Pueblo County discusses transferring 10 Bessemer Ditch shares to secure Mesa rec center water; certificates missing

Pueblo County commissioners on Thursday discussed a resolution to transfer 10 shares of Bessemer Ditch Irrigation Company stock to the St. Charles Mesa Water District so the county can obtain a separate water tap for the Mesa Recreation Center.

Assistant County Attorney Gary Ross told the Board the county owns 76.27 shares of Bessemer Ditch stock, acquired in 1924 and 1925, and that the St. Charles Mesa Water District requires a commercial applicant to convey 10 shares to receive a new tap. "We have to get at least this approved resolution to the St. Charles Mesa Water District by tomorrow because their rules are that you can't transfer water after January 31 of each year," Ross said.

Ross said the county currently uses a neighboring meter provided by Health Solutions but needs a separate tap and meter for the recreation center. He told commissioners the county has been unable to locate the original share certificates and that, if it cannot produce the originals, it would need a lost instrument bond to complete the transfer. Ross described a recent transaction in which the lost instrument bond cost was $300 per share, which he calculated would total about $22,750 for 10 shares, but he added the county may obtain better terms.

Commissioner Lee asked whether the 10 shares would be used solely for operations of the Mesa Recreation Center. Ross said the district’s rule requires 10 shares for commercial, agricultural or industrial taps and that the county’s historical holdings will be reduced if the transfer proceeds. Ross also said the county leases the land to farmer Shane Millberger and that Millberger has discussed arrangements with the water district; Ross said Millberger is expected to lease the 10 shares back from the district to maintain existing farming operations.

Commissioner Swearingen and others raised concerns about cost and the lack of written assurances about reimbursement to Health Solutions for prior water usage. Ross said Rob Keplinger, a director at the water district, had indicated he might discuss reimbursement with county staff but that the county should not rely on an unwritten handshake. "I hate to be honest handshake in a conversation when it involves that kind of thing because it could come back later to us," a commissioner said during the exchange.

Commissioners noted that when the city purchased a portion of the ditch in 2009, the per-share price in that transaction was $10,150, a figure discussed during the meeting as context for the shares’ value. Ross cautioned that share values fluctuate and said he could not confirm a current market price.

No final vote on the transfer took place. Instead, County Attorney Cynthia Mitchell asked the Board to meet in executive session to receive legal advice on the possible sale and contract negotiations with El Pueblo (the county-owned property) and the St. Charles Mesa Water District. The Board voted to go into executive session under "CRS section 24 6 4 0 2 4 b." The meeting record shows the Board entered executive session to continue discussions and address legal questions before taking any formal action on the resolution.

Votes taken earlier in the meeting, unrelated to the transfer, included approval of an amended agenda, ratification of three consent appointments, and acceptance and filing of the Pueblo County Treasurer’s statement of fees collected for December 2024; those motions passed by voice vote during the public meeting.

The Board did not record a final decision on the share transfer during the public session. Commissioners directed staff to continue locating the original certificates, to explore bonding options if originals cannot be found, and to pursue written clarification about any reimbursement to Health Solutions before concluding the transfer process.