ALP 14

APR =02 -2004 FRI 04 :07 PM
WCD- DGjere
WTR -4.00
CO #TER RES AUTHORITY FAX NO. 3038328205
Uld States Department of Zetterior
3764 Conpen Drivk Suite 106
Greed hattion CO 0150641755
aURM or RECLAW"Ic i
Upper Colorado Region
Western Colorado Area Offee
MAR 20 2M
Mr. Daniel L. Law, Executive DirecW
Colorado Water Resources and Power Development Authority
1580 Logan Street, Suite 620
Denver CO 80203 -1943
P. 09
SM E Zed AV=IM Soft 300
Dump CO ILIO34M
Subject: Specific Costs for Durango Pumping Plant, Amended and Restated Escrow Agreement
with the Colorado Water Resources and Power Development Authority, Animas -La
Plata Prc jeep Colorado and New Mexico
Dear W. Law:
Asa follow up to our January 29, 2003 discussion and our January 23, 2003 letter to the City of
.Durango's Mr. Otha Rogers, we have researched information relating to specific costs. identified
in the November 9, 2001, Amended and Restated Escrow Agreement (Agreement) with the
Colorado Water Resources and Power Development Authority (Authority). Now that designs
and construction specifications are. complete, we are able to compare current cost estimates with
those included in the Authority's Agreement with Reclamation. Because there are differences in
the currently estimated and contracted specific costs, we are seeking input from the Authority on
how to proceed in this matter.
.The specific costs identified in the funding agreement that are allocable to the Authority are
$5,82,400, with 5580,400 assigned to the Durango Pumping Plant. This amount wall. derived by
indexing specific costs identified in the Final Supplemental Fsnvimnmental Impact Statement
(FSEIS). These specific costs associated with the Durango Pumping Plant would allow the City
of Durango to utilize project pumps to pump project water directly to the-City's terminal
reservoir. The $580,400 represented costs for facilities primarily within the walls of the plant
that should be constructed or installed at the time of plant construction. It was expected that the
City would provide any additional components outside of the plant necessary for them to connect
the plant to their raw water line. During the final design stage of the Durango Pumping.Plaat, it
was determined that the necessary components outside the plant should also be included in the
pumping plant specifications due to the need to be compatible with the plant components. This
would also provide for more efficient construction of those components outside -of the plant.
The attached spreadsheet exhibits the results of our research and our updated specific cost
estimates for components of the Durango Pumping Plant servicing the City of Durango. We
A_Cetmlry of water for the writ
1902 -2002