PROJ00434

• Contract/PO #: C153337
• Contractor Name: Farmers Extension Ditch & Highland Lake Lateral Company
• Contract Type: Loan
• Water District: 1
• County: Weld
• Bill Number: FSA
• Loan Projects - Doc Type: Feasibility Study

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Assuming that a half (~) mile could be completed in one day, we get the following
figures:

1- Bentonite or sealant $15,100
2. Equipment 13,200
3. Labor 5,300
4. Inspection 4,400
Subtotal 38,000 per year

Clearing vegetation, scarifying
Other maintenance costs 30,000

Total $68,000 per year

When we evaluate these costs against an estimated maintenance cost of $20,000

a year or less for a piped or concrete lined ditch, we find that there is a sub-

stantial savings. The complete cost of the maintenance would have to be born

by the stockholders in that none of the rehabilitation funds to be given by ASCS

or CWCB may be used as an investment towards future maintenance costs. The stock-

holders would express extreme displeasure in paying for these costs.

The initial estimated construction cost for Alternative No. 1 is $1,500,000 ex-

cluding contract administration and legal fees to rehabilitate this ditch using

a sealant. This cost is broken down as follows:

Importing Fill $ 550,000

Reshaping the Ditch 300,000

Adding Sealant 175,000

Compaction 175,000

Rebuild Structures 300,000

Total $1,500,000

We estimate that contract administration and legal fees will be about three percent

(3%) of the total cost, in this case $45,000 for a total cost of $1,545,000. If

the Colorado Water Conservation Board loans half of these funds, or $772,500, then

the highest repayment that the ditch boards would have to raise to repay the loan

would be $33,000. This cost plus the $68,000 per year 0 & M costs would result

in a $101,000 per year actual debt. This is higher than the $72,000 per year

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