Council approves intergovernmental agreement with Louisville to swap water deliveries tied to Marshall decree

Broomfield City and County Council approved a resolution authorizing an intergovernmental agreement (IGA) with the City of Louisville to exchange consumable water deliveries that help both jurisdictions meet legal augmentation obligations tied to water‑rights changes.

Background and purpose Water Utilities Director Ken Rutt and Water Resources Superintendent Mark Lohrey explained the agreement as a settlement‑anchored arrangement arising from Broomfield’s recent Marshall shares change case, which converted 157 Marshall ditch shares to municipal uses under a water‑court decree. The decree requires Broomfield to make replacement releases to an unnamed tributary of Coal Creek (downstream of Sienna Reservoir) to avoid injuring other water‑rights holders; Louisville, an opposer in the Marshall case, raised concerns about year‑round delivery capability and whether a series of landscaped/amenity ponds in the Anthem area (the ‘‘Anthem Ponds’’) were properly decreed under state water law.

Under the IGA, Louisville will, as needed, supply water from its wastewater treatment plant outfall on Coal Creek to meet Broomfield’s augmentation obligations; in return Broomfield will make deliveries from its Big Dry Creek recovery facility to help Louisville meet its obligations on Big Dry Creek. Each party’s deliveries are limited to 150 acre‑feet per year; monthly caps and emergency provisions let either party suspend deliveries during severe drought or other force‑majeure events. Every two years the parties will net the exchanges and the party receiving a net benefit will pay the delivering party at Broomfield’s reuse rate (the current reuse rate cited by staff is approximately $492 per acre‑foot). The initial IGA term is five years with automatic renewals unless terminated by either party.

Anthem ponds and longer‑term water‑rights work Staff told council the Anthem Ponds are city‑owned impoundments that, in the Marshall change case process, were identified as features that cause stream depletions and therefore need to be addressed under state water law. Broomfield agreed in settlement to address compliance for those ponds by February 2030 (staff corrected an earlier transcript error and confirmed the target year is 2030). Options include securing a substitute water supply plan (a temporary, administratively approved measure) or obtaining a permanent decree through state water court; the latter can be costly and would require engineering and legal work. Staff estimated substitute‑plan costs in the near term at roughly $5,000–$10,000 per year for engineering and legal support, with a full court decree potentially costing in the low hundreds of thousands, depending on opposer participation and case complexity.

Council questions and fiscal impact Council members asked whether the IGA would need further court approval (staff said the stipulation with Louisville was adequate for settlement and the IGA itself does not have to be filed back in water court), whether the agreement would be subject to change if reuse rates change (staff said the reconciliation payment will follow Broomfield’s reuse rate updates), and whether the IGA creates a financial exposure. Staff said Broomfield has multiple options to meet its replacement obligations (Community Ditch releases during irrigation season, Sienna Reservoir releases, the new IGA, and a future Broomfield Reservoir planned in the CIP for completion by 2037). Because Louisville has fewer options to meet its Big Dry Creek obligations, staff said Louisville may rely on the IGA more frequently. The agreement includes a modest planned budget allowance of $20,000 per year in the water enterprise budget to cover administrative or transactional costs associated with this and similar agreements.

Vote and next steps Council approved the resolution authorizing the IGA unanimously. Staff will finalize and execute the IGA, begin the two‑year reporting cycles for exchanges, and continue work to address the Anthem Ponds’ water‑rights status before the February 2030 deadline.

Ending Staff said they will provide periodic updates on the Anthem Ponds workplan, any substitute water supply plan filings, and progress on the long‑term approach for each pond; council asked for transparency on legal and engineering costs tied to any future decree process.