Pav•d Highway
lmprav•d Dirt or Grav•l Rood North Po<Jdr• Irrigation CDmpony
Canals and Ditchu.
G•Mrol Ar.a lrrioat.d und•r Norf11 Poudr• Irrigation Syor.m.
- B-6
R. - B-5
THE NORTH POUDRE IRRIGATION COMPANY
DIRECTORS
Manuel Pineda ... Fort Collins, Colorado Carl J. Judson, Jr ... Livermore, Colorado Dennis Marsh ... Fort Collins, Colorado Duane Aranci ... Fort Collins, Colorado Dorothy Schild ... Fort Collins, Colorado
OFFICERS
Manuel Pineda ... President Duane Aranci ... Vice President Robert L. Stieben ... Manager Vi Proctor ... Secretary/Treasurer
ORDER OF BUSINESS
According to the By-Laws, the order of business of the stockholders meeting shall be as follows:
1. Meeting called to order by the chairman at 10:00 a.m.
2. Appointment of three stockholders of the Company as a credentials committee
3. Registration of proxies with credentials committee 4. Report of credentials committee
5. Annual report
6. Nomination of directors
7. Opening of polls for election of directors 8. Old business
9. New business
(A) Vote on assessment for the year
The 1990 irrigation season certainly taxed the resources of the Company, its management staff and its employees, who performed their duties with utmost diligence in getting the irrigation water to the extreme ends of the system, despite the low amount of water they had to deliver. The Board commends the manager and crew for their performance. Scattered rains through the summer were always welcomed.
North Poudre Irrigation Company in early 1990 authorized Duane Smith, P.E. to proceed with the design for the rehabilitation of #2 Reservoir to be submitted to the Office of the State Engineer for approval. All the paperwork for the permits and other documents that needed to be approved by the State Engineer and the funding agreement with the Colorado Water Conservation Board went through with comparative ease. The cooperation and the assistance received from those two state agencies in the last nine years of reservoir rehabilitation and planning with North Poudre is greatly appreciated.
On the 8th of August eight bids were received for the rehabilitation of Reservoir #2. The low bid of $465,394.00 was submitted by National Construction of Boulder.
Construction started on #2 Reservoir in early October, with a completion date of May 1, 1991. Due to excellent weather conditions and the motivation provided by Jay Dawe, National Construction owner, the project is ahead of schedule and about 90°/o completed. The Company and Duane Smith, P.E. have been very satisfied with the construction progress to date.
For the past five years, the Board has been considering the idea of employing a professional engineering consulting firm. The purpose and goal in mind is to give the Board a much broader and detailed view of all the aspects of any of the major projects North Poudre will be facing, which would include, but not be limited to, the feasibility and rehabilitation of major projects, economic evaluation of the company and investigating the impact on North Poudre of other basin water transfers. To that extent the Board interviewed three major consulting firms from the Northern Colorado area.
In early November, the Board formally employed the services of the firm of Leonard Rice Consulting Water Engineers, Inc. of Denver, Colorado.
North Poudre was involved in several real estate transactions in 1990.
A 40 acre tract of land on the east side of #2 Reservoir was acquired at
public auction from the United States Bureau of Land Management. Most
An 80 acre parcel of land that was acquired and no longer needed for the Boxelder Flood Control Project at the B-2 site was sold at public auction.
This land was owned jointly by Larimer County and North Poudre.
The Bubbles reservoir site was sold without any water rights. It was sold by private treaty to Thurman and Beryl McGraw and to Gene and Marylynn Fischer, who are adjacent landowners.
The City of Thornton's water rights filings and applications in District Court, Water Division No. 1, have been the subject of much concern and discussion within the Cache La Poudre Water Users Association the past year. This whole issue will be going to water court July 19, 1991.
There are several major capital expenditures facing the Company in 1991.
They are the completion of Reservoir #2, installing a sleeve in the outlet conduit of Reservoir #3, replacement of the Case backhoe, and applying conservation measures to some sections of the delivery system of canals and laterals. There have been no plans made to renovate #5 and #6 Reservoirs in the immediate future.
For the past ten years North Poudre has acted as a working irrigation model for foreign students at Colorado State University who are majoring in water and agricultural engineering. The Company has provided information for the students for the various operational aspects of the North Poudre system. Information on technical water data has been provided to them from North Poudre water records.
Throughout 1990 North Poudre and the City of Fort Collins continued to meet and discuss the Halligan Reservoir Enlargement Project. In August the City presented a first draft agreement to the Company for review by the board of directors. This draft has been studied and discussed with our consulting firm, Leonard Rice Company. The plan at this writing is to submit a revised draft of the agreement to the City early in 1991. The Company and the City have both been encouraged by the cooperative attitude displayed in all of our meetings and discussions this past year. The agreement relating to the expansion of Halligan Reservoir between the Company and the City has been extended by the Board to December 31, 1991.
The completion of #2 Reservoir is the last of the major capital improvements program that started almost ten years ago. It has been an expensive project, but it is one that we believe was a good investment, and the Board is proud of its stockholders who persevered through this endeavor. Again, thank you!
3
The Board of Directors appointed an editorial Board to compile and distribute a newsletter at the request of the stockholders at the last Annual Meeting.
The editorial board is George Wallace, Chairman, Mike DiTullio, Darryl Smika, Tom Evans, Lewis Grant, Shirley Ferree, Francis Bee and Mary Ann Krehbiel.
The North Poudre Board of Directors agreed to pay the expenses for the newsletter with the editorial Board to do the preparation.
The North Poudre Irrigation Company Board encourages your attendance at the annual stockholders meeting. We hope to see you all there.
Respectfully Submitted, Manuel Pineda, President of the Board of Directors
RECOMMENDED BUDGET FOR 1991
$ 8.00 for water assessment 21.00 for loan retirement
9.00 for reservoir rehabilitation
37.00 for operation, maintenance and weed control
$75.00
$45.00 per share due and payable April 1, 1991, interest at 11f20/o per month charged after May 1, 1991.
$30.00 per share due and payable October 1, 1991, interest at 11120/o per month charged after November 1, 1991.
No water will be delivered on delinquent accounts.
Total assessments of $75.00 per share are due April1, 1991 on two shares
or less.
The winter of 1989-1990 did not provide a substantial amount of snow for the water shed of the Cache La Poudre Basin. Beginning the night of March 5, 1990 about 2" of rain fell followed by a snowstorm that dropped up to 5 feet of snow in the Virginia Dale and Livermore areas. A total of more than 5" of precipitation fell during March to bring the snowpack up to as much as 1300/o of normal on some snowcourses in the Basin. The heavy precipitation and cool weather during the first part of April delayed field work and the planting of crops.
Unfortunately the watershed west of the Continental Divide received less than normal precipitation for the third consecutive year and the supply of water in the Colorado Big Thompson Project had fallen to dangerously low levels. Therefore the Northern Colorado Water Conservancy District Board of Directors set the quota at 50°/o, or one-half acre foot to be delivered on each acre-foot unit. This reduced the amount of water available from CBT to North Poudre from 40,000 acre feet in 1989 to 20,000 acre feet for 1990.
Very hot weather the last half of June had everyone wondering how they could possibly spread the reduced amount of water over the entire growing season. Once again Mother Nature intervened. July 5 marked the beginning of a cool, rainy period that persisted until the middle of August.
The reduced need for water during this period left enough water to finish the crops to maturity. The yields of crops under the North Poudre service area were above average in 1990, however the quality of malting barley was damaged by the prolonged period of rainy weather.
An appropriation of penalty water was made April 4, 1990 for one acre foot of water per share to be run by May 1 , 1990 and another appropriation was made April 23, 1990 for an additional acre foot per share to be used by May 16, 1990. These appropriations were made by the board of directors so that the ditches could be started when enough orders were received to make it feasible. There were not enough orders placed to start any of the ditches so no water was delivered on these appropriations. The system was brought into operation beginning May 14. Deliveries of an additional1 1 h acre feet of penalty water continued until June 25. Seasonal appropriations totalled 3112 acre feet per share.
The table on page 6, "Annual Cost Comparison," has been revised to
give a more accurate year-to-year comparison of the per acre foot cost
of water. The actual deliveries per share, both penalty and seasonal water,
rather than the total appropriation, is divided into the assessment for each
year. This gives an annual cost per acre foot of water delivered.
The large amount of moisture that fell during March caused a substantial amount of rock to dislodge from the roof and sides of the Livermore tunnel.
Clearing the tunnel of debris is a slow process, however maintenance personnel completed the job in time to move water from Halligan reservoir into Park Creek reservoir as soon as sufficient snow had melted from the ditch.
The mild dry weather up to the middle of December allowed us to perform a great deal of maintenance throughout the system. Some trees were trimmed and some must be removed to provide access for cleaning ditches, several miles of ditches were cleaned and reshaped, extensive repairs have been made on concrete structures, and soil active herbicides were applied in appropriate places. All maintenance of equipment, other than major repairs, is done by Company employees.
With the supply of carryover water below normal levels for this time of the year we can only be optimistic that an abundant snowfall will accumulate in the mountains and that adequate precipitation will be forthcoming during this next crop year.
Year Assmt. Ac.Ft/Share Cost per
delivered Ac.Ft.
1985 100.00 4.31 23.20
1986 75.00 5.65 13.27
1987 75.00 4.03 18.61
1988 70.00 4.80 14.58
1989 75.00 4.25 17.65
1990 75.00 4.48 16.74
Source
Storage - November 1 , 1989 North Fork
Munroe Canal
Acre Feet
17,236 33,522 21,341
Distribution
Storage - November 1 , 1990 Stockholders
Rental from #5 Nature Conservancy
Evaporation & distribution loss
Fossil Creek Reservoir
Preferred Rights Exchanged for CBT Rental
Exchange
Carry-over
CBT Quota - 500/o
72,099
12,248 43,060 1 '111
640 57,059 15,040 72,099
3,420 3,825 2,500 9,745 4,884 14,629 500 15,129
20,000
Dividends Acre Feet Per Share
April 4, 1990 April 23, 1990 May 9, 1990 May 9, 1990 June 6, 1990 June 6, 1990 July 28, 1990
(Penalty - no deliveries) 1.0 (Penalty- no deliveries) 1.0
(Penalty) .5
(Seasonal) 2.0
(Seasonal) 1 .0
(Penalty) 1.0
(Seasonal) .5
7.0
ANNUAL PRECIPITATION IN INCHES
Year Wellington Cactus Buckeye Livermore
1960 8.84 9.61 7.67
1961 24.95 19.38 18.51
1962 13.90 9.67 13.18
1963 12.10 9.70 11.84
1964 5.64 4.51 5.21
1965 16.50 11.55 15.46
1966 8.21 4.74 8.10
1967 22.52 18.28
1968 10.26 9.18 8.49 4.80
1969 15.39 15.80 14.83 15.82
1970 11.48 14.22 9.61 13.71
1971 13.27 13.04 10.57 12.45
1972 13.50 15.02 10.87 11.22
1973 10.90 15.11 11.10 14.64
1974 8.84 10.65 9.56
1975 11.13 11.90 7.48
1976 10.39 7.00 10.77
1977 10.35 9.72 13.88
1978 10.25 12.87 11.70 15.03
1979 19.59 20.78 16.27 21.50
1980 13.51 12.58 14.61 17.61
1981 12.93 12.01 15.48 14.56
1982 19.07 17.63 18.36 16.64
1983 16.68 18.73 17.67 20.73
1984 13.44 13.51 16.26 20.86
1985 12.73 10.19 10.30 12.06
1986 11.41 8.15 11.24 9.50
1987 9.87 9.40 10.58 14.93
1988 11.51 9.10 10.89
1989 14.26 10.59 11.98 10.20
1990 14.93 11.97 18.22 21.30
HILL, HILL & MANGES, P.C.
Attorneys at Law A Professional Corporation Fort Collins, Colorado 80522
December 24, 1990
We have now represented The North Poudre Irrigation Company for the last 23 years. We appreciate the opportunity to serve and work for the shareholders and officers of North Poudre.
Through December 5, 1990, we spent 300 hours on matters relating to the Company on general work and an additional 48 hours specifically directed to work relating to Number 2 Reservoir.
Alden V. Hill attends the regular board meetings and special meetings when requested.
Continuing efforts are being made to see if an enlargement of Halligan Reservoir is possible; how this would be financed; and who would own the reservoir if enlarged. Discussions have been held with the City of Fort Collins. There is potential for some type of contractual arrangement of sale or exchange of Halligan which would be beneficial to the shareholders.
North Poudre has closely followed the situation at Mountain Range Shadows south of Fort Collins. This subdivision was discharging untreated sewage effluent into Fossil Creek Reservoir. This subdivision now has become a part of South Fort Collins Sanitation District, thus ending this problem. Michael DiTullio, a North Poudre stockholder, manages the South Fort Collins Sanitation District and worked on behalf of the Sanitation District toward the solution that will be beneficial to all concerned.
Time was spent working on the legal aspects of the rehabilitation of Reservoir No. 2. This rehabilitation will be accomplished with the assistance of funding from the Colorado Water Conservation Board. As this project was going forward, it was discovered that approximately 15 acres of land south of the dam was owned by Douglas G. Kayne, Shirley J. Kayne and Gregory S. Kayne. For a time, it looked as though a condemnation action would have to be brought to acquire this ground.
After a substantial amount of preparation, survey work, and appraisal work, an amicable solution was reached and the necessary land was deeded to North Poudre. Construction got under way without a hitch, thus taking advantage of the unusually warm and dry fall weather. Reports and observations at the site suggest that the work is going well.
9
The City of Thornton water transfer application has been set for trial in the Water Court in Greeley in 1991. Trial will start about July 29, 1991.
Prior to this trial, there will be a trial on certain rights applied for relating to storage on the Poudre River filed by the Northern Colorado Water Conservancy District. This trial is to begin about March 11, 1991. As the area grows, there will be more protracted battles over water. The nature of the changes in our area is illustrated by the fact that the City of Fort Collins now owns 2,650.25 shares of stock in The North Poudre Irrigation Company, out of a total of 10,000 authorized. There is also stock owned by water districts and some towns.
There continues to be a surprising number of subdivision or minor residential developments that are developing in or around ditches and reservoirs in the North Poudre system. We receive information on these matters from the County and North Poudre participates in an effort to protect the property rights of the stockholders, and avoid future claims.
There continue to be constant problems with lost stock certificates. All stockholders should know where their stock certificates are located, and certificates should be kept in a safe place. A lost instrument bond is expensive. Also, it will save frustration if effort is made to find out from North Poudre in advance what requirements are necessary when stock is transferred. Normally signatures must be authenticated, which means guaranteed by a national bank or brokerage company. This is required in an effort to guard against any fraud in a transfer.
As this report is concluded, our area is gripped by sub-zero temperatures and the world waits to see whether war can be averted in the Middle East.
We pray 1991 will bring a year without war and for health and prosperity for the stockholders of The North Poudre Irrigation Company.
Respectfully submitted, HILL, HILL & MANGES, P.C.
Alden T. Hill Richard Manges Alden V. Hill John T. Vap, Associate Attorneys at Law
160 West Mountain Avenue Fort Collins, Colorado 80522 Telephone: 482-3683
"'!
Shirley Ruhser died October 8, 1990 after a short but very painful illness.
She worked for North Poudre for eight years, mostly during water season, taking water orders from water users, relaying those orders to the ditchriders, trying to coordinate deliveies on some small laterals, and making a permanent Company record of water deliveries for each year.
She also did some clerical work when time was available.
Shirley took it upon herself to ride with each of the ditch riders at least once on his daily run to familiarize herself with features of the system.
This enabled her to better understand the needs of water users and to be able to deal with problems when they arose. She was a very caring person who always tried her best to help people with their problems. Her cheery smile and outgoing personality will be remembered by all who knew her.
11
The employees of North Poudre are saddened by the loss of a true friend and dedicated co-worker.
Submitted by
Robert L. Stieben,
Manager
Board of Directors
North Poudre Irrigation Company Wellington, Colorado
November 12, 1990
We have audited the accompanying balance sheets of the North Poudre Irrigation Company as of October 31, 1990 and 1989, and the related statements of income and retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the North Poudre Irrigation Company at October 31, 1990 and 1989, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
Respectfully submitted,
Brock, Watkins & Schommer Certified Public Accountants
1
J
'l
J
North Poudre Irrigation Company Wellington, Colorado
1 Balance Sheet
October 31, 1990 and 1989
J ASSETS
Current Assets 1990 1989
Cash in the Bank 123,263 187,670
Investments (Note 1) 205,119 12,578
Assessments Receivable 23,090 29,649
Other Accounts Receivable 55,066 6,630
Notes Receivable (Note 2) 2,971 2,689
Accrued Interest Receivable 1,179
Prepaid Expense 7,590 6,353
Total Current Assets 418,278 245,569
Property Assets (Notes 1 and 3)
Land 336,070 266,260
Construction in Progress 239,087 53,037
Priorities, Water Rights, and Easements 693,804 693,804 Ditches and Reservoirs 10,034,002 10,034,002
Buildings and Improvements 113,473 113,473
Radio and Office Equipment 44,896 44,531
Machinery and Equipment 170,767 169,110
Transportation Equipment 85,083 66,494
Total 11,717,182 11,440,711
Less: Accumulated Depreciation (2,373, 172) (2,261 '758)
'\ Total Property Assets 9,344,010 9,178,953
J Other Assets
Stock of Other Companies (Note 1) 17,941 17,941
Notes Receivable (Note 2) 16,233 19,204
Total Other Assets 34,174 37,145
Total Assets 9,796,462 9,461,667
The accompanying notes are an integral part of these financial statements.
Exhibit A
LIABILITIES
Current Liabilities 1990
Notes Payable (Note 3) 43,361
Accounts Payable- Trade 145,623
Accounts Payable -
Water Purchase (Note 4) 60,000
Accrued Interest 72,072
Payroll Withholding Payable 519 Accrued Compensated Absences 8,346
Accrued Wages 8,898
Total Current Liabilities 338,819
Long-Term Liabilities (Note 3)
Notes Payable 2,982,577
Total Liabilities 3,321,396
STOCKHOLDERS' EQUITY Paid in Capital
Common Stock (1 0,000 Shares Authorized,
$50 Par Value, 10,000 Shares Issued, 9,995 3/4 Outstanding in 1990 and 9,996
Outstanding in 1989) 500,000
Additional Paid in Capital 3,450
Total Paid in Capital 503,450
Retained Earnings Total Paid In Capital
and Retained Earnings Less: Treasury Shares at Cost
(4% in 1990 and 4 in 1989) Total Stockholders' Equity Total Liabilities
5,973,013
6,476,463 (1 ,397) 6,475,066
1989 41,918 11,212 60,000 62,891 525 8,030 184,576
2,918,822 3,103,398
500,000 3,450 503,450 5,854,966
6,358,416
(147)
6,358,269
North Poudre Irrigation Company Wellington, Colorado
Statements of Income and Retained Earnings For the Years Ended October 31, 1990 and 1989
Operating Revenues 1990 1989
Assessments 750,296 750,2n
Other Operating Income 104,499 137,211
Recreational Leases 61,790 76,022
Reimbursements 10,229 6,732
Stock Transfer Fees 5,200 5,440
Total Operating Revenues 932,014 975,682
Operating Expense
Salaries and Wages 229,951 202,938
Depreciation 114,064 114,561
Water Purchased and Assessments 75,057 73,588 Repairs and Maintenance, Buildings,
Ditches, Reservoirs, and Equipment 69,695 59,945
Legal Fees 32,769 26,653
Insurance 28,149 33,136
Weed Control 25,368 16,160
Employee Benefits 19,631 20,827
Payroll Taxes 18,232 18,912
Directors' Fees and Expense 14,903 21,043
Ditch Riders' Expense 12,475 12,483
Office and Other Expense 11,844 13,804
Utilities and Telephone 11,375 10,890
Gas and Oil 10,775 11,177
Vehicle and Other Taxes 3,253 2,511
Accounting Fees 2,600 2,600
Mileage 2,492 4,232
Machine Hire 1,544 784
Engineering Fees 833 3,461
Total Operating Expense 685,010 649,705
Income From Operations 247,004 325,977
The accompanying notes are an integral part of these financial statements.
Exhibit B
15
North Poudre Irrigation Company Wellington, Colorado
Statements of Income and Retained Earnings For the Years Ended October 31 , 1990 and 1989
Other Income (Expense) 1990 1989
Interest Income 13,613 8,620
Oil and Gas Royalties 14,468 15,563
Interest Expense (157,038) (129,417)
Total Other Income (Expense) (128,957) (105,234)
Net Income 118,047 220,743
Beginning Retained Earnings 5,854,966 5,634,223
Ending Retained Earnings 5,973,013 5,854,966
The accompanying notes are an integral part of these financial statements.
Exhibit 8
North Poudre Irrigation Company Wellington, Colorado
Statements of Cash Flows
For the Years Ended October 31 , 1990 and 1989
Cash Flows From Operating Activities Net Income
Adjustments to Reconcile Net Income to
1990 118,047 Net Cash Provided by Operating Activities:
Depreciation 114,064
Decrease (Increase) in Assets:
Assessments Receivable Other Accounts Receivable Accrued Interest Receivable Prepaid Expenses
Increase (Decrease) in Liabilities:
Accounts Payable Accrued Expenses
Net Cash Provided by Operating Activities Cash Flows From Investing Activities
Collection of Loans Receivable Purchase of Equipment and
Property Assets
Purchase of 114 Share Treasury Stock Net Cash Used by Investing Activities Cash Flows From Financing Activities
Proceeds From Short-Term Debt Proceeds From Long-Term Debt Repayment of Short-Term Debt Repayment of Long-Term Debt Net Cash Provided by Financing Activities Net Increase (Decrease) in Cash and
Cash Equivalents
Beginning Cash and Cash Equivalents Ending Cash and Cash Equivalents
6,559 (48,436)
(1 '179) (1 ,247) 134,411
18,389 340,618
2,689 (279, 121)
(1 ,250) (277,682)
61,210 106,495 (61 ,21 0) (41 ,297) 65,198
128,134 200,248 328,382
The accompanying notes are an integral part of these financial statements.
