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WRCC, Inc. Agenda Item 23c <br />September 9, 2008 <br />Page 2 of 6 <br />Background <br />WRCC, Inc. owns six storage reservoirs and ove r 25 miles of supply ditches across Larimer and <br />Weld Counties in Colorado. The reservoirs are: Big Windsor Reservoir, Douglas Reservoir, <br />Reservoir #8, Annex Reservoir, El der Reservoir and Cobb Lake. Thes e facilities are used to store <br />and supply irrigation water to agricultural user s. The Company divert s approximately 35,000 AF <br />annually through the entire system. <br />This Project involves the rehabili tation of Big Windsor Reservoir (Reservoir). The Reservoir is <br />located about 8 miles north of Fort Collins a nd was originally made up of two independent <br />reservoirs that were joined in 1976 by enlarg ing the western main embankment. The northern <br />reservoir spillway was abandoned with the enlargem ent but a low area still remains in this area. <br />As a result of a 1997 survey, it was discovered th at areas of the embankment were not properly <br />constructed and low spots existed. The State Engi neer’s Office (SEO) worked with the Company to <br />help suggest alternatives to co rrect the problem. Failure to perform repairs on the embankment <br />could result in a storage rest riction of the Reservoir. <br />In addition to the embankment problems, the SEO also has concerns regarding the spillway. The <br />main spillway discharges into an area outside of th e historical natural channel onto farm land that is <br />not owned by the Company. It is currently not ch annelized in any way and discharges over a large <br />acreage that is slated for development. To meet SEO safety requirements, the Company intends to <br />divert flows away from adjacent landowners and channelize the flows as efficiently as possible <br />back to the natural drainage course. <br />This project is being pursued by the Company as a result of SEO dam safety requirements. The <br />SEO has classified the embankment crest mainte nance and abutment extensions as maintenance <br />operations and has approved the plans for this wor k. The spillway extension plan is not under the <br />jurisdiction of the SEO since that portion of the project has no effect on the dam or dam safety. <br />Loan Feasibility Study <br />Mayo Sommermeyer, The Dow Law Firm, LLC, pr epared the Loan Feasibility Study titled <br />“Feasibility of Windsor Dam and Spillway Main tenance Project, August 15, 2008.” The study was <br />prepared in accordance with th e CWCB guidelines. John Andrew, Ph.D., P.E., contributed the <br />engineering and technical support portion of the Feasibility Study. <br />WRCC, Inc. <br />The Company is registered as a Colorado non-prof it mutual ditch company and was established in <br />2007 as the result of a corporate reorganiza tion. There are 1,000 shares of stock and 216 <br />shareholders. The Company is managed by a five -member Board of Directors. The Board has the <br />power to levy annual assessments and enter into loan agreements. <br />