The city of Cortez is leasing out part of its unused water supply to the Dolores Water Conservancy District, to go to local irrigation needs.
Right now, the city has at least 1,000 acre-feet of unused municipal and irrigation water, said Phil Johnson, public works director, at a City Council meeting and work session May 26. By leasing it out, the water can go to local farmers or ranchers in need of more irrigation, in exchange for a payment of about $33,170 to the city.
“Sounds like a win-win situation here,” said Cortez Mayor Mike Lavey during a virtual work session prior to the regular meeting.
The City Council unanimously approved a one-year water lease. The city’s contract is directly with the water conservancy district, which will take care of collections and water allotments for end users.
The Dolores Water Conservancy District is the operator of the Dolores Project, which develops water from the Dolores River for irrigation, municipal and industrial users. Water is stored primarily at McPhee Dam and Reservoir.
Cortez maintains about 2,300 acre-feet of water per year as part of the Dolores Project.
The district first discussed the possibility of water leasing with the city in 2015, Johnson said. The council at the time agreed it was a good idea as long as the water was unneeded and stayed with local ranchers or farmers.
According to a staff report, Johnson said the DWCD has “a list of agricultural users that typically need more water for irrigation.”
The first year of leasing water, Cortez was unable to fulfill its lease after a “miracle May,” Johnson said, but they did participate in another lease in 2018. Ken Curtis, general manager of the DWCD, had approached the city about a potential lease once again, Johnson said.
The city pays $108 per acre-foot for the water stored in McPhee Reservoir – regardless of whether or not it is used – meaning that Cortez pays about $108,000 to store 1,000 acre-feet of water. In exchange for leasing the water, the city will receive $33.17 per acre-foot, coming out to $33,170 for 1,000 acre-feet of water.
“For us to recoup that $33,000, I think is a win for us and a win for the locals,” Johnson said at the work session.
Based on data from the past few decades, Johnson and Rich Landreth, water treatment plant superintendent, believed Cortez would sustain its lower water usage.
“We have the ability and the capacity to lease out this 1,000 acre-feet for this year without impacting our supply for the city,” Johnson said.
He added that there is no water carryover from one year to the next, and so there is no way to save water for a possibly dry winter in 2021.
