C153699 Contract

• Contract/PO #: C153699
• Contractor Name: Colorado River Water Conservation District
• Contract Type: Grant
• Water District: 0
• County: Delta
• Bill Number: XB 99-999
• Loan Projects - Doc Type: Contract Documents

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The process of funding the Mitigation Grant is sepalate from the approval of the "official
state position" and requires consideration of a "grant application" by the CRWCD. The grant
application identifies certain eligible construction costs which ale used in calculating the financial
obligations of both the CRWCD and the CWCB.

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Statutory eligible costs for the grant include "design, engineering and physical construction
and will not include the costs of planning, fmancing, and environmental documentation,
mitigation costs, legal expenses, site acquisition or water rights."

The financial obligations of the CRWCD and the CWCB ale based on the total costs of
the project. The total amount of the grant shall not exeeed 5 percent of the eligible cost of the
project. The CR WCD is responsible for the mitigation cost ranging up to the first 5 percent of
the project costs, and the grant is for the mitigation costs ranging up to the second 5 percent of
the project costs. The CRWCD is responsible for all mitigation costs which exceed 10 percent
of the total project costs. In this case however, the Wildlife Commission, as part of their
evaluation of the project Mitigation Plan, established the maximum grant amount of
$1,278,828.00 through resolution dated December 12, 1991 based on estimates of project
construction and mitigation costs.

An outline summary of the Mitigation Plan prepaled by BIO-WEST, Inc. of Logan, Utah
and Resource Consultants, Inc. of Ft. Collins, Colorado is attached along with the cost estimate
of the program. Table 9 presents the annual Costs assodated with the mitigation plan and Table
10 presents the total cost summary for the major components of the mitigation and enhancement ..
package. ,.,

The construction project is approximately 87 percel}t complete with construction scheduled
for completion in June 1995. Pursuant to this, the definition of construction costs in the statutes
is "the best estimate of the physical construction costs as fixed by the CWCB as of the date of
the grant application." Legislation also states that "under no circumstances shall the total amount
of the grant be disbursed in installments that exceed 70 percent of the grant during any fiscal
year."

In anticipation of the grant application, the Director of the CWCB requested, and the
Legislature authorized on July 1, 1990 $1,000,000 deposited in the Wildlife Mitigation Account
of the CWCB Construction Fund.

DISCUSSION

The CRWCD has followed the established pro(:ess in submitting a grant application and
documenting all project design and constrllction co;sts as well as all mitigation costs (see
attachment). These costs include both contract costs and actual construction costs to date. The
application also accurately outlines those items eligibl\~ and ineligible for inclusion in the grant
as provided for by the legislation. This documentation indicates the eligible costs actually exceed
the maximum grant amount defmed in the Wildlife Commission 1991 Resolution. e