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• Board Meeting Date: 7/19/2009
• Description: CF Section - New Project Loans - Farmer's Reservoir and Irrigation Company - Milton Reservoir and Barr Lake Improvements Project
• Board Meetings - Doc Type: Memo

Farmers Reservoir and Irrigation Company Agenda Item 10
July 14, 2009
Page 4 of 8
Alternative No. 2 Replace the Upstream Outlet Gates Only:
– This alternative would
meet some of the Company ’s objective s by replacing the out dated upstream outlet gates
and allowing upstream operations of the reservoir. It would not include any repairs to the
aged steel - lined conduit section. Given the progression of degradation of the outlet pip e,
it is believed that these sections will continue to deteriorate. Failure of the outlet conduits
could result in failure of the dam, forcing the Company to drain the reservoir. The
estimated cost of this alternative was $630,000.

Alternative No. 3 Re pair the Outlet Conduits Only :
– This alternative would involve
replacing the steel - lined section of the outlet conduits while leaving the upstream outlet
gates in their current condition, so the Company would still not have reliable upstream
operators. Giv en this alternative , the Company would continue to control flows using the
downstream gates. As the upstream gates have reached their useful life , it is expected that
in the near future , the gates will fail , leaving the Company depend e nt solely on the
down stream gates for safety and operations. This could create a potentially unsafe
condition . Under emergency conditions, the Company could be forced to drain down the
reservoir and replace the upstream gates. The estimated cost of this alternative was
$128,0 00.

Alternative No. 4 (SELECTED) Replace the Upstream Outlet Gates and Repair the
–
Outlet Conduits :
This alternative consists of replacing the upstream outlet gates and
repairing the steel - lined section of the outlet conduits. This alternative would meet all of
the Company ’s objectives by replacing the out dated upstream outlet gates and allowing
upstream operations of the reservoir. It also addresses the problem with the aged steel -
lined conduit section and will enable the Company to operate flows through the system i n
a safe environment. The estimated cost of this alternative was $69 8 , 0 00.
The Company selected A lternative No. 4 because it best meets the objectives of
conti nued safe operations of the dam, allows all of the components of the work to be
co mpleted jointly , thereby saving money . During this portion of the Project, the reservoir
will be drained down to facilitate the construction of the gates and the r eplacement of the
44 - inch steel - lined section of outlet conduit. The Company will remove the existing gates
and operators, install t wo new slide gates , install n ew hydraulic operators alo ng the
upstream face of the dam, install a new gate control house , run p ower and a SCADA
system to the gate house , and configure the system to facilitate both lo cal operations at
Milton Reservoir and remote operations from the Company ’s office in Brighton.

The schedule for this portion of the Project is: State Engineer’s Office ( SEO ) review
during July/August 2009, bid the Project in September 2009, start const ruction by the end
of September 2009, and complete construction by the end of December 2009. The cost
estimate is as follows: