CORONA WATER LAW Craig V. Corona, Esq. 420 E. Main St., Ste. 210B Aspen, CO 81611 (970) 948-6523 cc@craigcoronalaw.com Via E-Mail SETTLEMENT COMMUNICATION PROTECTED UNDER C.R.E. RULE 408 May 8, 2017 Cynthia Covell, Esq. Alperstein & Covell 1600 Broadway Denver, CO 80202 cfc@alpersteincovell.com Re: City of Aspen Case No. 16CW3128, Maroon Creek Reservoir Dear Cindy, The list of studies and timeline provided with your letter of May 1st are disappointing as they don’t provide a meaningful opportunity for settlement within the water court schedule. The City seems to take the position that the water court process as prescribed by the Uniform Rules doesn’t apply to this application. The timeline indicates the City will not be prepared to engage in substantive discussions to resolve the concerns of the referee, Division Engineer, and opposers until after December of this year. It is unclear why this is the case when, at the March 21st forum, George Oamek said his study of future City demand could be completed in six months. The timeline is also inconsistent with what the City represented at the March 21 forum. Namely, it appears that you have created an extended schedule where council will not be prepared to decide on the ultimate size and location of the reservoirs until March of next year. If that is the case, the City will have spent the entire one-year referee period allowed by the rules without having engaged in any substantive negotiations with opposers. I am sure you can agree that this proposal is unconventional, especially for a standard diligence case like this. Under these circumstances, we would like to offer an alternative path to settlement originally suggested by Pitkin County. We propose that the opposers agree to a stay of this diligence proceeding to give the City time to file an application to change the location and size of the reservoir water rights in water court. At a minimum, the City would have to agree to move the reservoirs from their decreed location to a location within the City’s jurisdiction. This will Cindy Covell, Esq. City of Aspen Case No. 16CW3128 ___________________________ accomplish the City’s stated goal of not building dams in wilderness. Other details of the parameters of the change case can be worked out with the parties through further negotiation. I discussed this with counsel for all opposers except Rhonda Bazil and understand there is general consensus although certain details would need to be worked out.. In order to give time for that and to give the City time to consider this offer, my client is willing to extend the time before the referee for an additional thirty days from the May 9 status conference. Please discuss this offer with your client and let me know if it is acceptable. Thank you and please feel free to call me with any questions or concerns. Sincerely, Craig V. Corona cc:   Marcella Larsen, Esq. James DuBois, Esq. Rhonda Bazil, Esq. Laura Makar, Esq. Rob Harris, Esq. Paul Noto, Esq. Kevin Patrick, Esq.