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<br />'\ <br /> <br />\ <br /> <br />The existing 2,300 foot, 32-inch diameter metal siphon was constructed between 1955 and 1957, <br />with a design life of 30-years. The current siphon is now 50-years old and is showing signs of severe . <br />deterioration. The steel has oxidized to a point where the pipe walls have thinned in many places beyond <br />repair, Also, significant quantities of iron oxide scalings have accumulated at the siphon outlet. With <br />evidence of further degeneration, the siphon is now subject to imminent failure, which would render the <br />ditch inoperable. <br /> <br />In the fall of 2003 the Company completed a feasibility study, in accordance with the Colorado <br />Water Conservation Board guidelines, to replace the existing 32-inch steel pipe with a new 30-inch PVC <br />pipe. Replacement of the pipe involved trench excavation and backfill, pipe purchase and placement, and <br />the construction of new concrete inlet and outlet structures. <br /> <br />Table 1 below is a brief summary of the major project elements and their estimated cost as <br />presented in the original feasibility study: <br /> <br />Table 1. Project Cost Summary <br /> <br />Item Estimated Cost <br />1. PVC Pipe (2,300 l.f., 30-inch, 80#) $66,700 <br />2. Installation $23,000 <br />3. Excavation & Dewatering $18,044 <br />4. Concrete Structures $30,000 <br />5. Bedding Material & Dewatering $35,160 <br />6. Contingency $44,096 <br />Subtotal: $217,000 <br />8. Engineering $50,000 <br />Total: $267,000 <br /> <br />. <br /> <br />Since the Board's approval of these improvements in May of2003, the Company has gone <br />through a formal bid process to construct the project. The Company is currently reviewing the bid of <br />Gosney and Sons, Inc., Bayfield, Colorado in the amount of$180,610, for future award and <br />construction. The Company purchased the 30-inch siphon pipe in May of2003, at a cost of$65,955. <br /> <br />DISCUSSIONS <br /> <br />Table 2 below is a comparison of the current project costs, versus the costs presented in the original <br />feasibility study: <br /> <br />Table 2 - Cost Comparison <br /> <br />Item Oril!inal Cost Estimate Actual Proiect Cost Cost Difference <br />1. PVC Pipe, 2300 l.f. $66,700 $65,955 ($745) <br />2. Excavation, Installation, $150,300 $180,610 $30,310 <br />Concrete Structures, and <br />Bedding Material <br />3. Design Engineering $50,000 $50,000 $0 <br />4. InspectionlTesting $0 $10,000 10,000 <br />Totals: $267,000 $306,565 $39,565 <br /> <br />. <br /> <br />2 <br />Flood Protection. Water Project Planning and Financing. Stream and Lake Protection <br />Water Supply Protection. Conservation Planning <br />