HomeMy WebLinkAbout20174182RESOLUTION
RE: APPROVE LETTER AGREEMENT FOR PROPOSED CHANGE APPLICATION
CONCERNING 3.75 RURAL DITCH SHARES AND AUTHORIZE CHAIR TO SIGN -
RURAL DITCH COMPANY
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with a Letter Agreement for Proposed Change
Application Concerning 3.75 Rural Ditch Shares between the County of Weld, State of Colorado,
by and through the Board of County Commissioners of Weld County, and the Rural Ditch
Company, commencing December 13, 2017, with further terms and conditions being as stated in
said letter agreement, and
WHEREAS, after review, the Board deems it advisable to approve said letter agreement,
a copy of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Letter Agreement for Proposed Change Application Concerning 3.75
Rural Ditch Shares between the County of Weld, State of Colorado, by and through the Board of
County Commissioners of Weld County, and Rural Ditch Company be and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said letter agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 13th day of December, A.D., 2017.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COL RADO
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ATTEST: ditiwo ..lo:g4.
Weld County Clerk to the Board
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APPR
puty Clerk to the Board
y Attorney
Date of signature: 1'a If91(7
Julie A Cozad, Chair
Steve Moreno, Pro-Tem
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Barbara Kirkmeye
2017-4182
EG0074
LYONS GADDIS
ATTORNEYS & COUNSELORS
Scott Holwick
sholwick(cr�lyonsgaddis.com
303-776-9900
December 6, 2017
VIA EMAIL: wes(c�licglaw.com
Wes Knoll, Esq.
Lawrence Jones Custer Grasmick LLP
5245 Ronald Reagan Blvd., Suite 1
Johnstown, CO 80534
Re: Rural Ditch Catlin bylaw application by Central Colorado Water Conservancy District
Dear Wes:
This letter is in response to the October 17, 2017 submission to Rural by Central and Weld
County ("Co -Applicants") of a proposed change in use of 3.75 Rural shares. In accordance with
its Bylaws, Rural approved Central and Weld County's proposed change application at its
December 7th Board meeting, subject to the following seven (7) conditions:
1. Central shall execute the attached Second Amended Operating Agreement For
Changed Company Shares with the Company to ensure that the Company's operations
aren't adversely affected by the changed use of water;
2. Co -Applicants agree to prosecute the application in water court on the basis of a parcel -
specific analysis;
3. Co -Applicants acknowledge that the Company may enter a statement of opposition to
monitor the water court proceedings and to act as necessary to protect the Company in
the event that any objector or the Court seek to impose terms and conditions which may
adversely affect the Company's operations;
4. Co -Applicants further acknowledges that, during the adjudication of the water court
application, they will immediately disclose to the Company any such proposed terms and
conditions which may adversely affect the Company's operations to the extent Co -
Applicants are aware of such effects;
5. Co -Applicants agree to cooperate and collaborate with the Company, to the extent
practical, so that Co -Applicants and the Company may together seek to exclude any
such terms and conditions which may adversely affect the Company's operations and if
necessary, will enter into a common interest agreement with the Company to facilitate
such cooperation and collaboration;
6. Co -Applicants additionally acknowledge and agree that, to the extent the Company
actively participates in the water court case, Co -Applicants will reimburse the Company
for the Company's reasonable expenditures of costs (legal and engineering) up to the
amount described in Article 13 of Rural's Bylaws; and
7. Co -Applicants agrees that the Company may remain an active party in this case until it
determines that the version of the decree which will be entered by the Court is non -
injurious to the Company and its shareholders.
LYONS GADDIS KAHN HALL JEFFERS DWORAK & GRANT, PC
a 3 515 Kimbark Street 2nd Floor PO Box 978 Longmont, CO 80502-0978
363 Centennial Parkway Suite 110 Louslville CO 80027
Ongmont 303 776 9900 I i c,uf≤vU L. 720 726 3670 I www.lvonspaddis.com
2017-4182
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LYONS GADDIS
ATTORNEYS & COUNSELORS
December 6, 2017
Page 2
Please have Co -Applicants affirm this conditional approval by having the appropriate officers
sign on the signature lines below, and return the executed affirmation along with an executed
copy of the attached Second Amended Operating Agreement. Rural will counter -sign the
Second Amended Operating Agreement and will provide Central with a copy of the fully
executed Second Amended Operating Agreement.
Please let me know if you have any additional questions related to this approval.
Sincerely,
Scott E. Holwick
Attachment
cc: Board of Directors, Rural Ditch Company
Angie Swanson, Secretary, Rural Ditch Company
Kelly Custer, Esq.
Affirmation of Conditional Approval
0011111011,
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Randall C. Knutsdn, President
Randy Ray, Secretary
BOARD OF COUNTY COMMISSIONERS, COUNTY OF WELD
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RURAL DITCH COMPANY
SECOND AMENDED OPERATING AGREEMENT FOR CHANGED COMPANY SHARES
This Second Amended Operating Agreement (the "Agreement") is entered into this
day of , 2017, by the Ground Water Management Subdistrict of the
Central Colorado Water Conservancy District ("GMS") and the Well Augmentation Subdistrict
of the Central Colorado Water Conservancy District ("WAS") (collectively "Subdistricts"), and
the Rural Ditch Company (the "Company").
RECITALS
The Ground Water Management Subdistrict of the Central Colorado Water Conservancy
District and the Well Augmentation Subdistrict of the Central Colorado Water Conservancy
District and the Company entered into an Operating Agreement dated July 19, 2007 related to
Case No. 01 CW255, Water Division No. 1, a change of use of the water rights associated with
3.5 shares of Company stock.
The Subdistricts and the Company entered into an Amended Operating Agreement dated
March 19, 2013, related to Case No. 13CW29, Water Division No. 1, a change of use of the
water rights associated with 2.5 shares of Company stock.
GMS has acquired the right to use an additional 3.75 shares of Company stock owned by
Weld County ("3.75 Shares") and plans to file a water court application to change the use of the
water rights associated with those shares for use by the Subdistricts.
In accordance with paragraph 6 of the original Operating Agreement, GMS wishes to
amend the Operating Agreement to include deliveries of the water yielded from the 3.75 Shares.
The Company agrees, and the parties hereby further amend the terms of the Operating
Agreement and Amended Operating Agreement:
AMENDED OPERATING CONDITIONS
4. Points of Delivery. In addition to those structures identified in paragraph 4 of the original
Operating Agreement, and those identified in the Amended Operating Agreement, the
Company agrees that GMS may take delivery of the 3.75 Shares at any of the following
delivery structures: 1) the Shores Pond B Inlet Structure, located at a point in the SE`/ of the
NEi/4 of Section 2, Township 2 North, Range 68 West of the 6th P.M. in Weld County,
Colorado (Shores Reservoir is owned by Central (20%) and WAS (80%) and is described in
the decree entered in Case No. 00CW83, Water Division No. 1); 2) an augmentation
structure currently located near the downstream end of the Ditch at a point in the NEY4 NE'
NW' of Section 1, Township 2 North, Range 68 West, 6th P.M., Weld County, Colorado; 3)
a future augmentation/bypass structure to be constructed by the Company at a location at or
near its river headgate on Boulder Creek; 4) a future augmentation structure associated with
the City of Firestone's plans to construct drainage to St. Vrain Creek at a location to be
1
Angie Swanson, Secretary
determined near the downstream end of the Ditch; 5) a planned, to -be -constructed Shores
Pond C Inlet Structure located in the S',i of the NW% of Section 1, Township 2 North,
Range 68 West, 6th P.M., Weld County, Colorado; 6) the Rinn Valley Phase 3 inlet structure
and the to -be -constructed Phase 2 inlet structure into storage reservoirs located on the Rinn
Valley Parcel, which property is currently owned by L.G. Everist, Inc. and which is located
in Section 10, Township 2 North, Range 68 West, 6th P.M.; and 7) Hokestra Pit, at an
existing Rural Ditch headgate located in the NE% SW'/ of Section 2, Township 2 North,
Range 68 West of the 6th P.M., in Weld County, Colorado. The Shares may be stored in any
of the storage reservoirs described herein and may be subsequently delivered to St. Vrain
Creek from the reservoirs.
10. Not Entire Agreement of the Parties. This Operating Agreement does not represent the
entire agreement of the parties related to the 3.75 Shares. Other essential terms and
conditions are included in the water court application to change the 3.75 Shares.
13. Status of original Operating Agreement and Amended Operating Agreement, The
original Operating Agreement and Amended Operating Agreement between the Subdistricts
and the Company shall remain in full force and effect except as specifically amended herein.
THE RURAL DITCH COMPANY
By erooso r►G fr ;_
Garrett Varra, Vice -President
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CENTRAL COLORADO WATER CONSERVANCY DISTRICT
GROUND WATER MANAGEMENT SBUDISTRICT OF THE
CENTRAL COLORADO WATER CONSERVANCY DISTRICT
WELL AUGMENTATION SUBDISTRICT OF THE CENTRAL
COLORADO WATER CONSERVANCY DISTRICT
By
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Randall C. Knutson, President
Randy Ray, Secretary
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