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Jack Yates October 19, 1998 Page 2 Although the prior hydroelectric study is useful, there is considerable data now available regarding the watershed yield and new pipeline flows. For this reason, we suggest proceeding immediately with a brief $2,000 study to confirm the economic feasibility of hydro generation and how this would integrate with the pipeline design and costs. Again, we are assuming that the pipeline project needs to move into construction first. Ifhydroelectric generation appears to make sense, funding sources, more detailed evaluation, and the final design of these facilities should follow, but are excluded from the $2,000 fee. PIPELINE DESIGN On the basis of the projected flows and other technical information included in the other studies, we will design the replacement of the Cottonwood Creek pipeline, increasing the size to 14" as desired by the Town. The new pipe will replace the existing pipe from the Wye to Cabin Reservoir. The design drawing, specifications, and contract documents will be submitted for approval to the Colorado Water Conservation Board (CWCB) for approval. This effort will include providing aerial mapping with 5 foot contour intervals along the pipeline route from the water treatment plant to Cabin Reservoir. We will also need to survey the location of the existing pipeline, as the new line can not interfere with it during construction. Rock excavation will be a significant cost factor and the better the information available regarding the extent and hardness of rock, the better bidders will be able to refine their costs and keep costs down. According to available reports, sandstone is the predominant rock type expected along the pipeline route. The usual technique would be to retain a geotechnical engineer to report the depth and hardness of the rock. This is helpful, but contractors are often uncertain how to interpret the report, especially when they must decide whether their equipment can excavate the rock or if they will need to blast, which is considerably more costly. To provide better information, we will coordinate with the Town to retain Western Colorado Testing of Grand Junction to report the results of a two-day excavation effort utilizing a rock-excavating trencher. The trencher typically excavates through sandstone with little problems unless the sandstone becomes too hard. The cost for services from Western Colorado Testing and for trencher mobilization and on-site test digging is estimated to be $8,500. We will perform the Cottonwood Creek pipeline design as outlined above for a lump sum fee of $74,800. For this we have included all necessary surveying, coordinating with CWCB, coordinating the geotechnical investigation, preparing final drawings, specifications, and contract documents, and opinions of cost. We have also allowed for printing 25 sets of drawings and specifications, assisting with bidding, and evaluating bids.