PROJ00124

• Contract/PO #: C153394
• Contractor Name: Wellington, Town of
• Contract Type: Loan
• Water District: 1
• County: Larimer
• Bill Number: SB 81-439
• Loan Projects - Doc Type: Feasibility Study

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RESPONSE TO PROPOSAL FOR DOHESTIC RAW WATER SERVICE

TO:

The Board of Trustees of The Town of Wellington

FROM:

The North Poudre Irrigation Company

DATE:

June 14, 1982

I was absent from the last North Poudre Board
Meeting, but since that time, I have met with Duane Aranci,
the Vice President of The North Poudre Irrigation Company,
so we could give you the Board's thoughts.

Of course, the Town and North Poudre expect to
have any agreement reduced to a writing that was acceptable
to both of us, so these terms can be only a general response
to the engineer's proposal.

I am following the same numbered paragraphs in the
Proposed 'ferms.

1. It would be acceptable to receive 53 shares
of stock in The North Poudre Irrigation Company in return
for granting the Town a perpetual supply of water.

2. The North Poudre Irrigation Company would
agree to deliver 275 acre feet annually. This is giving
credit for approximately 5.25 acre feet per share, and
rounding the number off at 275. This is more than the 231
acre feet proposed.

3. It is acceptable for the Town to pay an
annual amount equal to the total yearly assessment on a
share of North Poudre stock multiplied by the 53 shares
transferred to North Poudre.

4. For all water used in excess of 275 acre
feet, the Town would pay North Poudre on the basis of an
agreed-to charge per thousand gallons used.

It would be done on a formula. Regarding the
formula, North Poudre believes the charge must include the
annual amount of the Northern Colorado Water Conservancy
District charge for the delivery of domestic water, which is
presently $6.25 an acre foot, plus an allowance for contin-
gencies and administrative expenses of 7 percent.