Board Meeting 03/03/1983

• Board Meeting Date: 3/3/1983
• Description: Minutes, Agenda, Memorandums March 3, 1983
• Board Meetings - Doc Type: Meeting

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effects of inflation. Based on the Bureau' s normal cost
allocation procedures and the current cost indexed to completion,
the municipal and industrial water allocation is estimated to be
as much as double the ceiling in the repayment contract.
About a year ago, when it became evident that the cost
ceiling would be exceeded , the Bureau of Reclamation advised the
District of this fact. The Bureau estimated that the award of
the contract for the Great Cut Dike pumping plant would bring
allocated costs over $20,000,000 and therefore took the position
that the contract could not be awarded until the problem was
resolved.
Discussions have been under way since then among the
District, Bureau, and , at the District's request, me . A
favorable change in cost allocation procedures has been agreed to
by the Bureau, which change can be effected only if the
construction and financing of two single purpose M&I features of
the project--the pipeline from McPhee Reservoir to Cortez and the
small terminal storage reservoir at Dove Creek--are taken over by
the District. The District has indicated its willingness to
assume this obligation, subject to the availability of financing
from the CWCB construction fund (see enclosed resolution) .
I am advised that the Commissioner of Reclamation is
desirous of having the Board act and forward its recommendation
to the General Assembly during this session in light of the
scheduled award date for the Great Cut Dike pumping plant
contract . This would resolve the problem to the Commissioner's
satisfaction and permit construction to proceed on schedule and
within the $20,000,000 ceiling in the repayment contract.
Proposed Facilities
'" It has not been necessary to prepare an independent
feasibility study of the two features under consideration.
�,] Rather, we have utilized the preliminary plans already developed
aTa{ °:«! by the Bureau.
1 ` The pipeline to Cortez presents no significant technical
questions . It should be, based upon the Bureau data, a straight-
forward construction project. The cost is estimated at
$2,525,000a- (see enclosed table) .
166 ,o0Q
The terminal storage reservoir at Dove Creek, known as the
Monument Creek Reservoir, is presently planned by the Bureau with
a capacity of about 600 acre-feet. It would provide neither fish
and wildlife nor recreation benefits.
During the District's deliberations concerning this problem,
interests from the Dove Creek area asked that consideration be
given to relocating and enlarging Monument Creek Reservoir.
MEMORANDUM -2- - 3/1/83