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approximately 10% since 1991 ($43,800). Land prices are considerably higher, thus more was set aside for the right-of-way ($27,000 vs. $10,000). Also, since that time, we have had a better chance to investigate the area. There appears to be a lot more rock removal required than initially estimated and we added $18,000 for that number. We also increased the cost of pipe installation by $2.00/LF, or $48,000 extra. 3. Our initial estimate in 1991 estimated only $7,200 for the intake at Gurley Reservoir. This would have consisted of a small dam below the outlet. It had been assumed that it would be possible to crack open the Gurley gate to release a small amount of water. (This had been suggested as a feasible alternative in 1991.) Obviously things have changed considerably now. The new estimated cost of the intake is $102,000. 4. We have not included any deduct for revenue from the hydroelectric system. It still may be feasible; however, a more in-depth analysis is needed and due to the short time required for preparation of the 1994 report, we took a more conservative approach on this option since it was too uncertain. We believe the costs generated in the 1994 report are fairly accurate. It is probable that the cost for the pipeline in the 1991 report were underestimated due in part to a lack of knowledge of conditions. As you are aware, that was a very comprehensive report which covered all components of the system, on a limited budget, and did not allow in-depth investigation of all alternatives. Our experience recently with bids on the water plant and the distribution system indicate that the bidding climate has changed considerably in the last couple years, with less competition among bidders due to the growth in Western Colorado (we only received two bids on the water plant installation). The 10-million-gallon reservoir. was estimated at $328,500 in 1991. Again, that did not include 20% engineering. Also an inflation factor should be added to this, plus allowance should be made for present bidding climate. The 1991 cost estimate was based on three general sites with no information on subsurface conditions. It is estimated that the 10- million-gallon reservoir built alone could be close to $380,000 new. With a 20% engineering add-on, total costs could be as high as $460,000. The cost of the 30-million-gallon reservoir is not necessarily three times the cost of the 10_million-gallon reservoir since there are certain items such as land acquisition, piping, head gate, access road, etc. which are the same for both. We hope this provides sufficient information to answer the question asked at the C\VCB meeting. The most important question is where to go from here. The Town has a $320,000 loan approved for a lo-million-gallon reservoir and a tentative approval for a 30- million-gallon reservoir approval. Additional money will be needed for the 10-million-gallon reservoir if you take that route (over the $320,000 now set aside). Part of this cou.ld come from the Town's contribution since CWCB normally funds only 75% of the total value. Also, the Town may be able to use part of the supplemental funding from the 10 MG -- reservoir to make up the difference. 3