C153833 Feasibility Study

• Contract/PO #: C153833
• Contractor Name: North Poudre Irrigation Company
• Contract Type: Loan
• Water District: 3
• County: Larimer
• Bill Number: HB 98-1189
• Loan Projects - Doc Type: Feasibility Study

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Executive Summary

The North Poudre Irrigation Company (NPIC) is a mutual ditch company serving approximately 685
stockholders along the Front Range of Northern Colorado, The company provides irrigation water for
approximately 24,000 acres, The primary source of water is the Cache la Poudre drainage basin and
the Company delivers and stores water with a system of 20 storage reservoirs and over 200 miles of
ditches. Additionally the company owns 40,000 units of Colorado Big Thompson water. Municipal
and industrial stockholders own approximately 54 % of the company stock with the City of Fort Collins
owning approximately 90% of this stock. Agricultural stockholders own the remaining 46% of the
company stock, The company has assets of over l2-million dollars in addition to the Colorado Big
Thompson water, which is currently valued at $3,000 per unit.

This feasibility study covers a $500,000 loan request approved in November of 1997 by the CWCB,
and an additional loan request of $1,107,264, Both loans are requested for a 20-year period with NPIC
covering 25% of the total costs on the $500,000 loan and 10% of the total costs on the $1,107,264
loan, The combined loans will cover four projects, The projects include 1) repairs to the NPIC #6
Outlet ditch to prevent erosion and encroaclunent on to neighboring properties, 2) enlargement of the
NPIC Reservoir #5 spillway to conform to State regulations, 3) repairs to the Indian Creek Reservoir
dam and enlargement of the spillway to conform to State regulations, and 4) rehabilitation of NPIC
Reservoir #4 dam and spillway,

NPIC currently has six additional loans with the CWCB totaling $5.157,500, All of the loans have
been for repair and rehabilitation of storage reservoirs and NPIC has made timely payments on each of
the loans, Revenue for loan payments is derived from assessment of 10.000 shares of outstanding
stock, Assessments are presented to the stockholders for approval at the annual meeting each
February, Current assessments are $85 per share and have been as high as $100 per share in the past.
The new loans will require a projected assessment as high as $115 to cover initial costs of the projects
but assessments will reduce to $100 per share or less after the first six years of the 20 year loan. There
are no problems anticipated with the increased assessments,