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It is anticipated that repayment of the loan will be via a pledge of revenues issued by each of the <br />participating water providers. <br />The alternative cost of not building the conduit has been established between $250 million and <br />$350 million. The alternatives require upgrade of almost every treatment facility as well as <br />building new treatment plants in the Arkansas Valley. Additionally, the two municipalities that <br />have reverse-osmosis plants are facing a brine disposal problem. The State is telling them that <br />they will no longer be able to directly dispose of their brine to the river. The alternatives are <br />very expensive and will continue to get even more expensive as regulations tighten. <br />Economic Analysis <br />The economic benefit of this project goes to the very survival of many of these small towns. <br />With the threat of shutdown looming for some water providers due to being out of compliance <br />with Health Department standards, there is the possibility of these small municipalities being <br />forced out of existence. Any future economic sustainability or development in the lower <br />Arkansas Valley will be predicated on the ability to provide clean water to any business or <br />industry looking at locating in the Arkansas Valley. Without this conduit, there is no guarantee <br />that clean water will be available to entice the needed economic development to sustain the <br />Arkansas Valley. <br />Social and Physical Impacts <br />The conduit will enhance many social aspects of the Arkansas Valley. Currently people use <br />bottled water, under sink reverse osmosis treatment, water softeners, and other methods of <br />treatment just to have a decent source of water for drinking and cooking. In some places, even <br />the odor of the water is enough to prevent people from drinking it. Clean drinking water is <br />essential to the social fabric of the Arkansas Valley. Physically, the water delivered down the <br />conduit will help in many ways. Currently pipes in houses and businesses deteriorate rapidly due <br />to the quality problems of the water. Household appliances do not last nearly as long as they <br />should due to the water quality problems. So by providing this cleaner source of water, both the <br />Social and physical aspects of life in the valley will increase dramatically. <br />Conclusions <br />1. The Southeastern Colorado Water Activity Enterprise is a legal entity for contracting <br />purposes with the proven ability to manage projects of this size. <br />2. This project is of such importance to the people of Colorado that our federal legislative <br />delegation is willing to acquire legislation and funding. <br />3. This pipeline will be an immediate and long-term solution for many smaller communities <br />that are currently out of compliance with Health Department and Clean Drinking Water <br />requirements. <br />4. This conduit will be a vital piece of the future for this vast section of the state. <br />5. The project is technically and financially feasible. <br />10 <br />