HomeMy WebLinkAboutWater Board - Minutes - 02/24/1971i
February 24, 1971
MINUTES OF T11E MEETING OF THE WATER BOARD HELD February 24, 1971, at 4:00
o'clock P.M. in the City Manager's office.
Present: Dugan Wilkinson, Fred Feit, Owen i,'oore, City Manager Coffey, Director
of Public Works Liquin, Director of Finance Cain and Assistant City Attorney March,
Jr., and Attorney Ward Fischer.
The following memorandum was presented and read at length:
Mr. Ronald H. Strahle
Attorney for The New Mercer Ditch Company
First National Bank Building
Fort Collins, Colorado 80521
Dear Mr. Strchle:
At your suggestion, I submit herewith in writing my suggestions concerning the proposed
change in point of diversion of certain waters represented by the capital stock of the New Mercer
Ditch Company. This submission is prompted by the consumation of a contract between the City of
Fort Collins and the North Poudre Irrigation Company, wherein it is contemplated -het certain
waters reoresented by the City's ownership of the capital stock of your company should be transferred
to North Poudre, in exchange for certain water rights which North Poudre has deeded to the City.
•This exchange is promped by the fact that the City of Fort Collins is presently unable to
make immediate beneficial use of a majority of its waters as represented by capital stock in your
company. Wi-,ile the City has been pleased that the waters could be and have been used
temporarily by other stockholders, yet it is impractical that this should forever continue.
As 1 have indicated to you, the City of Fort Collins will make complete studies and intends
to insure that the proposed transfer will damage neither the rights of junior appropriators in general,
nor the rights of the stockholders of the Ditch Company. I would like to advise you at a later date,
when our studies are completed, as to proposed conditions to insure no injury to the river as a whole;
but, this letter concerns merely my ideas concerning the second subject, that is to say, the
avoidance of injury to stockholders of the New Mercer Ditch Company.
Specifically, what is pro?used is that stock assessments would be continued to be paid,
notwithstanding the fact that th'a waters represented by the stock upon which assessments are paid
is not delivered at the hecdgate of he ditch. This concession, apparently not required by law,
would insure the ditch company the sums necessary to continue adequate maintenance of its ditch.
Secondly, we propose that only 90%of the stock presently owned by the City be assigned
to North Poudre. The City would retain 10%, would continue -o pay the assessments, but -would
not use the water represented by such stock. Such waters would be left in the ditch, for prorato
use by other stockholders and would compensate for loss or shrinkage occasioned by the transfer.
The only benefit to the City would be that its continued stock ownership would enable it to run
other and supplemental waters in the ditch like any other stockholder.
Looking in to the far, far, distant future, I suppose that it could be contemplated that at
some remote future date, the City of Fort Collins or other cities, might grow to the extent as to
cause complete urbanization and a cessation or irrigation of all lands now served by the ditch.
Should this ever occur, and the ditch abandoned, then the City would like, of course, to be
allowed to at that time recover its 10% of retained waters and move it to some other point.
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*February 24, 1971
• This proposal is an attcrnpt upon the part of tho City to submit a plan acceptable to your
company, and avoid controversy, litigation, or even misunderstanding. We do not believe that
the City has any legal obliCation to so limit i% use or transfor of water rights, ona accordingly
this latter should not be construed as an admission of any liability whatsoever in thi s regard.
It is an offer made in good foith and we hope that it will be considered in like manner.
Respectfully,
Arthur E. March, Jr., Assistant City Attorney
Ward H. Fischer, Special Counsel
After considerable discussion relating to trading of water and the amount of
water that would be maintained by the City for it's use on the Golf Course, cemetery,
etc., it was unanimously agreed that the two Attorneys continue meeting with the
stock holders of the Ditch Companies affected in this proposal and after the meetings,
make a report to the Board on the final decision.
Motion was made by Richardson, seconded by Moore, that the Board Adjourn. The
Chairman put the motion which was unanimously adopted and the Board adjourned.
• Secreta y