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• <br /> MUSICK, WIUdAMSON. SCMWAR1Z <br /> LEAVEtvWOR H & COPE, P.C. <br /> ATr ANEYS AT LAW <br /> IS MANHATTAN DmYI —Wi I <br /> P.O.BOX 4s» <br /> aovwa.COI O a0304 <br /> JOHN Q MAMA =MOM($3)4993950 GUP4WQ M WMNIS OM <br /> MINIM Y'Inumas10i4 (cow) I-NO 333 2140 Ill I GISMO AMOK <br /> ALAN L tI►v rn April 13, 1979 =MOOD P.O.j OM SIMI <br /> A Cost Txurncea(303)931113 <br /> sUL MAN HAaABON <br /> WI1LIAA1 T SMrn R. <br /> KEVIN L PATIKZ <br /> hours E LOCHHBAD <br /> Mr. Leon A. Wurl <br /> City Administrator <br /> City of Louisville <br /> 749 Main Street <br /> Louisville, Colorado 80027 <br /> Re: Water Rights Contracts <br /> Dear Leon: <br /> I have two water rights contracts which I would like the City <br /> Council to consider at the meeting on April 17, 1979. Before <br /> describing the individual agreements, I would like to offer some <br /> comments to the Council on the state of today's water rights market, <br /> especially with respect to market prices, and hopefully assist them <br /> in reviewing not only these two agreements but the many we will be <br /> considering in future months. <br /> Enclosed with this letter is a tabulation I have prepared comparing <br /> costs of water rights in various drainages along the front range. These <br /> figures are based upon recent sales or offers to sell. It is sometimes <br /> difficult to compare water rights from different ditch systems because <br /> the yields and costs per share vary so greatly. I have computed all <br /> of these rights on a cost per acre foot basis, based upon historic <br /> yield for irrigation purposes, so that they may be compared one to <br /> one. <br /> There is no uniformity concerning shares in different mutual ditch <br /> or reservoir companies. There is no law which requires the number of <br /> shares to ba uniform and in actual practice the number varies dramatically. <br /> For example, the Cottonwood 52 Ditch has only 20 shares and therefore <br /> the yield per share is almost 80 acre fast. The Howard Ditch has 100 <br /> shares outstanding and the average yield per share is 25 acre feet. <br /> The Goodhue Ditch has over 4200 shares outstanding and the average yield <br /> per share is only 1/2 acre foot. <br /> Therefore, making the conversion from cost per share to coat per <br /> acre foot makes comparisons much simpler. As the tabulation reveals, <br /> the present day coat of senior water rights in the South Boulder Creek <br /> and Boulder Creek drainages is significantly less than the cost of <br /> senior water rights in the surrounding drainages. Although the cost <br /> of our water rights has been escalating rapidly, we have not yet <br /> experienced the severe competition from other municipal and industrial <br /> users which has occurred in the other drainages. Lafayette, Erie, and <br />