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HomeMy WebLinkAboutWater Board - Minutes - 08/25/1970August 25, 1970 MINUTES OF THE MEETING OF THE WATER BOARD Held August 2S, 1970, at 3:30 P.M. in the City Manager's Office. Present: President Norman Evans, Fred Feit, Harvey Johnson and Owen Moore. Also present.were City Manager Coffey, Director of Public Works Liquin, Directo of Finance Charlie Cain, Superintendant of Water and Sewer Eddie Hilgenberg, Assistant City Attorney March, Jr., and Ward Fischer. Also Morton Bittinger and Bill Hansen of Morton IV. Bittinger and Associates. The meeting was opened by the City Manager being offered 60 shares of North Poudre Irrigation Co. Water stock and he asked permission to purchase same at $Q44VA per share with a rent -back agreement for a term of 10 years. Permission was granted by those present. The City Manager said he would up date everyone present on the progress of the sub -water district involving the six cities. He stated that the District Judge has set bond for each on of the officers at $10,000 and that the District would be controlled by the Northern Colorado Plater Conservancy District, however, the sub -district would appoint their own officers. Word had reached him that Washington had approved the sub -district and were well pleased by the method of informing the district, and that the Northern Colorado Water Conservancy District was the first water district of its type to be formed and now that the sub -district within the Northern Colorado Water Conservancy District is the first of its type, and was assured that the district would get the support it needed. Ward Fischer presented the following memorandum, which was read: North Poudre Irrigation Company Wellington, Colorado Gentlemen: You have suggested that we make an investigation on be- half of the .City of Fort Collins with a view toward the making of some suggestion concerning the acquisition by the City of the water rights and facilities of the Michigan Ditch and Joe Wright Reservoir. We would be willing to make some offer based upon.a cash purchase price, but you indicated that some exchange of water right for water right might be more appealing, and we .have accordingly studied it from that viewpoint. Some of the water rights of the City have similarity, in some e reo)C s, t; your rights 7n the Michigan Ditch ciU J0'_ Wright Reservoir. These rights, repres2n tad by stock in the Ar- thur Ditch, the New Mercer Ditch, and the Larimer County No. 2 Ditch, are similar to the Michigan Ditch in that they are cap- able of producing a fair amount of water but at a point of little use to the owner. As a result, their usefuliness is limited in the same manner as yours. Conversely, however, our rights could • August 2S, 1970 be of real value to you, and I believe your rights could be of real value to us. A trade of ownership would seem to benefit both, not only because of increased available water but also to remove the threat of future abandonment raised by the new Water Rights Bill. We.would like to suggest (subject always to the City Council approval) that the North Poudre transfer to the City its rights in the water rights and facilities of the Michigan Ditch and Joe Wright Reservoir in exchange for the transfer by the City to North Poudre of substantially all of its stock in the Arthur, the Nev., Mercer and the Larimer County ditches (reserving to the City only the minimum stock required by company regulations to allow it to run Horsetooth and other supplemental waters to its golf courses, cemeteries, etc.). As stated, this suggestion is prompted by your past ex- pressions of interest in a water trade. If you would prefer to discuss other alternatives, of which there may be many, we would b'e happy to discuss them with you. Yours truly, Ward H. Fischer • There was considerable discussion on converting water and that the water owned by the City that has the least value, should be traded for water that would be more advantageous. One of the biggest proble,r.s the City has is storage facilities. It was discussed whether to build additional -reservoirs in the high country or in the lower part. Mr. Fis '_1 r indicated that North Poudre is still interested in the 10,000 acre foot rental agreement. It was agreed that Ward Fischer and Arthur March, Jr., pursue the possibility of purchasing the water in the above memo and work with North Poudre on the rental agreement. The following memo was presented and read at length: Josh Ames Ditch Company C/o Don Pavel Fort Collins, Coloroa'o 80521 Gentlemen: The folloviing is not a proposol, and is not mode In consultation evith or by a L'thoriry of the City Council Of Ilie City of Pori Cal l ins'. It is, howaver, my vl vvs on the rnUttBr Discussed be Nl'een us, and an attempt to commence some form of neoo— tiations V/hich iniOht result In a con iact. I , • • August 25, 1970 Collins should such transfer occur. An additional Iimitation, of course, would be that waters could be diverted only during the regular irrigation season. 1134 acre feet of water could be provided, during the irrigation season, accord- ing to 6ittinger, by a continuous flow during such period of 4.65 cubic feet of water per second of time.: We would propose that this amount be transferred upstream to the City. pipeline. In other words, although the City might buy the entire water right of 17.97 c.f.s., it would be expected that it would be allowed to transfer to the City pipeline only 4.65 c.f.s. of this amount, and the balance would be declared abandoned to the river, to assure non -injury to junior appropriators. It was felt by me that a fair price might be $20,000 per cubic foot per second of the 4.65 c.f.s. we believe to be transferrable. 4.65 c.f.s. at $20,000 per cubic foot per second equals $93,000. The proposed conditions of the sale'end trensfer would be 'hot the City of Fort Collins would assume the burden and expense of obtaining a change of point of diversion from the Josh Ames Ditch to the pipeline of the City of Fort Collins, or such other point as it might find to be desirable. The City of Fort Collins would make the proposed trans- fer on the basis of actually transferring 4.65 c.f.s., as above indicated, and abandoning the remainder. The City of Fort Collins would diligently attempt to transfer the full 4.65 c.f.s., but in the event that less than that amount were ultimately allowed to be trcrisferrec then the purchase price of the water would be reduced accordingly. That is to say that if the entire 4.65 c.fs. were allowed to be transferred, the price would be $93,000; but it less ware allowed, then the price would be reduced in the ratio of $20,000 per cubic foot 0 par `., cor,o . • . August 25, 1970 a At your request a discussion was had concerning the possibilities of the acquisition by the City of Fort Collins of the water rights of the Josh Ames Ditch Company. These water rights consist of 17.97 cubic feet of water per second of time of priorit/ No. 25 in Water District No. 3, on the Cache La Poudre River. 1 would like to propose, for discussion purposes, and would be willing to recommend based upon the facts as now known by me to the City of Fort Collins, that the City of Fort Collins purchased from the Josh Ames Ditch Company this total water right for a purchase price of $93,000. Water, rights of this nature are extremely difficult to evaluate, and I think it only fair to give you the basis of my thinking in arriving at the above figure. I am attaching a computer sheet showing the ditch diversions of the Josh Ames Ditch Company for recent years, that is to say the years 1951 through 1968. The average diversion during that period has been 1550 acre feet of water per year. It is obvious from some computation, and also generally known throughout the water community, that the Josh Ames Ditch Ccmpony has not been officiclly diverted its full decree for many, many years past; and there is no doubt in my mind but that the Water Court would decree, whenever the issue was raised, that certain of the waters had been abandoned. Our engineering studies, conducted by Morton Bittinger and Associates, indicate that although the average diversion is 1550 acre feet per year, the median historic diversion during the same period has been 1320 acre feet per year, and that, considering consumptive uses in relative terms, on equivalent municipal diversion of 1134 acre feet of water per year could be allowed without injury to junior appropriators. Any transfer of water from one point of diversion to a new point of dlva;slon roust, under ti'1e lcw, be acc0..pi iSh9d Only under such cond'ltlsns as wil l assure the junior rights on the river do not suffer any injury. Therefore I am confident that a limitation of 1134 core feet, in diversion, will be imposed upon the Cihy of Fort 0 August 25, 1970 It would be necessary that the Josh Ames Ditch Company, by proper stockholder • action, be authorized to transfer the water right itself, rather than have the City purchase the outstanding shares. The reason for this is that there are too many outstanding shares which may or may not be abandoned or lost, and the City of Fort Col I ins cannot o,sume the burden of either determining the validity of claims to lost shares, or of continuing to serve one ortwo dissident shareholders who refuse to sell. However if the Josh Ames Ditch Comi by appropriate stockholder action, should sell its complete water right, there it would be a valid action and there would be no question about the City of Fort Collins or the remaining stockholders having to continue the maintenance of the ditch or the furnishing of water to any small minority stockholder. Naturally the Josh Ames Ditch Company would have to take the burden of distributing properly the consideration paid, and indemnifying the City of Fort Collins in this regard. 1 wouldbe ,clad to discuss this matter with you further at your convenience. Yours truly, Ward H. Fischer After some discussion, it was agreed that the City writes off many acre feet of water each year. For Fischer and March to cartinue and work towards establishii a program of exchanging or trading water. The Director of Public Works stated that he had received a letter from a Hydrology Engineer that indicated that if something was not done at Filter Plant No. 2, there was a possibility of considerable damage being don /tod the type valves that are installed. He indicated that the valves had been removed, eliminating the possibility of a blowup, as stated in -the letter. This is on the 36" water line, pressure within the line is 125 pounds, traveling at the rate of 75 feet per second. He had spent $1 300.00 to remo_�e the valves and estimated. it would cost $50 000 to install aquI>n---nt to control. There was ac-t'iially nothing wrong i•ath tho plant that it was built according to specii7ications and the contractor is not liable. Will ha:e the problem corrected next spring.- The $50.000 would be to install a needle • • August 25, 1970 valve between the plant and our.storage supply. The subject of replacing all the meters within the City was again discussed. It was decided that it was not feasible to go this route. If allowed, consumption of water would be reduced. The City Manager stated if there was a wet year, the revenue would be drastically cut, and doubted if the entire city would ever be metered. The City now has a surplus in water and sewer funds, and plans are to rebuild our present filter plants, by enlarging, build addditional storage and assist in the Windy Gap project. In the near future rates will have to be raised, that the City needs a new rate study and requested a report from Bittinger $ Asso. to water judication. With nothing further to discuss, the Board adjourned. Secretary/fe��/� rL J