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HomeMy WebLinkAbout1985 Ordinance No. 005I OROINI\ICE NO . 5 SERIES OF 198_5 __ BY /\U'l'HORl'l'Y COUNCIL BILL NO . 7 IN'l'ROOOCED BY COUNCIL MEMBER BILD /IN ORDINANCE APPROVING THE DISSOLUTION OF THE 'l'RI-CI'l'Y '!'RUST ORIG INALLY CREATED BY DENVER , ENGLEl'/000 /IND LITI'LETON FOR PURCHASE OF SENIOR W/\'l'ER RIGHTS ON SOllrH PLATI'E RIVER. WHERE/IS , the Tri-Ci ty Trust was orig inally created by Denver , Engle;.oocl and Littleton for the purchase of senior water rights o n the South Platte Ri ver between Ala'Tle:l a Avenue and the entrance to 1-later ton canyon in the 1950 's; and WHEREAS, Wnen Denver took over Littleton • s water sys tan , Littleton I s share \>.ent to the Denver t-Jater Board ; and WHERE/IS , Denver and Engle;.oocl now ag ree tha t i t ;.oul<l be mutually advantageous to dissolve the 'l'r 1st so that e ach can procee:l to use their respective water ri']hts as they see fit ; and , WHEREAS , t he En<J l ewood \'later and Sewer lloacd recommended at their Decanber 11 , 1984 meeting that Counci l approve the Tri-City Trust Disso lut ion as presented i n the attached report SLmTiary ; NO,ol, 11iEREFORE , BE r·r ORIJAINED BY '!'HE c 1•ry COUNC IL OF '11iE CITY OF ENGLEl'/000 , COLORl\00 , AS FOLLO;IS: Sect ion l. Ci ty Co un cil hereby approves the bas is of dissolution presentoo in the r e port entitled "Tri-City Trust Dissolution Denve r Wate r Depa rtmen t and City of Ehgle;.ood ." Section 2 . City Council a uthorizes the Kayc e to vote for the d1ssoluffon of the Tri-City Trust on the basis presented in the above mentioned report at the next meeting o[ the Tri-C i ty '!'rust . I ntroduced , read in full , and passed on first r eading on the 7th day of January , 1985 . '1,hl ished as a Bill for an Ordinance or, tl v , 9 '·11 day o f Ja nuar , 1985 . Read by title and passed on final r ead ing on the 21st day of J a nuary , 1985 . Published by t i t le as ordi nance No. the 23rd day of J a nuary , 1985 . Atte st : 5 , Series of 1985 , on ~,,{!Ot; ~neC Ot i s , Mayor I, Gary R. Hi gbee , e ,. offic io City Clerk-Tr easur e r of the City of Engle"'°od , Colorado , here by cer d fy t ha t the above and foregoing is a true , accurate and canpl ete copy of the Ordinance passed on final r eading and published by title as ordinance No . 5 , Series of i n s. --- I I 0 1 • I • TRI-CITY TRUST DISSOLUTION DENVER WATER DEPARTMENT AND CITY OF ENGLEWOOD by J . Patrick Qui nla n Edwin D. J ames DENVE R WATER DEPARTMENT Ronald K. Blatchley BLATCHLEY ASSOCIATES. IN C . Nove mber 1984 • • • TA BLE OF CONTENT S 1 . J NTRODU CT J ON IJ. RIGHTS ... JJ J. JV. Fi gu res Ta bles DIT CH CONSUMPTIVE USf A. Brown Dit ch ........ . B. Epperson Di tch ...... . C. Nev ada 01 tch . . . . . . . . D. La st Chance Di t ch Co . No . 2. E . Cit y Ditch DIVIS ION OF RI GH TS ....• Figure 1. Hi s t o ri c Str aigh t Lin e Di agram . Ta b le 1. Av era ge Poten t ia l Cons umptiv e Use Req uirement Fo r Six Cr o ps 1911 -19 50 Bro wn Dit ch .... Appe nd i xes Ap pe nd x A -Br own Study ... Appen d x B -Eppe r s on St ud y .. Append x C -Nevada St uay ... App e nd x D -Last Chance Stuoy Appe nd XE -City Study .. 4 7 10 12 1 7 19 22 23 Bei ge Orange Yello w Blue Red • TRI-C H Y TR ,ST DISSOLUTION INTRODUCTION The Tri-City Tr us t was created on June 3, 1956 by Denver , Englewood , and Littleton for the purchase of senior water rights on the South Platte Ri ver be ween Alameda Avenue and the entr anc e to Wate rton Canyon. Water r ight s were purchased by each city and delive r ed to the Trust, which held title to the '.g ht s . As the rights wer e delivered an accoun t wa s e stablished each city fo r value rece ived, and credit was given as a percent age (If tGta l assets. Additionally , a cash account was established • as a pu ~has i ng fund. Cities received credit for ca sh depositet' with the fund. No water has been purchased s ince Aug ust of 1962. • In 1963 an a udit , done by McM,· o.-i,<a ... x and Rodriquez, wa s mace of the assets ano the pe rcentage of o, •,,1,ni; :r each ci t y was established as f ollows. ~ Li ttletcn Den,er Englewoo c Percentage of Owner snip of Trust 's Ass ets 42.1 624 '7 .1180 20 . 7196 100.0000 • • • lr 1970 Denve r ac quired all wate r rights of the clly of Littl eton, inc luding its interest in the Tri-City Trust, when a total service contract was exe cu t ed. Since 1963 , several me e tings have been held to discuss the llissolution of the Tru s t and to distribute the asset s . A method of di s t ributing the asse t s has been difficult t o identify because of the complexity of eval uat.l ng the wate r right s for future use. Neither Englewood nor Denver was an xious to acquire a right that wa s of questi onable or uncertain usefulness. Another factor complic ating the distr ibution was the aw kwardness of Denver and Englewood potentially acquiring appr oximately 79% and 21%, respectively, of eac h right owned by the Trus t. Operationally, ea ch city wo uld much r ather work with one or tw o ditches than wit h five ditches which would actua lly entail the use of proport i'Jnate sh ares of ten different wate r rig',ts. On Decembe r 15 , 1983 the Tr ustees directed the eng i neer s of Den ve r an d Englewood t o determi ne the best method of trans fe r of the water right s of t he Tr ust . The engineers agreed that the mos t exp ed itious ana f ai r met~od available would be t o qua ntify the historic al conslJl'!)tive use of irr i ,ation water of the rights. Then di s ributi on would pr oceed based on a 79/21 spli t accordin~ to consurnt:t:ve us e of irriga t ior, wat e r , with he intention t hat the right s t hemselves would remain as whol e as poss i ble. The or,e ex ce ption would be if it were necessa ry t o divide one of t he r i ghts in orde r to make the entire distribut ion equal to an ov erall 79/21 spli . • • RIGHTS The Tri-City Tr ust, i n its short life , pu rchased rights in five different ditches, totaling 24.653 cubic feet pe r second (cfs). (See Fi gu r e 1 for a brief familiari zation of the ditch loc ations .) As of Fe brua r y 1984 , t he Tr ust has title to the foll owin g rights: Last Chanc e Ditch No. 2 Nev ad a Brown Eppe rson City Trust Ownership Shares or Inche s Oi version Rate 9. 712 shares 1.265 c fs 29.33 sha r es 7 .038 c fs 518 .10 inches 13.438 cfs 86 .40 inches 2.25 cf s 25.43 inches 0.662 cfs 24.653 cfs Ea ch of t hese rights has been used histori ca lly for irrigation , dor.,estic and municipal use, or all three . However, some of the record keeping has ber,n po or or none,.stent , and in the case of t ~e ditcn companies, it has bee n difficult, if not impo s sible , t o con ne ct actual shares or inches to a parcel of land, crops and a histor ic consunptive use nunbe r. Each ditc h has its o•n unique history and analytical problems . Hence, ea ch ditch was examined individually and ana ly zed acc o rdi~ o the most practical and accepta ble method. Each ditch is discussed in the following section . -3- • lt is recorrmended that 42.6 /JF of historic consurrp t.(ve use of • irrigation water for the City Ditch be used for dissolution or the Tri-City Trus t. DIVISIO N OF RI GHTS The cons umptive use of irrJgation water attributed to the Tr i -City Trust righ ts has been evaluated, and the f ollowing estimates of hist oric consum;itive use of irrigation water s hould be used for division of the wa ter ri9~ts presently owned by t he Tri-City Trust. Ditch Cons~tive Use in Acre-Fe et Per Year Ep person Oi tch 284 . 2 Brown Ditch 207 .4 Nevada Oitch 507.2 Last Chance Ditch 15 7. 5 City Ditch ~ Total 11 98 . 9 rt-~ Brown u!.tch should not be divided at t ni s time. The prOduc ti vit y o the Bro wn ~itch dep end s on revi ew ing the municipal and irrigati on uses of t he ditch or transfe r ring the his t oric consumpt ive use to Den ver ano Engle wood intak e structures. Neither propositi on coulo be accorrp lisheo withi n the time frame des i red for dissol ution o f t he Trust. For t his reason, the Tr ust sho uld be dissolved by placi ng the Brown Oitch in a 79 /21 joint ownersh i p by Engle wood and Denver and dividi ng the Last Chance, • Nev ada , City ano Eppcrson Oitch rights as follow s: -19 - • • • Pa rt icipant ~ De nver Ep pe rson Ditch La s t Cha nce Ditch Ne vada Di t ch Subtotal Englewood City Ditch Nevada Ditch Subtotal Total Proposed Ownership Hi s t oric CU in /lF /yr Share s/I~ 284 .2 86.40 inches 157 .5 9 .712 sha r es ~ 19 .92 shares 78 6. l 42 .6 25.43 i nches ~ 9. 41 sha r es 205.4 99 1. 5 ~ 2.25 Remarks entire ownership 1 . 265 e nti re owne rship ~ 8. 255 D.662 entire owne rship ~ 2.960 11. 215 This division wou l d be consistent with the 79/21 s~li t, ana it wo uld also have t he advantage ~f l eav ing the Epper son Ditch intac t. Engle wood owns the City Ditch he adga te and ditch do wn t o Har vard Gulch an d is de sirous of obtaining ad dit i on a l contract water . ( It should be noted that when t he s tructur e was deeded ov er to Engl ew ood in the contract dated Februar y 6 , 1970, Eng lewood was limited to obtaining a ma ximum of 2 .2~ c f s of cont r act wate r. The acquisition of the Tri -City Tr ust i rches •ill oring their holdings to 2.6522 c fs, requ iring a modificatio11 of lt.e ori ginal ag r eement between Engl ewood and Denver . ) This study has Quan tified t he hi storic consul1'!)tive use of i rri gation water which in our combined opinions would be transferaole i n water cou rt proc 0 edings . Many a ssun pti ons wer e mad e and gen erali zations utili ze d t o -20- • arrive at thes e nunbers, but t here is a dearth of data in this area and • what wa s available was us ed . lt is unlikely that material dJrferences would be found with more research. It ls reasonable to expect that significant funds would be required f or tra,,s fer or chang e 111 use, which i n our opinion would have the same end result as to allowable future consunpti ve use. It is our combined reconrnendation that the se nUTiber s be utilized for disso lution of, the Trust . -21 - • FIGURE 1 HISTORIC STRAIGHT LINE DIAGRAM PLA'fl"E RIVER 9 .5 c., >-;. ¢., "c ~ • I • I • Table I Average Potential Consumptive Use Requirement For Six Cro ps 191 1 -1950 Brown Ditch Average Number of Potential C. U. CrQR A~t~au~~ Y;~t§ IJf ~iiti! A,,;-F~iH /A,t~ Pa s tur e Gras s 20 3 l. 73 Alfalfa 70 39 l. 9 5 Orch ar d 8 4 l. 66 Su9a r Beets 20 11 l. 61 Garden (Small Ve g e t1h 'cs) 64 28 . 97 Cere als 61 31 J. 24 Average unit c~nsumptive use of irrigation wa ter l. 46 acr e -feet /Acre The ave rag e unit consumptive use requirement fer all the crops f o r the Brown Ditch analysis was calculated by add ing the entire consumptive use f o r all crops f o r the 40 -year study peri od and di vi d 'ng it by the total amount of ac res irri g ated in those 40 years . -73 - i I