PROJ01921

• Contract/PO #: C153832
• Contractor Name: DeWeese-Dye Ditch and Reservoir Company
• Contract Type: Loan
• Water District: 12
• County: Custer
• Bill Number: HB 98-1189
• Loan Projects - Doc Type: Approval Letter

Colorado Water Conservation Board
Department of Natural Resources
1313 Sherman Street
Denver, Colorado 80203
Phone: [phone]
FAX: [phone]

STATE OF COLOAADO

.

MEMORANDUM
(J!1lf!Df~t\fJet6ber~8,>t999)

Bill Owens
Governor

TO:

Colorado Water Conservation Board Members

Greg E. Walcher
Executive Director, DNR

Peter H. Evans
Director, CWCB

FROM: John Van Sciver, P.E.,
Mike Serlet P.E., Chief, Project Planning and Construction Section

DATE: September 17, 1999

SUBJECT: Agenda Item # 9.a., September 27-38, 1999, Board Meeting - Water
Project Construction Loan Program - Changes in Existing Loans -
DeWeese-Dye Ditch and Reservoir Co. - Reservoir Rehabilitation

INTRODUCTION

Due to a significantly higher construction bid price, and unforeseen construction site'
conditions resulting in subsequent increased re-design costs, construction delays, and
increased construction costs, the DeWeese-Dye Ditch and Reservoir Company (DDRC)
is requesting a $256,261 increase to their previously authorized loan.

BACKGROUND

A loan for the rehabilitation of the DeWeese Dam, located in Custer County north of
Westcliffe, was approved in 1998 through HB 98-1189 for a total loan amount of
$734,000. The loan to DDRC covered 90% of the estimated total project cost of
$839,000 at the agricultural interest rate of 4% over 30 years. The project consists of
replacing the upper portion of the dam with a new concrete overflow section that can
withstand overtopping by the design storm. Without completion of the project, the State
Engineer's Office was prepared to impose a storage restriction.

The DDRC bid the construction portion of the project and received three bids. The lowest
bid exceed the engineer's estimate by $203,000 (31 %). The Colorado Construction Cost
index increased 15% between the time the Feasibility Study was completed (1997) and
the project was bid (1999). In addition, the DeWeese Reservoir site is located in the
mountains and is difficult to access. Construction bids in 1999 have typically exceeded
the engineer's estimate for these types ofprojects.