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<br />"Nov-02-2004 02:56pm From- <br />i( ~ _, <br />. <br /> <br />1-589 P.002/003 F-338 <br /> <br />November 2, 2004 <br /> <br />Tim Feehan <br />Design and Construction Manager <br />Colorado. Water Conservation Board <br />1580 Logan Street, Room 750 <br />Denver, CO 80203 <br /> <br />Subject: Pine River Bayfield Ditch Company (pRBDC) - Beaver Creek Siphon <br />Replacement . <br /> <br />Dear Tim, <br /> <br />This letter isa follow-up response to our telephone conversation o~ Monday, October 25, <br />2004. As.! explained, we had our on-site pre-bid meeting with four construction entities <br />. that expressed an interest in bidding on the Beaver Creek Siphon Rep1acement.(project). <br />These entities are: Gosney and Sons Inc., Diamondback Excavation. Tucker R <br />ConstrUction, and Five Star ContractiD.g. Several members of the-Board, admii'listration <br />and ConstrUction Oversight Committee (COC) were also present. We emphasized that <br />each bid should be predicated on a ''turn-key'' constiuction effort, with no add-ons, _ <br />change orders~ or bid modifications to complete the project The PRBDC Board (Board) <br />and COC met on October 18,2004, to open the bids. Only one entity submitted a bid- <br />Gosney and Son, Inc. Their bid was $] 80,610.00. . <br /> <br />Regarding your request for an explanation of need~ additional funds, 1 offer the <br />following: On May 20,.2003, the Board secured a constrUction loan through the <br />Colorado Water Conservation Board (CWCB) for $202,000.00 to complete the Project. <br />This value includes a one percent loan origination fee and a contingency factor to 'cover <br />incidental and unforeseen cost associated with the Project. The $202,000.00 loan amolUlt <br />was predicated on a February 12, 2002, Project construction cost estimate of $172,000.00 <br />from Natural Resources Conservation Service (NRCS) in Dmango, Colorado. The . <br />replacement cost estimate provided by NRCS was approximately 47 percent short of the <br />bid we received from Gosney and Sons Inc. (i.e., $252,000.00 (October 2004, cost to <br />replace the siphon as computed below) . $172,000.00 (NRCS cost estimate) I <br />$172,000.00 X 100 = 47%). The contingency factor used in developing the $202,000.00 <br />loan amount, coupled with the dated NRCS constrUCtion cost estimate, were not <br />sufficient to cover the actUal costs the Board and COC now face to replace the siphon. <br /> <br />To date, we have spent $65,955.00 for siphon pipe. This leaves an available balance of <br />approximately $136,045.00 to complete the Project. With Gosney and Sons Inc. bid of <br />$180,610.00 we have a deficit of$44,565.00. In addition, (in round numbers) we are <br />adding $5,435.00 for the oversight services ofa professional engineer as required by <br />CWCB. (Unfortunately, the NRCS is unable to assist us with a profeSSional engineer to <br /> <br />1 <br />