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Deuel and Snyder Improvement Company Agenda Item 14a <br />March 10, 2009 (UPDATED March 18, 2009) <br />Page 2 of 5 <br />river. This diversion is used by the Company and its neighbor, the Upper Platte and Beaver Canal <br />Company. The Upper Platte and Beaver Canal Company diverts water from the south side of the <br />river and just slightly downstream from the Deuel and Snyder diversion. The Upper Platte and <br />Beaver Canal Company's diversion rate (200 cfs) is much greater than Deuel and Snyder's rates (21 <br />cfs and 63 cfs). The diversion is a large concrete rollover wall with a series of slide gates for river <br />control. The slide gates on the south side of the river are controlled by the Upper Platte and Beaver <br />Canal Company. <br />The Deuel and Snyder Improvement Company operates a sand gate located on the north side of the <br />river diversion structure. The sand gate is a vent section through the concrete rollover wall which is <br />boarded up when diversions are required by the Company or by the Upper Platte and Beaver Canal <br />Company. Boards must be removed during the winter to allow excess sand (which builds up in <br />front of the Company's diversion point) to wash down river. Due to the Company's small rate of <br />diversion, the shallow nature of the diversion point, and the narrow channel, the sand buildup at this <br />location must be washed down river during the winter or a sandbar could form that would prevent <br />the Company from diverting altogether. <br />Currently, in order to remove boards and open the gate, a Company employee must walk several <br />yards along the crest of the rollover wall to reach the sand gate. There is not a walkway or handrail <br />for safety. Depending upon the Upper Platte and Beaver Canal Company's operation, there can be <br />water going over the crest of the diversion. Given this major safety concern, the Company has <br />evaluated alternatives to both improve the safety conditions for its employees and more efficiently <br />operate the gate. <br />Loan Feasibility Study <br />Brent Nation, P.E., Nation Engineering Services, LLC, prepared the Loan Feasibility Study titled <br />"Feasibility of the Rehabilitation of the Deuel and Snyder Improvement Company River Sand Gate <br />Structure, " dated February 2009. The study was prepared in accordance with the CWCB <br />guidelines and includes preliminary engineering design and cost estimates. <br />Deuel and Snyder Improvement Company <br />The Company is a Colorado mutual ditch company and non-profit corporation. It was established in <br />1884 to construct and operate the Deuel and Snyder Canal for the benefit of its shareholders. There <br />are 15 shareholders and 161 total shares. The shares are split into two categories based upon the <br />two different types of water rights owned. One division of the Company is made up of 21 shares <br />associated with the Company's Meadow Rights. The remaining 140 shares are associated with the <br />Company's traditional irrigation water rights. The Company is controlled by a five-member Board <br />of Directors. The Board has the ability to set assessments and take on debt as they deem necessary. <br />Water Rights <br />The shareholders of the Company have the ability to divert 21 cfs from the South Platte River under <br />the Meadow Rights and 63 cfs under the traditional irrigation rights. The Meadow Rights are called <br />such because they were originally developed to irrigate meadows for pasture grass and are only <br />available in the spring and early summer (which was the only time of year the river was dependable <br />