Ordinance 2021-1804 - Laserfiche WebLink

Home Browse Search

AGREEMENT FOR PURCHASE AND SALE OF WATER STOCK THIS AGREEMENT for Purchase and Sale of Water Stock (the "Agreement") is made and entered into as of this 2nd day of March 2021 (the "Effective Date"), by and between the City of Louisville, a Colorado municipal corporation, party of the first part (hereinafter referred to as the "City"), and CK H2O Ventures, a Colorado limited liability company with an address of 14570 Clay Street, Broomfield, CO 80023, party of the second part (hereinafter referred to as "CK Ventures"). The City and CK Ventures are hereinafter referred to collectively as the "Parties" or individually as a "Party." RECITALS WHEREAS, the City operates and owns a municipal water supply and sewer system that serves more than 6,000 accounts within the City's service area. The City's water supply includes a proportionate share of water entitlements of the New Coal Ridge Ditch Company (the "Ditch Company"), a mutual ditch and reservoir company organized pursuant to § 7-42-101, et seq., C.R.S.; and WHEREAS, as of the Effective Date, it is the belief and understanding of the City from the Decree described and defined below that the Ditch Company owns direct flow water rights and shares in various ditch companies on South Boulder Creek, which are summarized in Exhibit A; and WHEREAS, pursuant to the By -Laws of the Ditch Company as of the Effective Date, all water entitlements of the Ditch Company are to be divided pro-rata among shareholders for each share of stock owned; and WHEREAS, the City owns 227 shares (10.73%) of the 2,116 shares of capital stock issued and outstanding in the Ditch Company (hereinafter referred to as the "Water Stock"); and WHEREAS, by decree entered in Case No. 80CW451, Water Division No. 1 (the "Water Court"), the City changed the type, place, and manner of use of the water rights represented by the Water Stock from irrigation to all municipal purposes and irrigation (the "Decree"). A copy of the Decree is attached as Exhibit B to this Agreement and incorporated by this reference; and WHEREAS, at the time of the Water Court's entry of the Decree, the water rights represented by the Water Stock included the City's 10.73% entitlement to the Ditch Company's direct flow water priorities (the "Direct Flow Water") and the City's 10.73% entitlement to the storage rights attributable to the Ditch Company's interest in the Baseline Reservoir system (the "Storage Water Rights"); and WHEREAS, pursuant to the terms and conditions set forth in the Decree, the City's proportionate share of the changed Direct Flow Water authorizes it to divert up to 319 acre-feet per year of fully consumable water available to the Ditch Company, and a yield from the Storage Water Rights equivalent to 16.12 shares in the Baseline Reservoir system; and Page 1 of 13