|
<br />! Nov-OZ-Z004 OZ:56pm
<br />
<br />From-
<br />
<br />HI9 P. 00Z/003 F-338
<br />
<br />I
<br />
<br />~ ,
<br />,
<br />
<br />. November 2, 2004
<br />
<br />Tim Feehan
<br />Design and ConstIUcnon Manager
<br />Colorado Water Conservation Board
<br />1580 Logan Street, Room 750
<br />Denver, CO 80203
<br />
<br />Subject: Pine River Bayfield Ditch Company (pRBDC) - Beaver Creek Siphon
<br />Replacement
<br />
<br />Dear Tim,
<br />
<br />.
<br />
<br />This letter is a follow-up response to our telephone conversation on Monday, October 25,
<br />2004. AsI explained, we had our on-site pre-bid meeting with four constrUction entities
<br />that expressed an interest in bidding on the Beaver Creek Siphon Replacement (project).
<br />These entities are: Gosney and Sons Inc., Diamondback Excavation, Tucker R
<br />ConstrUction, and Five Star Contracting. Several members of the Board, administration
<br />and Construction Oversight Committee (COC) were also present. We emphasized that
<br />each bid should be predicated on a "turn-key" construction effort, with no add-ons,
<br />change orders; or bid modifications to complete the project, The PRBDC Board (Board)
<br />and cac met on October 18,2004, to open the bids. Only one entity submitted a bid -
<br />Gosney and Son, Inc. Their bid was $J 80,610.00.
<br />
<br />Regarding your request for an explanation of needed additional funds, 1 offer the
<br />following: On May 20, 2003, the Board secured a construction loan through the
<br />Colorado Water Conservation Board (CWCB) for $202,000.00 to complete the Project.
<br />TIlis value includes a one percent loan origination fee and a contingency factor to cover
<br />incidental and unforeseen cost associated with the Project. The $202,000.00 loan amount
<br />was predicated on a February 12, 2002, Project construction cost estimate of $172,000.00
<br />from Natural Resources Conservation Service (NRCS) in Durango, Colorado. The
<br />replacement COst estimate provided by NRCS was approximately 47 percent short of the
<br />bid we received from Gosney and Sons Inc. (i.e., $252,000.00 (October 2004, cost to
<br />replace the siphon as computed below) - $172,000.00 (NRCS cost estimate) I
<br />$172,000.00 X 100 = 47%). The contingency factor used in developing the $202,000.00
<br />loan amount, coupled with the dated NRCS constrUction cost estimate, were not
<br />sufficient to cover the actUal costs the Board and COC now face to replace the siphon,
<br />
<br />To date, we have spent $65,955.00 for siphon pipe. This leaves an available balance of
<br />approximately $136,045,00 to complete the Project. With Gosney and Sons Inc, bid of
<br />$180,610.00 we have a deficit of$44,565.00. In addition, (in round numbers) we are
<br />adding $5,435.00 for the oversight services of a professional engineer as required by
<br />. eWCB, (Unfonunately, the NRCS is unable to assist us with a professional engineer to
<br />
<br />1
<br />
|