Alternatives for fixing holes in tile roof felt
I have some holes in the tarpaper/felt close to the edge of the valley flashing on a concrete tile roof. The holes are in the bottom 8 feet of the roof, and the paper above this point appears fine to me. One roofing contractor has looked at the situation and has suggested that he redo the entire valley. His steps would be to remove the existing flashing, remove the tile and battens 5 feet on either side of the valley, put down new felt (taking care to layer it properly), then install new 5 ridge flashing. He says the 5 ridge flashing will prevent this problem from ever occuring again. He wants $65/foot for this repair and the valley is 23 feet long. I believe that I have several other valleys with the same issues so the cost of this type of repair will be close to $5K. I am out of work right now so this would be a real stretch for my finances.
Is there a simpler way to repair the leaks that have developed? I have included a picture of one of the holes in the paper so that you can see what the problem looks like. My thought would be to pick up the existing flashing, remove the tiles and battens for a foot or two on either side of the flashing, clean up the holes in the paper so it lies flat, then put ice and water shield over the holes, extending 1 foot or so beyond the edges of the holes. Then reinstall the flashing. Would this work? I will probably only be in this house for another 3-5 years, so it would not need to be a 25 year solution. Another alternative would be to put down new paper on top of the existing paper. This would require that I remove a lot more tiles and battens and that I figure out the layering thing. Is this a better idea, and if so, where would I find instructions on how to put down the paper properly?
Thanks for any help you can provide.