PROJ00044

• Contract/PO #: FS0011X
• Contractor Name: Cotton Creek Water Company
• Contract Type: Loan
• Water District: 0
• County: Moffat
• Loan Projects - Doc Type: Feasibility Study

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As a part of routine, annual maintenance, the Company should do
the following:

(1) Check the upper reaches of the Creek for fallen trees and blockages.
(2) Designate a ditch rider to regulate variable flows.
(3) Re-route, clean, and de-silt all laterals as needed.
(4) Inspect Reservoir outlet works.
(5) Spray weeds along laterals.
(6) Alert the Forest Service to damages to the Cotton Creek riparian area from
careless outfitter and backpacker activity.
(7) Deal with winter icing problems, storing as much water as possible in the
Reservoir

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For the Company to complete the major projects and undertake
annual maintenance, it will be necessary to charge assessments to
fund dependable service from people and equipment capable of doing
the work. The Company could buy its own equipment and hire a
part-time staff, but this invites the complicated administrative
prospects of payroll, insurance, vendor accounts for inputs, and
the overhead burden of a separately functioning entity.

A more practical approach would be for Cotton Creek Water 'Company
to engage Cotton Creek Ranch in a management-maintenance contract.
Cotton Creek Ranch would use its equipment and personnel to meet
the needs of the Company and subcontract large jobs when
necessary. Cotton Creek Ranch would bill the Water Company
monthly for services rendered. The Water Company would estimate
an annual budget and collect assessments in that amount. An
annual deficit or surplus would carry forward to the next year,
reflected as either an increase or decrease in assessments.

Cotton Creek Water Company does not own the first 6.8 cfs of flow
from Cotton Creek. If these early decrees were held by the
Company, the water would have a greater range ,of application and
the administration of Company water would be made simpler.
Purchase of this water is recommended.

The annual meeting of Cotton Creek Water Company will be held at
Cotton Creek Ranch, 24299 Road 62, Moffat, CO 81143 on Monday,
March 2, 1992 at 1 PM to elect officers, consider the purchase of
additional water rights, discuss any business stockholders wish to
bring before the Company, and vote on the proposed budget and
assessments.

Sincerely,

John Mattingly, Manager