18b

• Board Meeting Date: 9/18/2007
• Description: CF Section - New Project Loans - Bijou Irrigation Company - Diversion Structure Rehabilitation
• Board Meetings - Doc Type: Memo

Sijou Irrigation Company
September 18-19, 2007

Agenda Item 18b

which is in good condition, and 2) the river diversion structure, used to divert flow into the ditch
intake structure, which uses a radial gate, a slide gate, and a removable board system to divert flow
into the ditch. The diversion structure has suffered extreme damage in times of high flow in the
river, and is in need of significant repairs. This structure can not be operated in a manner to reduce
the sand upstream of the intake gates. The sand bar causes excessive amount of sand to be
drawn into the canal and hampers diversions into the canal intake. This problem will continue to
occur unless the river diversion is changed in some dramatic fashion. The existing diversion also
has a problem with debris, mainly trees getting hung up, and requires continual maintenance. The
proposed project would make repairs to the river diversion portion of the structure by constructing a
96 foot long Obermeyer Pneumatic Spillway Gate (Bladder Gate) structure located immediately
adjacent to the river radial gate and the canal intake structure. On August 27, 2007, a special
Company shareholders meeting was held to approve the project, which received unanimous
approval with 78.5% of the shares of stock represented.

Feasibility Studies

Nation Engineering Services, LLC, of Fort Morgan, has completed the feasibility study in
accordance with CWCB guidelines. The study includes an assessment of alternatives to
rehabilitate the diversion structure/headgate.

Biiou IrriQation Company

The Company is a Colorado non-profit corporation registered in the State of Colorado, in good
standing. The Company was incorporated in 1900, and there are currently 107 shareholders and
4,000 shares of stock. About 2/3 of the Company shares are owned by the District. The
Company's office is located in Fort Morgan. The Company is governed by a 5-member Board of
Directors. Per its Bylaws, the Company has the authorization to set annual assessments, the
authority to shut off water delivery to shareholders that fail to pay assessments, and the authority to
rescind and resell shareholder stock to pay back assessments. The Board of Directors has the
power and authority to borrow money on the company's behalf and enter into contracts. For the
year 2006, the Company had income of approximately $460,000. Approximately 25% of the
revenues come from share assessments, 40-50% from well assessments, and the rest from other
sources.

Water RiQhts

The Company holds numerous decrees for irrigation water, storage water and recharge water, all of
which are diverted through the Bijou Canal. The most senior irrigation decree is for 40 cfs with a
1/10/1871 appropriation date, and the largest irrigation decree is for 450 cfs with a 1/10/1888
appropriation date. The Company also has a storage right for Bijou NO.2 Reservoir of 9,183 AF
with an appropriation date of 1/5/1909, with a 12/31/1929 refill right.

Proiect Description

The purpose of this project is to undertake repairs to the Company's irrigation diversion structure to
ensure that it can continue to divert water from the South Platte River. Several repair alternatives
were looked at, as follows:

1. No-action alternative
2. Perform temporary remedial work to return diversion to normal operation
3. Replace 96 feet of diversion structure with new spillway gate, using existing intake gates
4. Replace 192 feet of diversion structure with new spillway gate, using existing intake gates

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