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<br />Xcel Gas Pipeline Relocation:
<br />An existing 12-inch high pressure gas main currently exists along the west side of the
<br />reservoir within Fortune Reservoir's pooling area. The gas main is currently owned and
<br />operated by Xce1 Energy. Given discussions with the Gas Company, and the age,
<br />condition, and existing location of the pipeline, it is anticipated that this gas main will need
<br />to be relocated outside the pooling area of the reservoir.
<br />
<br />Added Cost = $367,000
<br />
<br />Total cost overruns to-date by Consolidated Mutual Water Company, and for projected
<br />future improvements not included in the original project scope is $2,800,000.
<br />
<br />The following is a summary of all additional cost incurred by Consolidated Mutual Water
<br />Company and their Contractor:
<br />
<br />Original Cost
<br />Estimate
<br />
<br />Actual Cost
<br />Incurred
<br />
<br />Variance
<br />
<br />Consolidated Mutual
<br />.* Lana and Resetvo1tSlte
<br />* Water Rights Decree
<br />* Project Management
<br />* Engineering
<br />* Inspect., Surveying, Testing
<br />* Pipeline
<br />* Roadway Work
<br />* Construction Water
<br />* Materials Supplied
<br />* Gas Main Relocation
<br />Totals
<br />Contractor (R.E. Monk)
<br />* Reservoir and Spillway
<br />
<br />Totals:
<br />
<br />$3,285;000
<br />$10,000
<br />$100,000
<br />$300,000
<br />$1,369,350
<br />$3,000,000
<br />$0
<br />$0
<br />$0
<br />$0
<br />$8.064.350
<br />
<br />$13,693,502
<br />
<br />$21,757,852
<br />
<br />$3,285,000
<br />$10,000
<br />$100,000
<br />$370,000
<br />$1,299,350
<br />$4,500,000
<br />$597,000
<br />$150,000
<br />$186,000
<br />$367.000
<br />$10,864,350
<br />
<br />$16,670,810
<br />
<br />$27,535,160
<br />
<br />$0
<br />$0
<br />$0
<br />$70,000
<br />($70,000)
<br />$1,500,000
<br />$597,000
<br />$150,000
<br />$186,000
<br />$367.000
<br />$2.800.000
<br />
<br />$2,977,308
<br />
<br />$5,777,308
<br />
<br />Based on the additional costs as illustrated above, the Consolidated Mutual Water Company
<br />is requesting 75% ofthe total additional project cost incurred to-date and those projected to occur in
<br />the near future, for a increased loan amount of$4,333,000.
<br />
<br />Paragraph (2) of Section 1 of HE 00-1419 allows that loans made by the Colorado Water
<br />Conservation Board may be increased or decreased as may be justified by "reasons of ordinary
<br />fluctuations in construction costs as indicated by the engineering cost indices applicable to the types
<br />of construction required for each project or as may be justified by reason of changes in the plans for
<br />a project due to differing or unforeseen site conditions, errors, or omissions in the plans and
<br />specifications, changes instituted by regulatory agencies, or changes in material quantities beyond
<br />contract limits ". Unforeseen site conditions, design modifications, and additional work not
<br />programmed in the original cost estimate of the project, has required work that increases the total
<br />estimated cost of the project and therefore justifies Consolidated Mutual Water Company's
<br />requested $4,333,000 increased loan request.
<br />
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