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HomeMy WebLinkAboutWater Board - Minutes - 01/18/19720 0 • January 18, 1972 MINUTES OF THE MEETING OF THE WATER BOARD Held January 18, 1972, at 4:00 P.M. in the City Manager's office. Present: Ward Fischer, Norman Evans, Fred Feit and Owen Moore. Also: City Manager Tom Coffey, Director of Public Works Charles Liquin, Superintendent of Water and Sewer Ed Hilgenberg and Director of Finance Charlie Cain. President Ward Fischer presented the following proposal: The City might consider the acquisition of nine (9) shares of the capital stock of The Water Supply and Storage Company. This stock would apparently be available for purchase at Twenty Two Thousand Dollars ($22,000.00) per share. Water Supply and Storage stock pro- duces, historically, 108 acre feet per share; and with the enlarge- ment of the Long Draw Reservoir, this should increase by a minimum of six acre foot per year. The Water Supply and Storage Company may be receptive to a pro- posal.from the City of Fort Collins for the use of the waters repre- sented by such shares along the following lines: 1. The City will acquire nine (9) shares of the capital stock of The Water Supply and Storage Company at Twenty Two Thousand Dollars ($22,000.00) per share. 2. The City will pay all assessments levied on such shares. 3. The City may use the water only under one of two alterna- tives: A. Alternative Number l: `a. Water Supply and Storage will each year arrange an exchange with the North Poudre Irrigation Company or other water user having rights of use of Colorado Big Thompson waters stored in Horsetooth Reservoir, equal in volume to 80 per cent of the total waters produced for each year by the stock of The Water Supply and Storage Company. b. Ok waters in excess of thisOmount (20 per cent i 0 of the water produced in each year by the stock) shall be the property of The Water Supply and Storage to be used in such manner and at such times as the company shall desire. This is an exchange for the com- pany's arranging the exchange of Paragraph a. c. The Horsetooth water may be used by the City at such times and in such manner as the City may choose. d. If this arrangement becomes impossible of perfor- mance (because of inability to make the exchange required) the parties will determine some alternative to reach the same results, that is to say, that the company obtains the use of 20 per cent of the water without cost to it and the City obtains use of 80 per cent of the water on call. B. Alternative Number 2: The concept of Alternative Number 2 is to allow the City to make a first use of the new foreign or transmountain waters which will result from the enlargement of Long Draw Reservoir and the lining of the Grand River Ditch. This water will, although being first usedby the City, be successively used; and the Water Supply and Storage Company will receive all of the waters produced by it, even though first used by the City, plus an additional amount to the end that both parties prosper by the arrangement. The contract would recite: a. That the waters of the Grand River Ditch are not naturally tributory to the Cache La Poudre River. b. That the waters are subject to a succession of uses by exchange or otherwise to the extent that the volume of such waters can be distinguished from the volumes of the streams into which such waters are introduced. c. That the City has facilities which will enable it to distinguish the volume of such waters from the volumes of other waters d. 'Ot the project of the comPey will enable it to make available certain foreign waters which have not heretofore been available for a succession of uses. e. That any water newly made available may be first used by the City under contractual arrangement. The contract would then provide that: a. To the extent legally permissible, waters developed from kransmountain sources by The Water Supply and Storage Company may, at the option of the City, be first used by the company. It is contemplated here that waters in excess of the average diversion of about 17,200 acre feet might be so available. The City's first use of such water, upon such election, would be limited to use during such times as the Larimer County Ditch of The Water Supply and Stor- age Company is running water to the stockholders of the company, or at times when an indirect exchange can be arranged. b. The waters will remain the property of the company but may be first used by the City, with The Water Supply and Storage Company retaining full dominion over such waters nonetheless. Upon the completion of the first use by the City of Fort Collins, the waters will be discharged at the sewage plants of the City upon the order of the company and will be utilized by the company, by exchange, at the headgate of the Larimer County Ditch or at some other point where an exchange can be arranged (including Joe Wright Reservoir). C. To the extent that the use by the City consumes any portion of such waters (which it will) the City will make up the deficiency from other water sources to the end that the Water Supply and Storage will ultimately have delivered to it at the Larimer County Ditch headgate (or into one of The Water Supply's reservoirs) an amount.of water equal to the amount of water delivered by it under this agreement to the City of Fort Collins. d. As compensation to the Company for allowing this first use, the City will, in addition to delivering an amount of water equal to thOmount first delivered too City by the Water Supply and Storage Company, an amount equal to 10 per cent more water • than that delivered to the City. The waters represented by the nine (9) shares of stock may.be used by the City for providing this addi- tional 10 per cent. e. As an alternative to the furnishing of this addi- tional water, The Water Supply and Storage Company might elect to receive compensation for arranging this exchange in the amount of Dollars ($ ) for each acre foot of water for which it is allowed to make the first use. f. To the extent.that the succession of uses herein contemplated can not legally be made, then alternative 1 will be the only alternative available to the City. 4. The City will agree, at the option of the company, to ex- change its Water Supply and Storage Company stock for units of the . Colorado Big Thompson project on a ratio which will produce an equal amount of water for the City of Fort Collins. This provision would allow 'the company to retain the stock in the company should one or more of its shareholders desire to make an exchange of Big Thompson water for Water Supply stock. 5. The City would grant to the company a two-year option to purchase the nine shares of water at Twenty Two Thousand Dollars ($22,000.00) per share plus 6 per cent per annum from the date of the purchase by the City. This option would allow the company to investigate the desirability of itself acquiring these shares. In the event that this alternative an option is elected by the company, then the contract would provide that a lease agreement between The Water Supply and Storage Company and the City would be contemplated, • the details of which would be worked out during this two-year period. • Ja•ry 18, 1972 • After review of this proposal, Chuck Liquin stated that he had a call from the stock holders mentioned in the proposal, offering stock to the City for the price of $25,000 per share. He said he made an offer somewhere in the neighborhood of $22,000. After considerable discussion on the quantity of water involved, storage facilities, points of diversion and usage, it was suggested that this matter be referred back to Ward Fischer, since there is plenty of time for the City to determine which of the alternatives it will take, and to report back when convenient. The City Manager stated that at the present time the City now owns 22767.468 acre feet of water, this is equivalent to 7.4 Billion gallons. This quantity of water should last the City, at the present growth, until 1990. It was the consensus of opinion not to refuse any water that is advantageous to the City, also suggested that news be spread that the City will not accept any of the Arthur Ditch CP New Mercer Irrigation Co, stocks. Mr. Liquin stated that the developers have been informed by letter that the City will accept only certain water stocks with their annexations, sale and development. There being nothing further to discuss, the Board adjourned. ary •