Agenda Date: 11/03/2026
Subject:
Title
Resolution 81-2026: Expressing support for and directing staff to take next steps regarding formation of a public authority to operate the city’s jointly owned wastewater treatment facility
Body
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From: |
James L. Becklenberg, City Manager |
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Prepared by: |
James L. Becklenberg, City Manager |
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Reid Betzing, City Attorney |
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Pieter Van Ry, South Platte Renew Director |
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Presentations: |
Pieter Van Ry, South Platte Renew Director |
PURPOSE:
Based on information presented at the August 11, 2026, study session, does the City Council support taking the next steps to form an authority to operate the City’s jointly owned wastewater facility?
LONG-TERM OUTCOME(S) SERVED:
High-Quality Governance
DISCUSSION:
In 2021, the City of Littleton contracted FCS Group to conduct an analysis of potential models of transitioning Littleton’s ownership interest of SPR to reduce financial obligations as well as business and regulatory risk. FCS Group presented their analysis and ranking of the identified options to City of Littleton and City of Englewood Councils on March 8, 2022, and November 14, 2022, respectively.
Both cities directed SPR to continue the governance analysis. In January 2024, SPR contracted the engineering firm Hazen to conduct the second phase of the governance analysis, in conjunction with the legal firm Cockrel Ela Glesne Greher & Ruhland, P.C. (CEGR Law) to perform a legal analysis. The results of this work were presented to both City Councils in August 2026 and identified the formation of an Authority as a viable alternative governance model to the current structure. The analysis explored the organizational and financial impacts of creating an Authority and provided a framework for establishing an Authority should the cities choose to move forward.
Study Sessions with both cities were held in August 2026 to discuss the findings of the SPR governance analysis, as well as a Joint Council Study Session in August 2026. At the August 11, 2026, study session, Council provided verbal direction for staff to continue working toward the formation of an authority. This resolution simply documents that support and direction in the same format for both communities.
Consideration of a resolution of support is the first in five identified steps required to transfer operational (and perhaps ownership) of the plant, to respond to and resolve the legal concerns faced by the cities related to ownership and operation of wastewater treatment facilities. The five formal actions required by City Council are anticipated to be:
1. Adopt a resolution of support
2. Adopt an ordinance approving a contract with the City of Littleton regarding formation of an authority
3. Approve a motion appointing board members to the authority.
4. Adopt an ordinance approving an operating agreement with the City of Littleton and the authority regarding operation of the facility
5. Decide the land usage/ownership issue and take necessary action: the authority will require at least extended possessory rights to the land and improvements in order to secure financing for anticipated capital improvements and unfunded mandates
a. City Council may enter into a long-term lease
b. City Council may transfer ownership of its interest in capital equipment.
In addition to the formal steps, staff would also commence public education about this issue with completion of the process and feedback regarding public input at the time Council considers the next formal step, which would likely occur in early 2027.
BACKGROUND:
SPR is co-owned by the Cities of Englewood and Littleton (Cities) and is governed by the 1973 and 1982 Agreements between the Cities of Littleton and Englewood, Colorado for Joint-Use Wastewater Treatment Facilities,’ also known as the 1973 and 1982 Joint-Use Agreement.
These agreements, written by both Cities, govern the construction, operation, and maintenance of SPR. They clarify how each City should be charged for fixed and variable costs; allocate capital investments for the SPR facility’s operation; outline the role of the Supervisory Committee in the daily operational management of the facility; and clarify the City of Englewood’s role as the administrative partner that provides SPR with basic business services. The 1973 and 1982 Agreements remain the foundation of the partnership with subsequent signed Memorandum of Understandings further refining how the Cities operate under the 1982 Agreement. Separately, the Cities establish the sewer rates and fees, with input provided by SPR, and manage the agreements and billing for each of the 19 connector districts that are part of SPR’s service area.
Prior Actions or Discussions
March 8, 2022: SPR and consultant presentation to City of Littleton Council on preliminary options for alternative governance models.
August 11, 2026: SPR and consultant presentation to City of Littleton Council on subsequent study and recommended authority option.
August 26, 2026: Joint Council Study Session on annual plant operations, 2027 budget, and potential next steps for authority governance model.
FISCAL IMPACTS:
N/A for further developing the governance model.
STAFF RECOMMENDATION:
Approval of Resolution 81-2026, expressing support for formation of a public authority to operate the City’s jointly-owned wastewater treatment facility, with direction to staff to continue developing the model and associated documents and complete appropriate community outreach about the potential change and implications for Littleton.
ALTERNATIVES:
1. Decline to approve the resolution, with direction to staff to research additional questions or different governance models.
2. Decline to approve the resolution, with direction to cease discussions with Englewood about alternative governance models at this time and continue status quo operating model.
PROPOSED MOTION:
Proposed Motion
I move to approve Resolution 81-2026 expressing support for and directing staff to take next steps regarding formation of a public authority to operate the city’s jointly owned wastewater treatment facility.