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<br />Farnsworth Construction commenced construction during the fall of2005, at which time extensive
<br />cost overruns were encountered due to heavy rains, access limitations, mudslides, and dewatering
<br />requirements. Prior to suspending work for the winter, the contractor had only managed to stabilize
<br />and protect the existing PVC liner on the dam face. Given the location, elevation, and summertime
<br />irrigation use of the reservoir, the contractor commenced construction again in the fall of2006.
<br />Once again the contractor experienced extensive cost overruns due to heavy rains, that created
<br />access limitations, muck removal, and most importantly the inability to manage incoming runoff
<br />into the reservoir. Therefore, upon suspension of work for the winter, the contractor had only
<br />managed to repair erosion to the dam embankment and partial completion of the inlet structure.
<br />
<br />In September 2006, the Company requested an additional $25,250 from CWCB to cover a portion
<br />of these additional cost overruns. At that time, the Company's total cost of the project was
<br />approximately $172,000, which included the placement of additional material over the existing
<br />PVC liner, regrading ofthe dam face, and partial completion ofthe inlet structure. The items
<br />remaining to complete the project, included the placement of the gate stem and gate, concrete gate
<br />stem supports and gauges, trash rack, final contouring, dewatering, and seeding. The Company
<br />elected to release Farnsworth Construction in January 2007 and retained the services ofKC
<br />Construction from Paonia, Colorado to complete the remaining items, on a time and material basis.
<br />
<br />In May 2007, KC Construction commenced construction and also encountered extensive
<br />complications in controlling runoff entering the reservoir that prohibited the contractor from
<br />completing the outlet structure and final grading along the dam embankment. It was determined at
<br />that time, given the volume of runoff entering the reservoir and the 70-foot dam height to overcome,
<br />that a % mile bypass ditch needed to be constructed from the reservoir inlet to the spillway. KC
<br />Construction completed the bypass ditch and the remaining construction as discussed in November
<br />2007 that was inspected and approved by the State Engineer's Office.
<br />
<br />A comparison of the total cost of the project with that originally estimated is summarized below in
<br />Table 1. Golder Associates, Lakewood, Colorado, completed the cost estimate for the project in
<br />July 2004. The estimated total cost of the project at the time of construction was $142,800, that
<br />increased to $171,845 in September 2006 and to a final project cost of $560,369 in October 2007.
<br />
<br /> Table 1
<br /> Items Orh~. Est. Sent. 06 Nov. 07 Final Cost
<br /> Construction Items Farnsworth KC Const. Combined
<br />1. Mobilization $4,700 1 1 1
<br />2. Site and Foundation Preparation $2,655
<br />3. Fill Construction $8,000
<br />4. Outlet Works $57,725 $144,228 $202,290 $346,518
<br />5. Bypass Ditch $0 $0 $100,000 $100,000
<br /> Subtotal: $73,080 $144,228 $302,290 $446,518
<br /> PlanninJ! and DesiJ!n
<br />6. Surveying/Eng.lT estinglInspection $53,720 $27.617 $86.234 $113,851
<br /> Total: $142,800 $171,845 $388,524 $560,369
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