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<br />portion of the ditch. These slope failures were most likely caused by ditch flows saturating the surrounding <br />soil and becoming perched on top of the underlying bedrock layer, and the surcharge of the fill on the <br />downhill side of the ditch. <br /> <br />In the summer of 2003, the Company was in jeopardy of losing a significant portion of their ditch. <br />In an attempt to address the problem the Company elected to enclose 1,060 linear feet of ditch where the <br />two slope failures had occurred, with 60-inch corrugated steel pipe. Additionally, to stabilize the slope <br />failure areas the Company installed soil nails to restrict the failed areas from migrating any further. <br /> <br />In the fall of 2003 the Company hired the services of Northwest Colorado Consultants, Inc., <br />Steamboat Springs, Colorado, to evaluate the slope failures, the improvements in-place, and to make <br />recommendations on how to stabilize the ditch on a long-term basis. In December of 2003, Northwest <br />Colorado Consultants completed a feasibility study to address these problems, which was submitted to the <br />Colorado Water Conservation Board in January of 2004 for funding consideration. The report <br />recommended that the existing 60-inch corrugated steel pipe be modified with water tight bands, concrete <br />headwalls be constructed on the upstream and downstream end of the pipe to minimize water flow under <br />the pipe, failed slope areas be regraded and revegetated, and the exposed soil nails be covered with <br />shotcrete. <br /> <br />Table 1 below is a brief summary of the major project elements and their estimated cost as <br />presented in the original feasibility study: <br /> <br />Table 1. Project Cost Summary <br /> <br />Item <br />1. 1,060 1.f. of60-inch CSP (already constructed) <br />2. Soil Nailing (already constructed) <br />3. Water Tight Joint Bands <br />4. Concrete Headwalls @ Inlet/Outlet <br />5. Shotcrete Soil Nail Areas <br />6. Remove/Regrade Failed Slope Areas <br />7. Revegetation and Erosion Control <br />Subtotal: <br />8. Engineering <br />Total: (Completed Project) <br /> <br />Estimated Cost <br /> <br />$63,924 <br />$38,000 <br />$83,125 <br />$20,000 <br />$18,000 <br />$92,000 <br />$18,000 <br />$333,049 <br />$10,000 <br />$343,049 <br /> <br />Since the Board's approval of these improvements in January of 2004, the Company has had <br />concerns over the long-term performance of the failed slope remediation efforts proposed by Northwest <br />Colorado Consultants. Given the severity of the problem and the significant hardship and monetary loss <br />that the Company would incur if another failure would occur, the Company elected to obtain a second <br />engineering opinion on the failed slope areas. <br /> <br />In the spring of2004, the Company hired the services of Kumar and Associates, Denver, <br />Colorado to evaluate the slope failure areas and to prepare an alternative analysis to address the <br />problem. Kumar's efforts involved exploratory borings and field reconnaissance of the surface and <br />subsurface to determine the condition of the soils within the failed slope areas. Based on their soil <br />findings and field survey, Kumar recommended that stabilization measures be taken at the head of the <br /> <br />2 <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />