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Fulton Irrigating Ditch Company Agenda Item 34c <br /> May 9,2014(Updated May 23,2014) <br /> Page 2 of 4 <br /> Background <br /> The Company is located in Adams County and operates the Fulton Ditch for the benefit of the <br /> shareholders by providing direct flow irrigation water. The Ditch diverts from the South Platte <br /> River near 100th Ave. in Commerce City and water deliveries are made through the Company's <br /> ditch system to a 38,000 acre service area. The growth of Sago pond weed in the South Platte <br /> River has escalated significantly over the last several years and is obstructing the flow through the <br /> trash rack. In fact, during the summer, it is common to stop ditch diversions on a daily basis to <br /> allow for the manual cleaning of the trash rack. In addition to the challenges being faced by the <br /> Company related to the trash rack, holes have been discovered in the river diversion gates and the <br /> recent flooding has made it apparent that the gates need to be replaced. The Company will also <br /> replace the Branch Ditch Diversion Structure with a new structure. The Branch Ditch is located on <br /> the Fulton Ditch near 136th Ave. The structure was originally constructed of timber and concrete <br /> and has deteriorated to the point of potential failure. <br /> Loan Feasibility Study <br /> Colby Hayden, P.E. of Deere and Ault Consultants, Inc. in Longmont, CO prepared the Loan <br /> Feasibility Study,titled"Rivergate Replacement, Trash Rack Cleaning System and Branch Ditch <br /> Diversion Reconstruction—Feasibility Study" dated March 31, 2014. The Study was prepared in <br /> accordance with CWCB guidelines and includes preliminary engineering and an engineer's <br /> estimate of probable cost that were used in determination of the total Project cost. Financial <br /> statements were prepared by Buckner Wadsworth& Assoc. LLP, and assistance was provided by <br /> Bryce Steele, P.C., Company Secretary/Treasurer. <br /> Borrower—Fulton Irrigating Ditch Company <br /> The Company is a mutual ditch company and a non-profit corporation registered in the State of <br /> Colorado and are in good standing. There are 220 shareholders and 7,185 shares of stock. The <br /> Shareholders set annual assessments and the Board of Directors have power to cut off water <br /> deliveries to shareholders that fail to pay their assessments and the power to offer stock for sale <br /> to pay back assessments. <br /> The Company's Bylaws indicate the ability to borrow money for corporate purposes whenever <br /> deemed necessary by its Board of Directors. The Company obtained a vote of approval from the <br /> shareholders at its February 16, 2013 annual meeting to contract for the CWCB loan and increase <br /> the annual assessments to service the loan payments. <br /> Water Rights <br /> The source of water for the Company is direct flow water rights out of the South Platte River. The <br /> Company's water rights are summarized in the Table 1. <br /> TABLE 1: COMPANY'S DIRECT FLOW WATER RIGHTS <br /> Amount <br /> Case Adjudication Appropriation (CFS) <br /> Number Date Date <br /> CA6009 4/28/1883 5/1/1865 79.7 <br /> CA6009 4/28/1883 7/8/1876 74.25 <br /> CA6009 4/28/1883 11/5/1879 50.23 <br /> Total 204.18 <br />