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<br />27. What are the benefits of salinity improve-
<br />ments?
<br />
<br />Answer: The direct benefit to participating GVIC
<br />shareholders are irrigation delivery facilities that are
<br />more efficient, easier and lower in cost to operate and
<br />maintain with more efficient use of the land surface.
<br />Indirect benefits to all of western Colorado are salt
<br />reductions in the Colorado River which will allow for
<br />the future development of western Colorado resources.
<br />
<br />28. What costs will GVIC shareholders have
<br />to pay as a result of salinity improvements?
<br />
<br />Answer The Construction Agreement is written so
<br />as to not cost GVIC shareholders anything for the
<br />construction of salinity improvements. An accounting
<br />system will be established to identify, separate, ac-
<br />count for and track all costs associated with salinity
<br />control, whether it be construction or 0 & M. It is only
<br />those costs for 0 & M up to and including the base cost
<br />that will be paid by the participating laterals by
<br />assessments against the participating lateral's mem-
<br />berships or stock.
<br />
<br />29. What is the status of the suit brought by
<br />Six Plus Farms..ct..a!.. v. GVIC?
<br />
<br />Answer: Recently, at the request of the Plaintiffs
<br />(Six Plus Farms, Robert Baughman and Dr. Mary
<br />:\Ioore), discussions to settle the case began. These
<br />
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<br />discussions lead to an agreement that all claims of Six
<br />Plus Farms be dismissed with prejudice. Dismissed
<br />wiih prejudice means the claims cannot be refiled-with
<br />one specific exception. That exception provides that if
<br />GVIC were to enter into a contract for the construc,
<br />tion, or 0 & M of salinity improvements without first
<br />obtaining the approval of its shareholders with an
<br />amendment to GVIC's Articles of Incorporation, then
<br />the Plaintiffs would be permitted to bring suit to
<br />determine if GVIC possessed the legal authority to
<br />enter into such contracts. In connection with settle-
<br />ment, Reclamation agreed to pay 90% of GVIC's legal
<br />costs and expenses for this lawsuit.
<br />
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<br />,.. .".,..,...G\l1c...nOAR:l::)MEM1J:ERS',....,........i.....'..,'"
<br />
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<br />
<br />Dennis Hardrick "'. .....,..".,~ .... .',".n~)I;!~iryH~tClJ.iD,~
<br />Bob Raymond ' JamesG;riSier
<br />Henry Gieske '
<br />
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<br />*Indieates Construction ConunitteeMembcr
<br />
<br />Office Personnel
<br />Phil Bertrand, Superintendent.,.'
<br />Charlie Guenther, Asst. Superintendent
<br />Judy Bridge, Secretaryfl'reasurer '
<br />
<br />8
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