25d

• Board Meeting Date: 11/19/2008
• Description: CF Section - Changes to Existing Loans - Silt Water Conservancy Dist. - Rehabilitation of System Infrastructure
• Board Meetings - Doc Type: Memo

Background

The District was formed i n June e State of
Colorado. The District delivers 18,000 acre - feet annually to a 6,600 acre service area, located in
and aro und the T - foot storage
right in Rifle Gap Reservoir. Additionally, the District has a 36 cfs water right out of the
Colorado River, under which it pump s approximately 4,000 acre - feet annua lly , an d a 100 cfs
direct flow right in th e Grass Valley Canal, which is store d in Harvey Gap Reservoir with a
capacity of 5,805 acre - feet.

To - date , the District has completed the maintenance and repair work at Rifle Gap Reservoir and
has completed the mo nitoring and design report for the seepage at Harvey Gap Reservoir, at a
total cost of approximately $93,500. Future work at Harvey Gap Reservoir may be required to

Discussion

Due to the increased cost to replace the Grass Valley Siphon and other cost adjustments to the
rehabilitation project has increased to $1,670,000.

The replacem ent of the Grass Valley Siphon is the main reason for the proposed loan increase.
The original feasibility report estimated $500,000 to design and replace the siphon with
approximately 1,200 feet of 42 - inch diameter steel pipe. When the original estimat e was
developed , it assumed that the Bureau of Reclamation would assist in the design of the
replacement siphon , because of their involvement in the original design . After several years , it
became apparent to the District that any assistance from the Bur eau would be limited and
untimely . Therefore, given the condition of the existing siphon and its critical importance to the
health of the overall system, the District hired the services of Schmueser, Gordon, Meyer
Eng ineers and Surveyors in Apri l 2008 to design a replacement siphon for construction in the
fall/winter of 2008/09.

The project has been designed and bids were received in August 2008. The District is currently
work ing with the low bidder, High Country Pipeline, Pen rose, Colorado, at a bi d of $930 ,000.
The bid was for replacing the siphon with 1,185 feet of 54 - inch diameter steel pipe below grade.

A comparison of the total cost of the project with that originally estimated is summarized below in
Table 1. The District completed the cost est i mate for the original project in June 200 3 .

Table 1

Construction Items Original Est. - 2003 Nov. 2008 Est.
1. Grass Valley Siphon Replacement $500,000 $930 ,000

2. Seepage Control Harvey Gap $183,200 $377 ,500

3. Rifle Gap Stilling Ba sin $62,000 $62,500

4. Motor & Pump Replacement $387,910 $0

5. Design/Insp. Siphon (15%) $0 $150,000

6. Contingency - Siphon (15%) $0 $150,000
$1,133,110 $1,670,000
Totals:
2