BOARD01438

• Board Meeting Date: 1/26/2000
• Description: CF Section - Changes in Existing Loans - Skyrocket Creek Deflection Structure Rehabilitation
• Board Meetings - Doc Type: Memo

determined that the existing structure is at risk of failure during a major flood event and
poses a flood threat to the community. The feasibility report was prepared by the Corps
of Engineers, Sacramento District in 1997. By copy of the Corps' Geological and
Geotechnical Investigation, dated October 22, 1999, the City was advised of the proposed
project design. The Corps now recommends a reinforced concrete structure rather than a
stone masonry structure.

Based on the new design and increased construction costs, the revised project cost
estimate is as follows:

Estimated Project Cost

Original
$133,450

Revised
$160,000

The City of Ouray has requested an increase to its loan in the amount of $30,000
for a total loan amount of$55,000, or 35% of the new total project cost

DISCUSSION

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This project required a re-design from the original feasibility proposal due to
unforeseen requirements associated with an environmental assessment and archaeological
investigation report. The revised design ha.~ solved the associated construction problems;
however, it resulted in an increased project cost. e

Paragraph (2), Section I of SB 97-008 provides that loans made by the Colorado
Water Conservation Board may be increased or decreased as may be justified by "reason
of ordinary fluctuations in construction costs as indicated by engineering cost indices
applicable to the types of construction required for each project or as may be justified by
reasons of changes in the plans for a project due to differing or unforeseen site
conditions, ....., changes instituted by regulatory agencies or changes in material
quantities", The unforeseen changes identified above and the Corps of Engineers
requirements have required work that increases the total estimated cost of the project and
therefore justifies the City's loan increase request

The total amount requested from the CWCB would be $55,000 or up to 35% of
the actual project costs, whichever is less. The Corps of Engineers would pay for the
remaining $105,000 of costs from Corps' flood control program funds,

Since the loan approval in 1999, the City Council has posed a ballot question to
the voters in Ouray requesting a dedicated property tax for surfacing and drainage repairs
and improvements. The ballet question was approved by a 2 to 1 margin in the
November 1999 election. This additional source oflocal revenue strengthens the City's
overall financial condition.

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