BOARD01437

• Board Meeting Date: 11/19/2003
• Description: CF Section - Changes to Existing Loans - Lake Meredith Reservoir Company - Lake Meredith Outlet Channel Reconstruction
• Board Meetings - Doc Type: Memo

In February of 2003 the Reservoir Company provided a feasibility report to the Colorado Water
Conservation Board, prepared by Steffens and Associates, Evergreen, Colorado to construct a new outlet
channel that would mitigate future sediment problems and allow the Reservoir Company to access the
17,000 acre-foot dead pool.

Below is a brief summary of the major project elements and their estimated cost as presented in the
original feasibility study:

Excavate Main Channel
(923,500 c.y.@$0.85/c.y.)
Construct New Outlet Structure
Construct Bob Creek Stormwater Inlet ~
Engineering and Permits
Loan Origination Fee
Sub-total:
Contingency
Construction Total:

$785,000

$400,000
$100,000
$82,000
$10,000
$1,377,000
$147,800
$1,524,800

Pate Construction, Pueblo, Colorado and the Colorado Canal Company, Ordway, Colorado is
constructing the chat111el cooperatively on a time atld material basis. Bids have been received for work on
the outlet structure. Excavation of the chat111el commenced in winter/spring of 2003 atld is scheduled for
completion in spring of2004.

During construction of the project the Reservoir Company encowltered added cost during Chat111el
excavation, higher then anticipated cost in constructing the outlet structure, and new costs associated with
added construction items that were not in the original feasibility report.

Channel Excavation:

The original cost estimate for Chat111el excavation was based on $0.85 per cubic yard. The engineer
obtained the cost per cubic yard based on a detailed cost evaluation that included equipment comparisons,
performatlCe expectations of the equipment, labor arrangements atld field verification.

During construction, however, wetter then expected clay soils proved difficult to hatldle. The
cohesive property of the soil created build-up in the excavator bucket atld the bearing capacity of the soil
would not support the D9 Dozer with its standard track width. In an attempt to increase productivity in the
field the Company investigated four different equipment arratlgements. The selected equipment
arrangement that worked well with the soil conditions present required additional equipment and more
labor. The total equipment cost increased from $243/hour to $343/hour and required three more operators.
With the new equipment in place the cost per cubic yard, however, was lowered from $2.00 to $1.50. The
overall project cost per cubic yard varied from $0.94 to $2.69 with a [mal project cost of approximately
$1.35 per cubic yard.

Added Cost: $460,645

New Construction Items:

Flood Protection. Water Project Planning i!nd Financing. Stream and Lake Protection
Water Supply Protection. Conservation Planning