BOARD00102 ‎(2)‎

• Board Meeting Date: 1/23/2007
• Description: CF Section - Construction and Severance Tax Trust Fund Perpetual Base Acct New Loans - Greeley Irrigation Co. - Greeley Canal No. 3 Rehabilitation
• Board Meetings - Doc Type: Memo

Greeley Irrigation Company
January 23-24, 2007

Agenda Item 9a

repair, upgrades, or replacement. GIC diverts water from the Cache la Poudre River with the
head gate located on the south bank of the river in the SE 1/4 of Section 32, T6N, R66W, 6th
P. M. The cana~ terminates east of the City of Greeley approximately 12 miles downstream of
the river diversion. Average annual headgate diversions are 18,678 acre-feet.

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Over the course of the past 18 months, the GIC has been considering and prioritizing a number
of phased improvements to the canal which are as follows:
. Repairs to, and partial replacement of, the river diversion.
. Piping or lining of portions of the canal.
. Consideration of canal automation using supervisory control and data acquisition
(SCADA) equipment.
. Tree removal and tree pruning.
. Canal realignment, reshaping, and straightening.
. Removal or repair of selected headgates.
. Installation of new headgates.

The improvements are, in effect, the first steps of phased canal modernization. These
considered improvements would have the overall effect and benefit to the GIC shareholders of:
. Improving overall canal operations and operational efficiency.
. Increasing consistency of shareholder headgate deliveries.
. Decreasing operational liabilities.
. Reducing unnecessary,operational spills.

Feasibility Studies

GIG, through its engineer Aqua Engineering, Inc., has completed the feasibility study in
accordance with CWCB guidelines. The study includes assessment of a program of
alternatives to improve canal operations and efficiency.

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Greeley IrriQation Company

The GIC is a non-profit mutual irrigation company registered in the State of Colorado, in good
standing, incorporated in 1882, currently with 149 shareholders and 519.7 shares of stock
outstanding. The GIC is governed by a 7-member Board of Directors. Per the By-laws, the
GIG Board of Directors has the authority to set annual assessments that are used to pay the
expenses of operating the company, the authority to shut off water deliveries to shareholders
who have not have paid annual assessments, and the ability to effect the forfeiture and sale of
shares of stock for unpaid assessments. The Board of Directors has the power and authority to
borrow money on the company's behalf and to enter into contracts. For the year 2005, the GIC
had income of approximately $200,000 with expenses of approximately $155,000.
Assessments in 2006 were $250 per share.
I
Water RiQhts

'Direct flow water rights controlled by the GIC were decreed in Civil Action No. 320 by the District
pourt, Larimer County, State of Colorado, on April 11, 1882, and in a later adjudication on
December 22, 1927. The GIC diverts its water from the Cache la Poudre River at the headgate
bf the Greeley Canal No.3. From 1950 to 2005, average diversions were 18,678 AF. Direct
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flow right appropriation dates and amounts are as shown in the following table.

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