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<br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br />Water is diverted from the South Platte River southeast of the City of Greeley and is <br />delivered on-demand to farms which produce primarily corn for grain, beets, pasture, <br />hay, and vegetables2. In addition to the direct flow right for irrigation, many shareholders <br />also use tributary ground water from wells to supplement crop needs during the early <br />growing season, during peak periods of water demand, and during dry years. The <br />predominant method of irrigation under the Union Ditch is flood irrigation, although <br />sprinkler irrigation is increasing. The canal system is similar to others in the region, <br />consisting entirely of earthen canals, check structures in the main canal, and radial type <br />headgates at individual farms. Union is considering the construction of recharge ponds <br />for purposes of augmenting tributary ground water that is pumped from the South Platte <br />River by well owners. <br /> <br />Secondary Water SUWllv Conce~ <br /> <br />A secondary supply or dual system is basically a utility. Potable water is provided for <br />indoor culinary uses and a secondary or "dual system" is provided for outdoor landscape <br />irrigation. <br /> <br />The basic concept behind a secondary supply system is to more effectively serve the <br />needs of urban growth and agriculture simultaneously. Under these systems the canal <br />company retains their expertise as the well established water provider; and the burdens <br />associated with municipalities acquiring and managing water rights for residential water <br />needs are alleviated. <br /> <br />Under a typical urbanization scenario, water stocks in ditch companies are acquired by <br />developers and turned over to municipal water providers as a means of satisfying the <br />raw water turnover requirements for new development. The municipal water providers in <br />turn provide treated water to the new development for both culinary and landscape uses. <br />The process of turning over raw water in return for treated water for use on landscapes <br />is inherently unproductive because the beneficial water use in the canal service area is <br />removed and water is unnecessarily treated by the municipal water providers at an <br />added cost. <br /> <br />In highly urbanized canal service areas, it is very possible for the municipality to acquire <br />the majority interest in these canal systems, and as such assume significant control and <br />management in these systems. The process of municipal water providers replacing <br />these long-established ditch companies as managers also appears to be counter <br />productive because those with operational experience lose their role as decision-makers <br />in the system. <br /> <br />A secondary water supply system is a good water management strategy for canal <br />companies in urbanizing areas because it has the potential to mutually benefit ditch <br />companies in the form of modest revenue generation for canal improvements as well as <br />the state, municipalities, and residential water users in the form of more strategic water <br />use (Dual Systems Study, page 3). <br /> <br />2 In this canal system, on-demand means that water users make a call to the ditchrider for water <br />24 hours in advance of when they need it. <br /> <br />Aqua Engineering, Inc. <br />November 17,2004 <br /> <br />Canal Modernization Study <br />- 3- <br />