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<br />
<br />
<br />T he reconstruction of East D am 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 />unknow ns 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 f or 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 materi al costs have added approximately $400,000 to the project.
<br />
<br />A comparison of the total cost of the project with that originally estimated is summarized below in
<br />Table 1. Applegate Group, Color ado, completed the cost est imate for the project in December of
<br />2007 . The estimated total cost of the project at the t ime of loan approval was $2,650,000 .
<br />
<br />Table 1
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<br />
<br />Construct ion Items Original Est. Nov. 2008 Est.
<br />1 . Mobilization $ 150,000 $75,660
<br />2 . Rip Rap & Placement $876,490 $1,882,017
<br />3 . Bedding & Placement $ 542,870 $705,040
<br />4 . Excavation and Hauling $319,760 $394,250
<br />5. Backfill and Compaction $580,88 0 $257,040
<br />6. Sink Hole Repair $0 $4,000
<br />7. Access Road Repair $0 $18,100
<br />8. Parapet Wall Removal $0 $18,750
<br />9. Tree and Root Removal $80,000 $55,000
<br />10. Temporary Dam Embankment $0 $385,620
<br />11. Contingency $0 $567,450 (15%)
<br />12. Surveying/E ng./Testing/Inspection $100,000 (4%) $537,073 (14%)
<br />
<br />$ 2,650,000 $4,900,000
<br />Totals:
<br />
<br />
<br />The main cost overruns associated with the project w ere : the placement of temporary dam
<br />embankment material, removal of the concrete parapet wall and its reconfigurat ion, 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 budge ted an additiona l $567,450 in contingencies
<br />( 15 % of the revised construction costs ) to a ccount for the overall project co st overrun of $2,25 0,000.
<br />
<br />The District is requestin g an increase of $2, 045,250 to its cu rrent 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 />w ould be $ 4,454,100 , at the ir original interest rate of 2. 2 5 % for 3 0 years. The new annual payment
<br />will be $ 226,354 , which includes the 10% reserve requirement. The Company current loan of
<br />$ 2,408,850 has an annual pay ment of $126,598.
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