ALP 15

AP9=02 -2004 FRI 04;06 PM CO R RES AUTHORITY FAX NO, 3038328205 N. U5
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spreadsheet exhibits currently estimated costs at the January 2003 level for components
outside of the plant at $756,906.
These estimates include the actual design costs as of January, 2003. The design costs are
distributed based on a ratio of the inside and outside costs. For the City of Durango to utilize
Durango Pumping Plant components both inside and outside the plant, the total specific costs
are currently estimated at $1,051,175.
We have also prepared the enclosed spreadsheet addressing specific cost eomponeats for
Ridges Basin Dam. Specific costs identified in the Authority's funding agreement are $2,000
at the October 2001 level and about $2,200 at the indexed January 2003 level. The current
estimate, as shown in the CCE for those components is $45,000. This represents 1/3 of the
costs for the piping and appurtenances on the dam's outlet specifically benefiting the two
Colorado Ute Tribes and the Authority (City of Durango).
In the referenced two spreadsheets Reclamation has not included specific costs for.
construction management or administration of the construction contracts. We do not feel that
these numbers can be reasonably separated from the overall construction management effort.
The estimates included in this letter include a factor for contingencies during construction.
The actual award amounts for these items of work are anticipated to be less than the estimated
amounts stated herein. The Final Cost Allocation will be based upon final construction costs.
Our construction contract for the pumping plant has been set up with separate bid schedules
for the specific items of work associated with delivery of water to. the City of Durango. This
was done to simplify the tracking of the appropriate specific costs.
The contract for the construction of Durango Pumping Plant, Stage 2 is currently being
negotiated and will be awarded in the near future, Components to allow the City of Durango
to utilize the pumping plant are included in the contract being negotiated. Physical
construction of the portions of the which include components to supply water to the City
of Durango are currently scheduled to start in August, 2004. However, staff time for the
preparation of submittal packages and the ordering of materials will occur well before the
physical start of construction. The components that will be installed in the initial stages of
construction are required to be embedded in concrete and cannot be reasonably deferred until
a later date.
As discussed above, expenditures, allocable as specific costs to the Authority, are currently
being incurred and will dramatically increase with impending construction contract awards. If
the Authority is considering not taking water from the Durango Pumping Plant, early
notification will help to limit the specific costs which may be allotted to the Authority.
In addition, we request the Authority indicate their agreement with the plan for the installation
of the components outside the plant to the CDOT right -of -way.