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Lincoln Park Crooked Ditch Company July 25-26, 2006 Agenda Item Sa The proposed project will excavate and replace the most deteriorated piping in the system, a approximately 30,225 If. The major "feeder" piping and the most problematic areas will be replaced . over a two-year period, in order to stop water loss and restore system reliability. A special meeting . of ditch shareholders was held on June 6, 2006 at which the proposed project and finances were presented to the shareholders. Approximately 100 out of the 362 shareholders attended and expressed near unanimous support for the project. Feasibi/itv Studies Stillwater Engineering of Pueblo, Colorado has completed the feasibility study in accordance with CWCB guidelines. The study includes an assessment of alternatives to rehabilitate the Crooked Ditch. Lincoln Park Crooked Ditch Company The LPCDC is a Colorado mutual ditch company and a non-profit corporation registered in the State of Colorado, in good standing. The Company was incorporated in 1891, and there are currently 362 shareholders and 3,675 shares of stock. (LPCDC currently holds 275 shares of stock that have been surrendered.) The Company is governed by a 5-member Board of Directors. The LPCDC has the authorization to set annual assessments, and has the authority to shut off water delivery to shareholders that fail to pay assessments, and further rescind shareholder stock. The Board of Directors has the power and authority to borrow money on the company's behalf and enter into contracts. The LPCDC annual operating budget is about $45,000, not including special assessments levied for this project. Water RiQhts . LPCDC diverts its water out of the South Canon Ditch, under the "South Canon Water Decrees", described below. Based on State Engineer's Office (SEa) records from 1988 to 2004, and input from the SEa - Division 2, average annual diversions for LPCDC are estimated to be 1,850 acre- feet. LPCDC maintains a flow gage, in conjunction with the SEO, downstream of their headgate at the South Canon Ditch. The "South Canon Water Decrees" involve three entities who divert water through the South Canon Ditch at the same diversion structure on the Arkansas River, approximately one-mile upstream from Canon City. The water decrees for each entity are as follows: South Canon Ditch 7.91 cfs (1866) 3.40 cfs (1880) 23.20 cfs (1882) Lincoln Park Pump Ditch 2.00 cfs (1866) 1.0 cfs (1866) 3.00 cfs (1882) Lincoln Park Crooked Ditch 2.00 cfs (1862) 3.00 cfs (1866) 3.00 cfs (1904) TOTAL 48.51 cfs 34.51 cfs Sub-total 6.00 cfs Sub-total 8.00 cfs Sub-total The LPCDC 1862 and 1866 decrees are very senior, and provide a reliable 5.0 cfs that is always legally and physically available. LPCDC has the right under their decrees to divert water from the Arkansas River through the South Canon Ditch, and they participate in the maintenance of the . South Canon Ditch. Page 2 of 5