BOARD00061 ‎(2)‎

• Board Meeting Date: 11/13/2006
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Project Loans - Southeastern Colorado Water Conservancy District Water Activity - Arkansas Valley Conduit Project
• Board Meetings - Doc Type: Memo

Arkansas Valley Conduit
November 13-15, 2006

Agenda Item10a

The proposed filtration plant will provide preliminary treatment, or "pre-conditioning", of the water to .
remove turbidity and to provide a more unjform quality of water to downstream users. The water
would be considered non-potable water, have no residual disinfection, and would not meet Federal
or State public drinking water standards. The level of treatment proposed would decrease
operational and maintenance costs of the conduit, and also reduce turbidity/sludge accumulation in
the on-line storage tanks. Staff feels that financing a project with this level of preliminary water
treatment does not violate the statutory restriction that CWCB funds not be used for "domestic
water treatment and distribution systems."

The Total Project cost is estimated to be:

1.
1.
2.
3.
4.
5.
6.
7.

Environmental Study (EIS)
Engineering & Admin. (11%)
Legal (1 %)
Permitting (1.5%)
Construction Management (5%)
Construction Cost
Construction Contingency (20%)
Rig hts-of -way/Easements
TOTAL

$ 4,000,000
27,000,000
2,000,000
3,000,000
7,000,000
$200,000,000
50,000,000
7.000.000
$300,000,000

Sources of Funding for the Project would include:

1. CWCB Loan
2. Federal WRDA - 2006 (pending)
3. Federal - Future Appropriation
TOTAL

$60,000,000 (available July 1, 2007)
69,000,000 (available Oct. 1,2007)
171.000.000
300,000,000

.

Schedule - Implementation of the conduit is contingent upon federal legislation. Once legislation is
passed, appropriation of the money is required. The District expects federal funds to be available at
the beginning of the 2008 Federal Fiscal Year (Oct. 1, 2007). Based on current understanding of
the congressional process, the Enterprise is planning to begin the design phase of the conduit in
late 2007. Once the preliminary design is completed, the NEPA process will begin. This is
expected to take about two years to complete. All of these costs are included in the legislation and
the requested loan package from the CWCB. It is anticipated that actual construction will begin
following the NEPA process at which point it should take about two years to complete the conduit.

It is expected that funding for the Conduit will come in phases. The WRDA bill that is expected to
pass this year, should have appropriations of $69 million for the Federal Fiscal year beginning
October 2007. It is expected that subsequent funding will be appropriated each year at various
amounts as our delegation is able to secure them. If funding is appropriated each year it could take
6 years for the completion of the conduit. This time frame ties in with the preliminary engineering,
NEPA and construction process.

Permittinq - No easements or rights of way have been obtained at this point. These will be obtained
during the preliminary design phase. Permitting will be obtained after the NEPA process is
completed. The only permitting issue addressed in the USBR "Look-back Study" study is an
Environmental and a Cultural Resource Investigation.

Institutional Concerns - The Enterprise will be the lead agency on this project through the .
completion of the construction of the conduit. It will be the contracting agency for all financing,

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