CA3

• Board Meeting Date: 9/18/2007
• Description: CF Section - Changes to Existing Loans - Larimer and Weld Irrigation Company
• Board Meetings - Doc Type: Memo

BACKGROUND

The Company's service area extends from the Cache la Poudre River diversion north of Fort
Collins east to near the town of Galeton, encompassing approximately 86,000 acres. Of this area over
55,000 acres are irrigated and planted in crops or pasture. The L WIC facilities consist of approximately
40 miles of supply ditch, including many control stmctures, checks and headgates.

The Larimer & Weld Ditch (also known as Eaton Ditch) is typical of main supply canals used for
irrigation in Colorado, using a series of check stmctures and gates to control water levels in the ditch,
allowing delivery of water through headgates into lateral ditches, directly onto fields, or into reservoir
storage. Many of the stmctures have been in service since the start of canal operations in the late 1800s,
using stop logs (boards) with guides in the concrete stmctures to control the water levels. Since 2001,
12 of the existing check stmctures have been replaced with air-operated Obermeyer gates to control the
upstream water surface elevations. This type of automatic gate has demonstrated significant
improvement in canal operations. In 2002, the CWCB approved a $1,000,000 loan to replace 10 check
stmctures and install one new one with this type of operation. This project was completed in June 2004
and is now in permanent loan repayment.

This proposed project consisted of the replacement of the Lake Lee Dam check stmcture (the
only equalizer facility on the ditch), replacing the Big Windsor Reservoir check and inlet stmcture, and
constmcting a new check stmcture to replace the existing Finley stmcture. Failure of either the Lake
Lee Dam or Big Windsor Inlet would cause severe system operating difficulties and the loss of water
normally stored in the reservoir. In addition, the Finley check stmcture had no means to apply stop logs
or other measures to temporarily check the ditch and was undermined. The rehabilitation of these three
facilities was recently completed in July, 2007 and the three facilities are currently being operated by the
Company.

FEASIBILITY STUDIES

Duane Smith, P.E. of Smith Geotechnical Engineering Consultants of Fort Collins, completed
the feasibility study for this project in July of 2004, in accordance with CWCB guidelines. The study
includes an assessment of alternatives available for replacement of the check and inlet stmctures.

Table 1 below is a brief summary of the major project elements and their estimated cost as
presented in the original feasibility study:

Table 1 - Opinion of Cost

Structure Construction Cost Engineering Contingency Estimated
Name Total
Cost
Finley Check $158,000 $12,000 $28,700 $198,700
Lake Lee $404,000 $72,000 $73,000 $549,000
Dam
Big Windsor $676,000 $121,000 $122,000 $919,000
Inlet
Totals $1,238,000 $205,000 $223,700 $1,666,700

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Flood Protection. Water Project Planning and Financing. Stream and Lake Protection
Water Supply Protection. Conseryation Planning