PROJ00146

• Contract/PO #: C150011
• Contractor Name: Consolidated Mutual Water Company, The
• Contract Type: Loan
• Water District: 7
• County: Jefferson
• Bill Number: SB 99-173
• Loan Projects - Doc Type: Feasibility Study

DISCUSSION

The feasibility study for the project was completed by BBC Research and Consulting of
Denver, Colorado, in January of 2000. The total project cost was revised at that time, utilizing
design and construction numbers provided by the design consultant, Tuttle Applegate, Inc.

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

Land and Reservoir Site
Water Rights Decree
Proj ect Management
Engineering
Pipeline
Const. Inspection, Surveying, Testing
Reservoir and Spillway Const.
Total:

= $3,285,000
= $10,000
= $100,000
= $300,000
= $3,000,000
$1,369,350
= $13.693.502
$21,757,852

The project was bid for construction in late 1999, and was awarded in January of 2000 to
R.E. Monks-ConstructionCompanTatth~ir-bid price-of$t4~690,120. Items'outside the scop~'of
Monk's contract to be performed by Consolidated Mutual Water Company were the installation of
24"-30" watermain from Fortune Reservoir to Fairmount Reservoir, approximately 5-miles in
length, the purchase of the 30" watermain and appurtenances, the coordination and construction of
various roadway improvements along Indiana and State Highway 72, and additional pipeline work
and utility relocations.

The Contractor mobilized on-site in April of 2000 and is currently 60% complete with the
project. Consolidated Mutual Water Company has completed the installation of the 24"-30"
watermain from Fortune Reservoir to Fairmount Reservoir, and has completed the various roadway
improvements along Indiana and State Highway 72. During construction of these various items,
the Contractor and Consolidated Mutual have encountered cost overruns. These additional costs
can be summarzied as follows; cost overruns due to unforeseen changes encountered in the field
during construction, design changes incorporated into the project at the time of construction, and
additional work that was not included in the original project cost estimate.

The following is a brief summary of the additional costs that have occurred on the project:

R.E. Monks - Additional Costs due to Unforeseen Site Conditions.

Downstream Toe and Kevwav Excavations:
During the excavation of the downstream toe and keyway, the geotechnical consultant
observed unacceptable bedrock in a number of areas and therefore directed the Contractor to
over excavate these areas until a suitable bedrock layer was encountered.

Additional Cost = $45,000.

Foundation Grouting:
Upon grouting the dam's foundation, a zone of fractured bedrock was encountered beneath
the north abutment, which was filled with additional grout to ensure a water tight
foundation.