From The Watch (Samantha Wright):
Located in Ouray County, about three miles south of Ridgway off of County Road 5, Lake O has been the Town of Ridgway’s primary municipal water source for nearly 100 years. The man-made lake is filled with water diverted into a natural basin via the Ridgway Ditch.
The Lake Otonowanda Rehabilitation Project will allow the town to exercise its full decreed storage right there by improving the lake’s capacity sixfold, from 100 to 600 acre feet, while restoring historic tunnel outlet works, which collapsed decades ago, to allow water to flow from the lake to town without having to be pumped.
The project is split into two phases, addressing tunnel restoration and lake excavation. Town officials had hoped to get started on the tunnel restoration phase last fall, but received only one response to a Request for Proposals issued in September 2013.
Hoping to attract more bidders, council and town staff agreed to broaden the scope of the contract to encompass both the tunnel restoration phase and lake excavation phase in a single package, and put the project out to bid in January.
This time around, there was a healthy response from contractors, with Town Manager Jen Coates reporting that over 30 people attended the project’s pre-bid meeting on Jan. 30; five of those companies went on to actually bid on the contract, with bids ranging from $1.4 to $1.9 million. The town budgeted up to $2 million for the construction project (bonding requirements put many smaller-scale local contractors out of the running, Coates said).
The Colorado Water Conservation Board awarded a $1.2 million grant/loan package to the Town of Ridgway last fall to help finance the Lake O project. In late January, the town applied to the Colorado River District for additional grant funds to cover a portion of the project construction.