BOARD01987

• Board Meeting Date: 7/13/1998
• Description: CF Section - Greeley and Loveland Irrigation Company - Horseshoe #2 Reservoir Outlet Rehabilitation
• Board Meetings - Doc Type: Memo

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$165.00 per share per year. The company owns several direct flow water rights totaling 456 cfs
from the Big Thompson River and for storage of 66,700 acre-feet in several reservoirs. The
current water use and system yield is 66,000 acre-feet per year.

On May 23, 1998, the main outlet of Horseshoe #2 Reservoir became stuck in the open position,
with the reservoir at about gage 21 feet. The reservoir has a capacity of 8,051 acre-feet and the
outlet has a capacity of 300 cfs. The GLIC was unsuccessful in their efforts to fix the outlet, but
were finally able to simply block the outlet as a temporary measure. A small outlet on the south
end of the reservoir is being used to lower the lake. But the south outlet has a capacity of only
60-cfs, and is not sufficient to meet delivery requirements during the irrigation season.

The GLIC and the Seven Lakes Company each hold a 50% interest in the main outlet of the
Horseshoe #2 Reservoir. The GLIC is the sole applicant for this loan. The Seven Lakes
Company will reimburse GLIC for their portion of the project cost.

Feasibility Investigations

The company has hired Boyle Engineering Corporation to conduct the feasibility study. The
objective of the study is "to select a financially sound alternative to rehabilitate Horseshoe
Outlet Works, which will enable them to deliver their water decree in a safe and expeditious
manner to meet their shareholders present and future water requirements." The Plan of Study,
prepared in accordance with the Guidelines for Financial Assistance through the Colorado .
Water Conservation Board Construction Fund, is attached to this memo. A rough draft of the
feasibility study is expected to be available about July 10, 1998. The cost for preparing the
study is $5,000 lump sum.

The GLIC has considered several alternatives, which will be formally evaluated as part of the
feasibility study. The GLIC decided to rule out the "do nothing" alternative, since it would
result in loss of the use of Horseshoe #2 Reservoir for storage.

The preferred alternative to rehabilitate the main outlet of Horseshoe #2 Reservoir will most
likely involve new gates, and replacement or full rehabilitation of the outlet pipe upstream of
the existing gate. The project is fairly straightforward, and will be designed in accordance
with State Engineer Rules and Regulations. The outlet will be sized to accommodate a release
rate sufficient to satisfy water rights of the shareholders.

Although the feasibility study for this project has not been completed, a preliminary estimate
has been made that the total project cost will be approximately $100,000.

Institutional Considerations

The plans and specifications for this project will require the approval of the State Engineer's .
Office, since it involves major repair or modification to an existing Class II jurisdictional .

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