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Phare stated that the City paid at peak for Goodhue water at $1000 a share and that he <br />had heard that some shares sold for $250 a share. He stated that some junior water rights <br />that do not help communities meet their drought supply requirements have actually gone <br />down in value. It was the most recent transaction of a junior water right that Phare w/ts <br />aware of. <br /> <br />Davidson asked Phare to give a brief synopsis of why the junior water rights are less <br />valuable than the more senior water rights. <br /> <br />Phare stated that in Colorado water is appropriated agriculturally by a first in-use basis of <br />direct flow water rights adjudicated, which all these rights are. They have adjudication <br />dates starting in 1860 and going into the 1990's. These water rights have adjudication <br />dates putting them into the 1870' s. This means they typically supply their best water <br />during June, and have seasons where the hydro-graph (the river flow) is at their highest <br />state. Because the stream flow in Colorado has quite a peak in June, there are a number <br />of ditches that take the gush of snowmelt and apply it to agricultural lands. They have a <br />season of May to June and into July. The Howard Ditch rights run from April through <br />October. If you have a drought period and don't have the gush of snowmelt, these rights <br />have the potential to yield little, if any water. Analysis over the last 40 years shows the <br />junior rights yielded nothing during the 50's drought, a benchmark for yields in this <br />basin. <br /> <br />Davidson stated that the CBT units currently being purchased could yield about 10-acre <br />feet of water during a drought. Davidson stated the reasons to sell these water rights were <br />that they no longer fit the needs of the City for dry years, and that the revenue derived <br />could allow further water rights acquisitions of a drought resistant water source. <br /> <br />Sisk stated that with CBT is going up in price, would it be possible for Grace Mar to <br />acquire CBT water rights and trade them to the City of Louisville in exchange for the <br />water rights in question. He asked about the availability of CBT water. <br /> <br />Phare stated he believed another contract for CBT would be available next month. He <br />stated that the Grace Mar Subdivision is not in the Northern Water District and would <br />have to go through the inclusion process. The rules state we can not sell water outside <br />our boundaries. <br /> <br />Levihn moved the Council approve Resolution No. 16, Series 2000, to buy and sell water <br />rights, seconded by Mayer. <br /> <br />Mayer added a friendly amendment that Public Works Director, Tom Phare, be instructed <br />to ascertain an appropriate price for the water rights and advise Council. <br /> <br />Sisk suggested that the matter be continued for two weeks for that very purpose. <br /> <br />9 <br /> <br /> <br />