PROJ02011

• Contract/PO #: 04000000048
• Contractor Name: Lake Canal Reservoir Company
• Contract Type: Grant
• Water District: 0
• County: Larimer
• County: Weld
• Loan Projects - Doc Type: Feasibility Study

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Introduction

The Lake Canal Company holds several water right decrees on the Cache la Poudre
River in northeastern Colorado. The company's headworks and river diversion, and the
start of the canal system known as Lake Canal, is located in north Fort Collins, Colorado
near College Avenue. The total service area of approximately 7,700 acres generally
comprises an area surrounding Timnath, Colorado and north and west of Windsor,
Colorado.

Figure 1 shows the location of Lake Canal, notable highways, and surrounding towns.
This figure also shows the location of the Greeley #2 Canal system. New Cache La
Poudre Irrigating Company (New Cache) holds decrees on the Poudre River as well.
New Cache, along with two other mutual companies, constitutes the whole of the
Greeley #2 Canal system. This is noted because the Greeley #2 Canal and Lake Canal
systems are managed by one entity, namely the New Cache La Poudre Irrigating
Company. Specifically, day-to-day operations and management of the canals are the
responsibility of Mr. Don Magnuson, Superintendent, and Mr. Dale Trowbridge, Office
Manager.

Everything from fully rural agricultural settings to highly urbanized settings can be found
in the approximately 50,000 acre total service area of Lake Canal and Greeley #2 taken
together. However, most of the currently intensive growth and urbanization is occurring
under the Lake Canal system.

New Cache and Lake Canal have been participants in what is commonly called the "dual
systems study1" that was funded by Colorado Water Conservation Board and conducted
by Colorado State University. This study, which included a comprehensive look at the
dual or secondary supply systems that exist in other states, was completed in
September 2003 after more than two years of work. Within the context of the study, dual
systems in Utah, in particular, were deemed to be quite suitable and appropriate to the
northern Colorado circumstance; especially considering the water rights, the historic role
of the canal companies, and the growing pressures and impacts of urbanization.

In June of 2003, the Lake Canal Company commissioned Aqua Engineering and
Colorado State University's Sociology Water Lab to undertake a feasibility study specific
to Lake Canal with intent to evaluate the opportunities and costs associated with
modernizing the canal. As the work developed, the focus of the effort became the
opportunity to provide pressurized secondary water to housing developments, parks,
streetscapes, and golf courses that are currently envisioned. Pressurization in and of
itself results in a fully modernized canal, even to the extent that the canal itself could
become obsolete and essentially replaced at some point by pressurized piping.
Urbanization at the current level is expected to occur rapidly over the next 10 to 15
years. The Lake Canal Board of Directors have predicted that the current pace of growth
will leave little traditional agriculture per se under the Lake Canal system after 2015.

Provision of pressurized secondary water is envisioned to be, not only a key canal
modernization strategy, but a mechanism for actually sustaining an agricultural economy
and setting (Le. desirable open space areas) under Lake Canal. Because of the potential

I The complete report reference can be found under References in this report.

Aqua Engineering, Inc.
June 7, 2004

Canal Modernization Feasibility Study
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