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I I I I I I I I I I I I I I I I I I' I This arrangement would also include allowing the Town to use a reasonable amount of land necessary for its facility and access to that land. It would not include an allowance for any extra land that might be heeded if the treatment plant was to be expanded in the future. y- The cost per share would be the average fair market value of the North Poudre stock based on sale prices during the previous 12-month period, as determined from records wnich would be kept by The North Poudre Irrigation Company. North poudre would instruct the secretary to verify a Gelling price with either the Buyer or Seller of the stock and to keep a record of this information. Both of us would then be relying on this information in determining the fair market value for the prior 12 months. It would not be possible to know that we have accurate information on every sale because we would have to rely on the honesty and willingneGs to disclose the sale price, but this still should be a reasonable way to determine the fair market value. The interest rate should be the actual in- terest rate for farm and ranch loans, as made by the Federal Land Bank Association. The Land Bank Association does not add in a loan commission charge or points, but you are required to purchase stock. The stock which you must pur- chase must be considered to know the amount of the average interest rate. The charge per thousand gallons of water above the 275 acre feet should be determined annually, and I think this could be done so that the Town would have the information and time to set its budget for the next year. If there was a dispute as to the accuracy of figures being used, we would need some way to resolve it. Perhaps we would want to consider arbitration with each party appointing one disinterested arbitrator and the two Q=bitrato~s ap- pointing the third arbitrator. 5. The terms of the agreement could be perpetual as to the 275 acre feet. North Poud~e would also be willing tu make a perpetual comm,itment for an additional 225 acre feet, with no additional ch~rge to be made for the commitment. If a commitment is desired from North Poudre for an additional amount of water up to 1500 acre feet per year so there would be a right to call for 2000 ac~e feet per year, then North Poudre believes some additional money should be paid for a commitment that ties up an additional 1500 acre feet. North Poudre proposes a $6 per acre foot annual charge for any commitment it must make in e~cess of 500 acre feet, but no commitment charge is to be paid on water that is actually used.