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Department of Utilities
Reference: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRIGHTON, COLORADO, ACTING BY AND THROUGH ITS WATER ACTIVITY ENTERPRISE, AUTHORIZING THE PURCHASE OF THREE (3) SHARES OF FULTON IRRIGATING DITCH COMPANY FROM ARCUS SOUTHGATE LLC (SELLER) FOR THE TOTAL NOT TO EXCEED SUM OF EIGHTY ONE THOUSAND DOLLARS ($81,000.00); APPROVING A SUPPLEMENTAL APPROPRIATION FROM THE WATER ENTERPRISE FUND IN THE AMOUNT OF EIGHTY ONE THOUSAND DOLLARS; AND AUTHORIZING THE ACTING CITY MANAGER TO UNDERTAKE SUCH TASKS AND EXECUTE SUCH DOCUMENTS AS MAY BE REQUIRED TO CONSUMMATE THE PURCHASE ON BEHALF OF THE CITY.
To: Mayor Richard N. McLean and Members of City Council
Through: Clint Blackhurst, Acting City Manager
Chontel Trujillo, Assistant City Manager of Operations
Prepared By: Curtis Bauers, Director of Utilities
Date Prepared: August 22, 2017
PURPOSE
To consider the approval of a resolution authorizing the execution of contract with Arcus Southgate LLC for the purchase of three (3) shares of capital stock in the Fulton Irrigation Ditch Company. The shares have been deemed appropriate to be included in Brighton's water portfolio for augmentation purposes. Funding for the purchase - $81,000 - will come from existing Plant Investment Fees that have been specifically set aside for such acquisitions.
BACKGROUND
Occasionally, developers purchase water rights in excess of their development needs and opportunities arise to purchase those rights at same cost. These opportunities to purchase small quantities of shares at bulk pricing, would not ordinarily be available were the City to bid out its requirements at similar sizes. Staff deems it prudent to avail of these opportunities as they arise and pursuant to the City's normal due diligence practices, recommends purchase of the above-named shares for the City's water portfolio.
FINANCIAL IMPACT
The total amount payable to Arcus Southgate LLC for the acquisition of the shares is $81,000. Funding to of...
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