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<br />I, <br /> <br />Red Mesa Dam Contract <br />Page 3 <br /> <br />Task (continued) Enqr Hours <br />11. Evaluate and obtain the land needed for potential <br />enlargement of the reservoir, to be performed by <br />the Company. . 0 <br /> <br />12. Prepare a feasibility report, describing the findings <br />and recommendations to support a request for <br />construction funds from the CWCB. 16 <br /> <br />Estimated Engineering Hours <br /> <br />216 <br /> <br />HWE will charge $60 per hour for engineering time plus the actual <br />cost for associated expenses (telephone, copies, drafting, etc.). <br />The cost for preparation of the study is estimated to be $14,000 <br />(216 hours @ $60/hour plus $1,040 for associated expenses). HWE <br />costs will be. based upon actual hours required, if less than <br />$14,000, but will not exceed 514.000, without specific written <br />approval by the OWNER, based upon an increase in the scope of <br />services. EWE will notify the OWNER immediately if an issue arises <br />that may increase the scope of serviceQ <br /> <br />The request to the CWCB' is based on. a timate of $20,000 to <br />conduct the feasibility study, not $14,000. This allows $6,000 in <br />contingencies if other services are required, such as surveying. <br /> <br />HWE will make every attempt to pe~ the services in time for <br />inclusion in the CWCB construction-f~ng process in the fall of <br />1994, so if a plan is feasible construction funds area available in <br />1995. EWE will maintain regular contact with the OWNER during the <br />course of the study period. Q <br /> <br />Invoices will be submitted at e b ginning of each month for the <br />previous months work. A charge 1% per month will be added, if <br />not paid within 45 days; the charge will begin on the 45th day. <br /> <br />HWE carries errors and ~~s insurance coverage for $100,000. <br /> <br />Thank you for this oppo to perform engineering services. <br />Please call if you have any questions. <br /> <br />Sincerely, <br /> <br />~~ e/tf~ <br /> <br />Steven C Harris <br />President, Harris Water Engineering, Inc. <br /> <br />By: <br /> <br /> <br />day of 1'//f.;J rt.!-tf <br /> <br />, 1994. <br /> <br />Accepted this J LJ <br /> <br />: <br /> <br />Reservoir and Ditch Company <br />