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Dixon Canon Ditch and Reservoir Company Agenda Item 21a <br /> May 18-19, 2016 Board Meeting(Updated May 20, 2016) <br /> Page 2 of 4 <br /> Background <br /> The Company owns and operates the Dixon Reservoir Dam (Reservoir) and associated ditch located in <br /> Larimer County on the west side of Fort Collins. The Reservoir is directly east of Horsetooth Reservoir. <br /> The Company diverts water off of Dixon Creek and provides irrigation water to a 206-acre service area <br /> via approximately 9,000 feet of pipe and ditch. The water is typically used to irrigate turf, agricultural <br /> crops, and the City of Fort Collins parks and open space. <br /> The dam was constructed in 1885 and is classified as a Significant Hazard Dam by the SEO. The <br /> Reservoir has a decreed storage volume of 412 acre-feet. Over time, several maintenance projects <br /> were completed on the dam including: tree removal, sand filter installation, relining of the outlet <br /> pipe, and replacement of the outlet gate and trash rack. <br /> The Reservoir is not currently under a storage restriction by the SEO; however, the November 14, 2011 <br /> and May 30, 2013 SEO inspection reports identified locations of seepage to need to be addressed in <br /> order to maintain the full storage decrees. Those inspection reports suggested installing an engineered <br /> drain to filter and collect seepage water. Installation of a flow-measuring device was also suggested so <br /> the quantity and quality of the seepage can be monitored. <br /> Loan Feasibility Study <br /> John Gauthiere, P.E. of Gauthiere Engineering, Inc., prepared the Loan Feasibility Study, titled <br /> "Feasibility Study for The Dixon Canon Ditch and Reservoir Company - Dixon Reservoir Dam <br /> Improvement Project," dated March 30, 2016. The feasibility study was prepared in accordance with <br /> the CWCB guidelines and includes an analysis of alternatives, preliminary engineering design, and <br /> construction cost estimates. <br /> Borrower - Dixon Canon Ditch and Reservoir Company <br /> The Company is a non-profit corporation registered in the State of Colorado as a mutual irrigation <br /> corporation. It is in good standing with the Colorado Secretary of State. It has operated since 1885 but <br /> did not establish Articles of Incorporation until 1984. There are five shareholders and 1,000 shares of <br /> stock. Shareholder approval is required to set assessments. The Company's three-member Board of <br /> Directors has the power to forfeit or sell stock shares if assessments are not paid. Company revenues <br /> come from shareholder assessments. <br /> Water Rights <br /> The Company's source of water comes from Dixon Creek. Water rights of the Company include: <br /> TABLE 1: WATER RIGHTS <br /> Appropriation Water Court <br /> Name Amount Date I Adjudication Date Case No. <br /> Dixon Canon Reservoir 448 AF 10/8/1885 12/9/1904 CA1591 <br /> Dixon Canon Reservoir 21 AF 8/30/1906 4/22/1922 CA2031 <br /> Average annual diversions are 312-acre feet. <br /> Project Description <br /> The purpose of this Project is to help the Company continue to deliver water to shareholders and <br /> maintain the safety of the dam. The Company considered the following Project alternatives: <br /> Alternative 1 - No-Action: This alternative was considered undesirable as it jeopardized the <br /> Company's storage decrees. <br />