ALP 15

APR - 02-2004 FRI 04;06 PM 00 TER RE
AUTHORITY FAX N0. 3038328205 F. 03
United States Department of the Interior �•�
BUREAU OF RECLAMATION TAM PRtCW
ANIMAS -LA PLATA CONSTRUCTION OFFICE 'NAMERICA
P.O. BOX 5107
W RMY F ER TD: 103 Everett Swet
Durango, CO 81301
ALP -252
WTR -4.00 10 RECEIVED
MAR 1 3 2004
Cobrad
Mr. Daniel L. Law o Water �
Pcwsr Devekp=d Adh&*
Executive Director
Colorado Water Resources and
Power Development Authority
1580 Logan Street, Suite 620
Denver, CO, 80203 -1943
Subject: Specific Costs for Durango Pumping Plant and Ridges Basin Dam, Funding
Agreement and Repayment Contract Between the United States and the Colorado
Water Resources and Power Development Authority, Contract No. 02- WC-40-
8000, Animas -La Plata Project, Colorado and New Mexico
Dear Mr. Law:
Please reference your December 23, 2003 letter regarding City of Durango specific costs
associated with the Animas -La Plata Project. The purpose of this letter is to provide you:
1) Notice of the current cost estimates for specific cost components including updated
information concerning these costs, and
2) Notice that expenditures, allocable as specific costs to the Colorado Water Resources and
Power Development Authority (Authority); are currently being incurred and will
dramatically increase with impending construction contract awards.
Based on the discussion between yourself and Barry Longwell of my staff on February 27,
2004, it is our understanding that your letter of December 23 is not a notice of request for
consultation as defined in the subject repayment contract. We have treated your letter as a
request for an update on specific costs allocable to the Authority. If this understanding is
incorrect, please let us know.
We have updated and supplemented the information provided by our March 20, 2003 letter
and its enclosure for Durango Pumping Plant. The information contained in the March 20
letter (enclosed) is still very pertinent; we have not duplicated it here. The enclosed two
spreadsheets identify the results of our updated specific cost estimates for components of
Durango Pumping Plant and Ridges Basin Dam. The cost information used in the
spreadsheets is compatible with the recently updated Construction Cost Estimate (CCE) at