The City of Billings has reached a proposed settlement of water rights between the U. S. Department of Interior, U.S. Bureau of Indian Affairs, U.S. Bureau of Reclamation, and the Crow Tribe.  The City of Billings began the legal process of adjudicating water rights approximately 30 years ago. The City of Billings' present average daily water production is 33.4 cubic feet per second (cfs).  The peak daily demand flow rate is 83.6 cfs.  The proposed water rights average daily water use at the current water demand would provide for a population of approximately 500,000 residents. The proposed water rights will allow the City of Billings to provide water for a population of approximately 250,000 residents on a peak demand day.  The community's average per capita water use is trending downward.  If that trend continues, the adjudicated water rights will provide for significant population growth in the future.  In order to secure the proposed water rights, the City Council must formally agree to the allocation. 

The proposed water right allocations are as follows: 

Priority Date	CFS
1887	1.93
1895	5.42
1905	2.30
1906	162.35
Total	172

The City Council may:

• Approve the water rights settlement; or,
•  Do not approve the water rights settlement.

There is no direct financial impact to the City regarding water rights, but the continued uncertainty of the community's water rights and potential reduction can affect the city's growth potential.

Staff recommends that Council approve the water rights settlement.  The water rights settlement must be signed by an attorney.  Therefore, the Council must direct the Mayor to have attorney Rodd Hamman sign the water rights settlement.