Colorado § 37-41-113 - Board of directors - duties - contracts - rules.

§ 37-41-113. Board of directors - duties - contracts - rules.

(1) The directors, having duly qualified, shall organize as a board, elect a president from their number, and appoint a secretary. The board has power and it is its duty to adopt a seal, manage and conduct the affairs and business of the district, make and execute all necessary contracts, employ such agents, attorneys, officers, and employees as may be required and prescribe their duties, and establish equitable rules and regulations for the distribution and use of water among the owners of said land. The board shall generally perform all such acts as shall be necessary to fully carry out the purposes of this article.

(2) Said board may also enter into any obligation or contract with the United States for the construction or operation and maintenance of the necessary works for the delivery and distribution of water therefrom, or for drainage of district lands, or for the assumption, as principal or guarantor, of indebtedness to the United States on account of district lands, or for the temporary rental of water under the provisions of the federal reclamation act and all acts amendatory thereof or supplementary thereto or any other federal laws which do not conflict with the constitution and laws of the state of Colorado and the rules and regulations established thereunder, or the board may contract with the United States for a water supply under any act of congress providing for or permitting such contract and may convey to the United States as partial or full consideration therefor water rights or other property of the district. In case contract has been made with the United States, bonds of the district may be deposited with the United States at ninety-five percent of their par value, to the amount to be paid by the district to the United States under any such contract, the interest on said bonds, if bearing interest, to be provided for by assessment and levy, as in the case of other bonds of the district, and regularly paid to the United States to be applied as provided in such contract, and, if bonds of the district are not so deposited, it is the duty of the board of directors to include, as part of any levy or assessment now provided for by law, an amount sufficient to meet each year all payments accruing under the terms of any such contract. Districts cooperating with the United States may rent or lease water to private lands, entrymen, or municipalities in the neighborhood of the district in pursuance of contract with the United States and under terms and conditions not inconsistent with the laws of Colorado.

(3) Such board has the power, in addition to the means to supply water to said district proposed by the petition submitted for the formation of said district, to construct, acquire, purchase, or condemn any canals, ditches, reservoirs, reservoir sites, water, water rights, rights-of-way, or other property necessary for the use of the district or to acquire by condemnation, or otherwise, the right to enlarge any ditch, canal, or reservoir already constructed or partly constructed. In case of the purchase of any property by said district, when it shall be proposed by the board of directors to purchase a system of irrigation already constructed, or partially constructed, and to enlarge and complete the same adequate to the needs of the district, the board in such case may embody in one contract the matter of the purchase, the enlargement, and the completion of such irrigation system without inviting bids for such construction and completion; and, in case of the purchase of such property by said district, the bonds of the district provided for in section 37-41-117 may be used at their par value in payment without previous offer of such bonds for sale.

(4) (a) A contract involving a consideration exceeding four hundred thousand dollars but not exceeding six hundred fifty thousand dollars is not binding unless the contract has been authorized and ratified in writing by not less than one-third of the legal electors of the district according to the number of votes cast at the last district election.

(b) A contract in excess of six hundred fifty thousand dollars is not binding until the contract has been authorized and ratified at an election in the manner provided for the issue of bonds.

(5) Where the compensation to be paid by the district to the owner of any property which the board of directors of an irrigation district is authorized to take by proceedings in eminent domain has been finally determined to be in excess of twenty-five thousand dollars, sufficient time shall be given by the courts for the submission to and determination by the electors of the district, at a regularly called election in the district, of the question of whether the district shall pay said compensation or shall abandon such condemnation proceedings. If the electors shall authorize the payment of such compensation, the necessary additional time shall be given the district to pay such compensation, either by levy and collection of assessments against the lands of the district, or by the issue and sale of bonds of the district, or by both such methods as may be determined at a district election. Where the compensation to be paid shall be more than ten thousand dollars and less than twenty-five thousand dollars, the district board may elect to pay such compensation or abandon such condemnation proceedings upon authorization in writing by not less than one-third of the legal electors of said district according to the number of votes cast at the last district election.

(6) The rules and regulations shall be printed in convenient form, as soon as the same are adopted, for distribution in the district. All waters distributed shall be apportioned to each landowner pro rata to the lands assessed under this article within such district. But all water which has been acquired by the district by virtue of the laws of Colorado may be distributed and apportioned according to the terms of any contract entered into between the district and the United States, until the obligation due the United States is paid or the obligation to pay is discharged in any manner. Nothing in this article shall be deemed or construed to grant or relinquish to the United States any of the sovereign rights of the state of Colorado in and to the waters within its borders, or its exclusive authority over and jurisdiction and control of said waters, and the diversion, appropriation, and use thereof nor in any manner change the methods of appropriation thereof.

(7) The board of directors has power to lease or rent the use of water, or contract for the delivery thereof, to occupants of other lands within or without the said district at such prices and on such terms as it deems best, but the rental shall not be less than one and one-half times the amount of the district tax for which said land would be liable if held as a freehold. No vested prescriptive right to the use of such water shall attach to said land by virtue of such lease or such rental; except that any landowner in said district, with the consent of the board of directors, may assign the right to the whole or any portion of the water so apportioned to him for any one year where practicable to any other bona fide landowner, to be used in said district for use on his land for said year, but such owner shall have paid all amounts due on assessments upon all such lands.

(8) The board of directors further has power to lease or rent the use of water, or to contract for the delivery thereof, to settlers upon or occupants of the public domain, whose entries shall not have been subordinated to the district through compliance with the act of congress approved August 11, 1916, on the terms as provided in this section; except that, in such case, the board of directors has the further power to make a contract on behalf of the district with such settler or occupant to the effect that such settler or occupant, upon receiving full title to his lands and upon the payment of his proportionate share of the bond assessments as provided in section 37-41-136, shall include his lands within said district and, upon such inclusion, shall be entitled to all the rights and privileges of a member of said district. Before the execution of such contract the board of directors shall cause notice of such contract to be given substantially as provided in section 37-41-134, with such changes in the form of the notice as may be necessary, and a hearing upon said contract and all objections thereto shall be had as provided in section 37-41-135. If upon said hearing the board of directors deems it not for the best interests of the district to execute said contract, it by order shall refuse to execute said contract; but, if it deems it for the best interests of the district that said contract be executed, the board may execute said contract, and, in such case, said contract shall be valid and binding upon all parties thereto; and, when the said settler or occupant shall have complied with said contract and obtained title to his lands, upon proof of such compliance and obtaining of title, and without any further notice or hearing upon the matter, the board shall enter an order of inclusion of said lands as provided in section 37-41-137, but, if within thirty days from the execution of said contract a majority of the qualified electors of the district protest in writing to said board against the execution of said contract, the contract shall be held for naught and shall not be binding upon any party thereto.

(9) (a) The board of directors may enter into any obligation or contract to borrow money, which the irrigation district may use to issue loans to landowners:

(I) To make improvements to private water delivery systems; or

(II) For other types of projects that improve:

(A) Water conservation or efficiencies on landowner property; or

(B) Landowner delivery or drainage systems.

(b) An obligation or contract to borrow money described in subsection (9)(a) of this section is not subject to the requirements of subsection (4) of this section.

(c) The board of directors shall not assess district land in order to raise money to issue loans pursuant to this subsection (9). However, the board of directors, in its discretion, may use other sources of money for the purpose of issuing loans as described in this subsection (9).

(d) In case of default in the payment of any installment of principal or interest when due, the county treasurer may assess upon the eligible real property a tax lien for the payment of the whole of the unpaid installment of principal and interest; except that the county treasurer shall not assess a tax lien for the entire value of the landowner's portion of the irrigation loan issued by the water district.

(e) The board of directors may adopt rules concerning the issuance of loans to landowners pursuant to this subsection (9).

Source: L. 05: p. 253, § 11. R.S. 08: § 3450. L. 09: p. 422, § 1. L. 17: p. 293, § 3. L. 19: p. 470, § 3450. L. 21: p. 497, § 1. C.L. § 1970. CSA: C. 90, § 387. CRS 53: § 149-1-11. C.R.S. 1963: § 150-1-11. L. 71: p. 1346, § 1. L. 2006: (4) amended, p. 71, § 3, effective July 1. L. 2022: (9) added, (HB 22-1092), ch. 84, p. 406, § 4, effective August 10. L. 2025: (4) amended, (SB 25-140), ch. 58, p. 244, § 3, effective August 6.

ANNOTATION

Law reviews. For note, "A Survey of Colorado Water Law", see 47 Den. L.J. 226 (1970).

This section protects all property owners within district. This section was intended not merely for the protection of the electors who might vote, but for the protection of all of the property owners in the district. Colo. Irrigation Constr. Co. v. Nile Irrigation Dist., 69 Colo. 366, 194 P. 609 (1920).

An irrigation district may contract for the doing of the work for the district or it may contract for the delivery of a complete system of irrigation. Gas Sec. Co. v. Antero & Lost Park Reservoir Co., 259 F. 423 (8th Cir. 1919).

If it adopts the former plan, it must secure public bids for doing the work and follow certain other requirements. Gas Sec. Co. v. Antero & Lost Park Reservoir Co., 259 F. 423 (8th Cir. 1919).

The legislative act under which a district is organized authorizes the acquisition by purchase or condemnation of rights-of-way for ditches, canals, etc., by the district. North Sterling Irrigation Dist. v. Knifton, 137 Colo. 40, 320 P.2d 968 (1958).

Irrigation districts have the statutory right, under certain circumstances, to exercise the power of eminent domain. Riverside Irrigation Dist. v. Lamont, 194 Colo. 320, 572 P.2d 151 (1977).

This section gives the district board full power to conduct the business of the district, to make all necessary contracts, employ agents and attorneys, and to perform all acts necessary to carry out the purpose of the irrigation statute. Interstate Trust Co. v. Steele, 65 Colo. 99, 173 P. 873 (1918).

The board has power to employ attorneys to protect the rights and look after the interests of the district as a public corporation, but not to represent the individual directors in defending their right to hold a public office. Ellis v. Moses, 76 Colo. 214, 230 P. 802 (1924).

The board does not have power to employ attorneys to represent them as individuals in responding to, or defending against, a charge instituted by the people that they are usurpers, or to charge against the district the amount of the attorney fee which these individuals agreed to pay. Ellis v. Moses, 76 Colo. 214, 230 P. 802 (1924).

The directors may not employ one of their number as secretary, or superintendent, of the district. Warrants issued to a director for his salary in such position are void. Interstate Trust Co. v. Steele, 65 Colo. 99, 173 P. 873 (1918).

The board is without power to materially change plans authorized by the electors. Where the electors of an irrigation district vote to purchase an irrigation system to be completed according to certain plans and specifications prepared by an engineer, the district board is without power to authorize material changes in the plans and any contract entered into by the members thereof materially changing the system from that authorized by the electors, is illegal. Antero & Lost Park Reservoir Co. v. Lowe, 69 Colo. 409, 194 P. 945 (1921).

Acceptance of work by an irrigation district board under a void contract is without effect. Colo. Irrigation Constr. Co. v. Nile Irrigation Dist., 69 Colo., 366, 194 P. 609 (1920).

Action of two directors is valid. The absence of one of three directors of an irrigation district, he having had notice of the meeting, does not invalidate the action of the other two. Lockard v. People ex rel. Hasselbush, 80 Colo. 31, 250 P. 152 (1926).

In view of the general powers given to the board, the requirement of § 37-41-126 that claims be verified is not mandatory. Thus, the omission to verify does not deprive the board of the power given it by this section. Interstate Trust Co. v. Steele, 65 Colo. 99, 173 P. 873 (1918).

Warrants issued by a district are valid in the hands of a holder in good faith. Warrants of an irrigation district issued in payment of an obligation for which the district was liable are valid in the hands of one who receives them in the usual course of business, without notice of any defect in the title. Interstate Trust Co. v. Steele, 65 Colo. 99, 173 P. 873 (1918).

While a warrant drawn by irrigation district directors is presumed to be lawful, the treasurer may overcome the presumption in an action in mandamus against him to compel payment or registration. Ellis v. Moses, 76 Colo. 214, 230 P. 802 (1924).

Discretion exercised by the board, unless abused, cannot be reviewed by the court at the instance of a taxpayer. Antero & Lost Park Reservoir Co. v. Lowe, 69 Colo. 409, 194 P. 945 (1921).