CT2016-1987 Approval Letter

• Contract/PO #: CT2016-1987
• Contractor Name: Fort Lyon Canal Company
• Contract Type: Grant/Loan Combo
• Loan Projects - Doc Type: Approval Letter

Fort Lyon Canal Company Agenda Item 23a
September 15-17,2015 Board Meeting(Updated September 18, 2015)
Page 4 of 7
This alternative could be completed during the planned November 15th to March 15th canal
shutdown, but it has the longest construction schedule and the greatest chance of delays due to
weather and other factors. The cost for this alternative is estimated at $2,015,000
The Company and its engineers decided alternative 3 would provide the best combination of cost,
constructability, and long-term reliability. Costs for this alternative are shown in the following table.
TABLE 2: ESTIMATED PROJECT COST
Task Cost
Design and Permitting $403,000
Construction $1,785,000
TOTAL COST $2,188,000
TABLE 3: PROJECT FUNDING SUMMARY
Percent of total Funding
project costs
CWCB Construction Fund Loan 74% $1,613,000
CWCB Water Supply Reserve Grant - Basin Account 2% $50,000
CWCB Water Supply Reserve Grant - Statewide Account 21% $450,000
Company Cash Match 3% $75,000
TOTAL 100% $2,188,000
CWCB Grant funds will be disbursed at a cumulative maximum 23% of the total of all invoices submitted
for reimbursement.
The Company has already ordered the large diameter steel pipe, which has a long manufacturing and
delivery time, in order to meet their construction schedule. Invoicing related to the steel pipe will be
eligible for reimbursement from loan funds, but not until the project's selected construction
contractor is under contract and formally accepts and takes control and liability for the steel pipe and
any additional related items ordered prior to construction notice-to-proceed.
Permitting: The work will be completed outside of the banks of Horse Creek with no dredge or fill
material within Horse Creek itself, so no 404 permitting is anticipated. The contractor will be required
to secure Fugitive Particulate Air Pollution Emission Notice/Control Plan, and a required Stormwater
Discharges Associated with Construction Activity Permit from the Colorado Department of Health and
Environment.
Schedule: The Company plans to complete the construction during the November 15, 2015 to March 15,
2016 canal shutdown period. It is expected to take three to four months to fabricate and deliver the
steel pipe. At the Company's April 23, 2015 Board of Directors meeting the engineers were authorized
to begin final design work on pipe procurement and construction documents for the project.