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Media Release Release Date: June 17, 2002 Rosann Doran Broomfield asks termination or renegotiation Today, Broomfield sent a letter to the Mile High Water Company board of directors asking for a termination or re-negotiation of the contract that commits Broomfield to supply water to residents in rural Boulder and Adams counties. Since the city is in its fourth year of a drought cycle, all avenues are being explored to insure fair and adequate water supplies for Broomfield citizens. The contract dates back to 1971. Broomfield is currently supplying water at city rates to an estimated 391 members of the Mile High Water Company, about 300 of whom are outside the city. The 1971 contract, revised in 1979, outlines an agreement for Broomfield to supply water at in-city rates to Mile High customers in exchange for their promise to annex to Broomfield when asked to do so. In 2001, Broomfield asked Mile High members to annex. A majority of members who were obligated to do so did not agree to annex. As a result, Broomfield was unable to annex all of the Mile High system’s service areas as originally contracted. In the letter, Mayor Karen Stuart notes, "Broomfield is currently providing water at city rates to areas outside the city whose residents refused to annex to Broomfield. This is not a good arrangement for Broomfield, nor is it fair to Broomfield residents." Renegotiating the contract could resolve the issue, she said. The letter also serves as notice of default under a section of the agreement. Broomfield asserts that "the Mile High Water Company has failed to keep or perform the conditions imposed upon it" and requires that water service be discontinued immediately to 88 Mile High customers who refused to annex when requested. According to the letter, Broomfield intends to seek a court order allowing it to discontinue water service to Mile High within 60 days. The contract provides that Broomfield can stop supplying water with 30 days’ notice, but, according to Stuart, "Broomfield is willing to give Mile High additional time to seek a new water source or renegotiate the agreement." -30-
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