PROJ00001

• Contract/PO #: C153168
• Contractor Name: Delta, City of
• Contract Type: Loan
• Water District: 40
• County: Delta
• Bill Number: SB 77-35
• Loan Projects - Doc Type: Feasibility Study

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Cost of Procurement

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In reviewing the City's records of water rights on Grand
Mesa, information relating to the apparent original cost of procure-
ment of the City's various holdings on Grand Mesa was extracted where
available for inclusion in this report. A record of council minutes
from 1896 through 1965 relating specifically to council decisions on
water matters was also helpful in compiling the list of the costs as
shown in Table 11-3. The list is not a complete record of all of the
City's previous transactions in acquiring water rights on Grand Mesa.
It is included here only so that when and if an appraisal of the
City's holdings on Grand Mesa is desired, councilmen will have a
convenient starting point from which to make further investigations.

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The annual audits prepared for the City also list the fixed
asset value of the water department which includes, among other
items, water rights and other property on Grand Mesa. The City of
Delta has traditionally not taken depreciation on this property. The
fixed asset value for those items included in the most recently
published audit which have a direct bearing on water supply are
listed in Table 11-4.

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The City of Delta at sometime in the future, may find
it advantageous to convert to a water source supplied entirely
by the Gunnison River. If such a decision is ever made, the
City of Delta may also find it economically desirable to sell
their holdings on Grand Mesa. A strong market already exists
for the property and accompanying water rights located in the Tongue
Creek area. In light of potential coal development in the region, it
is anticipated that the market for land and water in the area will
become stronger in the future. It is our opinion that the present
site of the former White Ranch will become especially desirable by
land developers interested in establishing a planned community
development. These projects have become popular in resort areas and
along the front range where outside interests can provide financial
support. Such a development would need the Grand Mesa water rights
presently held by the City in order to provide water to some
specified level of development.

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The money generated by the sale of City property on Grand Mesa
could be used as partial payment for development of other alternative
sources of supply which are better suited to meet the future demands
of the City of Delta.

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