewhere else than Ruedi.
Councilman Peters said part of the reason that Ruedi water is so
cheap is that the cost of the dam has been attributed to recre-
ational uses. Councilman Peters suggested if recreational uses are
destroyed, then the water should cost more. Musick said there is
a statute on the books that Congress directed the Bureau to recover
approximately $8 million in 1968 dollars plus accrued interest at
3.026 percent; that is all the Bureau is obligated to recover.
Musick said the reason this issue is here is that other diverters
want to build diversion facilities and they cannot unless they
augment minimum stream flows and they don't want to build that
capacity into their reservoirs, they want to use the cheaper water
out of Ruedi. Councilwoman Pendleton said Council needs to spend
the next two weeks lobbying on behalf of Aspen's interest.
Councilman Peters said he favors litigation as it is more straight
forward and involves less variables.
Musick told Council the release of the water this year will cause
some loss of hydroelectric power generation capacity and some
recreation on the reservoir. Musick said the Bureau of Reclamation
has not dealt with the city fairly and honestly. Councilwoman
Pendleton said she would like to use the next two weeks to see how
far the city can get with the Water Conservation Board and the BOR.
Councilwoman Pendleton said the city and county will be paying for
any litigation. Musick pointed out at least one community may join
the lawsuit on the other side. Council requested Musick draft a
letter to sent to the Denver Post for their op-ed page to rebut the
article "Glitz versus Fish". Council suggested a committee of
Councilwoman Pendleton, Wayne Ethridge, and Bill Tuite meet and
formulate a policy and give Council recommendations on the best,
most effective strategy for solving this problem.
Councilwoman Pendleton moved to adjourn at 1:15 p.m.; seconded by
Councilwoman Richards. All in favor, motion carried.
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Kathryn Koch, City Clerk
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