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SYSTEM OVERVIEW <br />The City of Fort Collins is located along the Cache la Poudre River and constitutes the largest <br />municipal entity within Water Division 1, Water District 3. The City was established in 1873 and <br />first purchased direct flow rights in 1889 for potable uses. The City expanded its water supplies with <br />additional direct flow rights in the early 1900s. The City has been involved with the development of <br />transbasin supplies within the Northern Colorado Water Conservancy District (NCWCD) since <br />the District's beginning. In the early 1960s, the City began to require raw water dedication as a <br />condition of receiving water service, which resulted in Colorado-Big Thompson (C-BT) units <br />and shares in local ditch and reservoir companies being provided to the City. This was followed <br />by the acquisition of a high mountain storage unit (Joe Wright Reservoir) in the early-1970s and <br />most recently the purchase of Halligan Reservoir in the fall of 2003, for potential enlargement. <br />Historically, Fort Collins has had sufficient water supplies to meet its demands in all but the <br />driest of years (e.g., 1977 and 2002). The City's water resources system has operational <br />flexibility from the combination of its water right holdings, and operation of its own reservoir, <br />exchanges, and pro rata interest in local irrigation companies, some of which have been changed <br />in water court. Administration of the different municipal interests and agricultural interests on <br />the Cache la Poudre River is relatively complex. As such, in addition to the change cases and <br />exchanges adjudicated in water court, the City of Fort Collins and other water users utilize a <br />number of informal exchanges and other operating agreements to maximize the use of water <br />within the basin. These efforts may include the use of Fossil Creek Reservoir as a downstream <br />control point on the river and the use of Horsetooth Reservoir for bookovers of C-BT units. <br />Key structures identified in the City of Fort Collins System are as follows: <br />1) Joe Wright Reservoir and Michigan Ditch System <br />2) Fort Collins Pipeline <br />3) Pleasant Valley and Lake Canal, Chaffee Ditch, and South Side Ditches <br />• Arthur Ditch <br />• New Mercer Ditch <br />• Larimer County No. 2 Ditch <br />• Warren Lake Reservoir <br />The location of Fort Collins and major elements of its water resources system are shown in red in <br />Figure 1. Other elements pivotal to Cache la Poudre River operations are included in Figure 1. <br />City of Fort Collins Operating Memorandum.doc 2 of 20 January 5, 2005 <br />