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WILLIAMSON & HAYASHI, LLC <br />ATTORNEYS AT LAW <br />1650 38TH STREET <br />SUITE 103 WEST <br />BOULDER, COLORADO 80301 <br />DAVID S. WILLIAMSON <br />WILLIAM P. HAYASHI <br />MARY LYNN BENHAM <br />Telephone: 303-443-3100 <br />Fax: 303-443.7835 <br />MEMORANDUM <br />TO: <br />FROM: <br />DATE: <br />RE: <br />Brad Dallam <br />Dave Williamson <br />March 4, 2011 <br />Goose Haven Reservoir / Compensation Agreements with adjacent <br />property owners <br />In connection with the City's development of the Goose Haven Reservoir expansion, our <br />consultant has suggested that the City enter into compensation agreements assuring owners of <br />permanent structures within 200 feet of the affected area that the City would compensate the <br />owners of those structures for damages caused by the mining operations. <br />The Colorado Constitution, specifically including the TABOR Amendment (Article X, Section <br />20), prohibits municipalities from entering into contracts that would obligate the City to make <br />monetary payments in future years, unless the obligation is approved by the electorate. <br />Accordingly, the Colorado Constitution would prohibit an agreement by the City of Lafayette <br />that purports to obligate the City to pay damages in future calendar years. Such an agreement <br />may be executed by the City only if it is approved in advance by the electorate, or it is subject to <br />appropriations by future city councils.