PROJ00432 App Letter - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I Agenda Item lOe. January 24, 1996 2 DISCUSSION (a) Purchase of Water Shares: If the CWCB approves the revision to Guidelines covered in agenda item 9, it will be possible for the CWCB to provide financing to purchase water rights or shares, A draft Feasibility Study has been completed by McLaugWin Water Engineers, and excerpts from the study are attached, The study indicates the water purchase would be to supply current water needs for the Town, During the period 1950 to 1985, there were only 3 years (1965, 1983, and 1984) when the Town's 1/10/1866 water right was in priority for the entire year. During the driest of years (1954), the Town's water right was out of priority for 193 days. The study uses the dry year (1954) to calculate the amount of augmentation water needed for the existing population of approximately 1000 people, That amount is 8.63 ac-ft consumptive use, per year. 1,5 shares of Farmer's High Line (6/30/1860 appropriation date) would provide about 10.5 ac-ft consumptive use in a dry year. There is an added issue of water rights for the Georgetown Lake. The Town is under obligation to obtain a storage water right for the lake in accordance with an agreement with the Division of Wildlife dating from 1969, but has not done so, (A copy of the agreement will be provided at the CWCB meeting,) The Town is also under obligation to make up for evaporation losses from the lake, estimated at about 90 ac-ft per year. It is clear that 1.5 shares of FHL would be allocated to resolving existing water needs far the Town, Farmer's High Line shares are currently available for municipal use, and are owned by a number of front range communities. The purchase price is supported by an opinion letter, a copy of which is attached, There are a total of 1090 shares of FHL. Acquisition of 1,5 shares by the Town will not have a significant impact the market price. A single share of FHL sold for about $120K in 1990. The single share market price is currently about $160K, The price increase between 1990 and 1995 was the result of improved economic conditions in Colorado, particularly along the front range, (b) Collateral: The Town of Georgetown has a separate water enterprise which receives revenues from its water customers, The CWCB can take a collateral interest in this stream of revenues. The Town's Water Enterprise will own the water shares that are purchased with this loan. These shares can be pledged as additional coJlateral. A letter from the Town's Attorney, concerning collateral, will be provided at the CWCB meeting.