Johnstown council approves $900,000 purchase of 15 Colorado-Big Thompson water units

Johnstown Town Council approved buying 15 Colorado-Big Thompson Project water units for $900,000, or $60,000 per unit, for the town's water portfolio.

The resolution says town management had been negotiating to add more of the units to Johnstown's water portfolio. It says buying additional water for the town's allotment and use would benefit its citizens, residents, property owners, businesses, developers and visitors. It also states that town regulations and policies allow the town to acquire Northern Colorado Water Conservancy District allotment contracts through purchases or developer dedications.

Councilmember Nick Bashford asked whether one unit equals one acre-foot of water. A staff member said the amount a unit represents is set each year by the Northern Water Conservancy District and varies, with historical averages of about 0.7 acre-feet per unit. The staff member added that the town gives a credit of 0.35 acre-feet on a unit if a development uses it, because of a 50% foreign water carriage fee for moving it through the home supply system.

Councilmember Dee Anne Menzies said she had asked that the purchase be moved off the consent agenda. She said she considered it significant and wanted the funding commitment taken up at a regular meeting for transparency. "I have no problem with the purchase," Menzies said, adding that she supports it.

In answer to Bashford, a speaker confirmed the $60,000-per-unit price is about market rate.

The council approved buying the units from Johnson-Taylor Family Properties, LLLP. It authorized the town manager to sign the purchase-and-sale agreement and other necessary transaction documents, subject to town attorney approval and Northern Colorado Water Conservancy District requirements.