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The reconstruction of East Dam is currently on a time and materials contract with Builders <br />Aggregate, from Fort Morgan, Colorado, and Chilson Excavating, from Weldona, Colorado. <br />The District elected to go with a time and materials contract given the urgency and the extent of <br />unknowns associated with the time and material necessary to place the temporary dam <br />embankment. The two companies, given their availability and location, were selected by the <br />District to perform the temporary fill placement and based on their performance were also <br />selected to perform the remaining dam work. The companies provided hourly equipment rates <br />in December of 2007 for the temporary dam work that have increased by approximately 20%, <br />due to increase fuel and labor costs. Additionally the costs of rip rap and bedding material have <br />increased significantly since the original estimate. These fluctuations in equipment, labor, fuel, <br />and material costs have added approximately $400,000 to the project. <br />A comparison of the total cost of the project with that originally estimated is summarized below in <br />Table 1. Applegate Group, Colorado, completed the cost estimate for the project in December of <br />2007. The estimated total cost of the project at the time of loan approval was $2,650,000. <br />Table 1 <br />The main cost overruns associated with the project were: the placement of temporary dam <br />embankment material, removal of the concrete parapet wall and its reconfiguration, increased <br />material and fuel costs, and increased engineering and construction inspection costs. These items <br />cost the District approximately $1,683,000 in additional funds to complete the project as <br />reconfigured. Additionally, the engineer has budgeted an additional $567,450 in contingencies <br />(15% of the revised construction costs) to account for the overall project cost overrun of $2,250,000. <br />The District is requesting an increase of $2,045,250 to its current loan authorization $2,408,850, to <br />cover 90% of the total cost of the project. The new total amended loan amount for the District <br />would be $4,454,100, at their original interest rate of 2.25 % for 30 years. The new annual payment <br />will be $226,354, which includes the 10% reserve requirement. The Company's current loan of <br />$2,408,850 has an annual payment of $126,598. <br />c <br />