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Council discusses leasing strategy for newly acquired water rights; prefers annual bids
Summary
City staff briefed the council on recently acquired water rights and recommended leasing excess rights to generate revenue until municipal use is needed. Council favored annual sealed bids with bidders responsible for transfer or temporary‑change fees.
City staff told the Gunnison City Council on Feb. 5 that the city recently purchased water rights and outlined the administrative steps required to place that water into municipal culinary supply.
Staff explained the process would require segregation and change applications for municipal use; the city is not yet using its full existing water allotment. To generate near‑term revenue and avoid leaving the rights idle, staff proposed leasing the rights to local irrigators. Staff described possible arrangements ranging from single‑year leases to multiyear terms; council members expressed a preference for annual leases (one‑year agreements) or shorter terms with renewal options, so bidders and farmers retain flexibility in drought years.
Council and staff discussed practical administration: using a sealed‑bid process this season; advertising the availability; and making bidders responsible for any temporary change or transfer applications and associated fees required to place water where the bidder needs it. Staff also noted temporary change applications typically revert the water to its original point of diversion after the agreed term, reducing long‑term transfer costs for the city.
Council asked staff to advertise and proceed with a sealed‑bid process for annual leases and to coordinate outreach with local ditch companies and irrigators. The item remains an administrative and implementation task for the city.
