Monte Vista approves lease of stored water to Rio Grande Water Conservation District, keeps storage for depletion replacement

Monte Vista — The Monte Vista City Council approved a water‑lease agreement on April 16 to lease a portion of the city’s stored water at Rio Grande Reservoir to the Rio Grande Water Conservation District while retaining storage for municipal needs and depletion replacement.

Staff reported the city holds about 155.49 acre‑feet of fully consumable water stored in the reservoir. Under the proposed agreement staff said the city would dedicate 8.03 acre‑feet to replace injurious stream depletions from municipal well use (as required under the city’s augmentation plan), retain 17 acre‑feet in the city’s storage account and lease about 130.46 acre‑feet as excess storage to the district for its use.

Rob (city staff) explained that the lease generates revenue for the city while ensuring the city’s depletions remain covered. He told council the arrangement was consistent with the city’s augmentation obligations and prior compact‑compliant practices. “We still have in storage enough for next year’s depletions plus some extra,” staff said, adding the city typically keeps two years’ worth of depletions in storage under current agreements.

Council discussed whether retaining the storage was prudent and whether leasing would hurt municipal supply; staff replied the retained storage and the 8.03 acre‑foot dedication meet depletion needs while leasing the surplus benefits farmers and other district water users. The council moved and approved the contract by voice vote.

The agreement will be executed by the city manager pending final review; staff said proceeds from the lease are returned to the city and that the arrangement has been coordinated with the district and court decrees referenced in the presentation.