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C150289 feas study
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C150289 feas study
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Last modified
2/1/2010 4:59:12 PM
Creation date
4/1/2009 3:44:28 PM
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Loan Projects
Contract/PO #
C150289
Contractor Name
South Metro Water Supply Authority
Contract Type
Loan
County
Adams
Arapahoe
Douglas
Arapahoe
Douglas
Denver
Loan Projects - Doc Type
Feasibility Study
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the man-made and natural environment. Furthermore, purchasing existing capacity will not <br />require the myriad of permits needed for a new pipeline construction. For additional detail <br />please see the SMWSA Regional Master Plan. Based on the lower cost, ease of implementation, <br />and lack of significant impacts the acquisition of pipeline capacity in the ECCV Northern <br />Pipeline is selected as the preferred alternative. This pipeline is a regional water transmission <br />line. Water will be delivered to raw water storage facilities as well as to individual participants <br />for subsequent treatment and delivery via existing distribution systems. <br />Implementation Schedule <br />The implementation schedule for this project is straight forward with negotiations of final terms <br />and condition taking place over the next few months and final closing on the acquisition <br />scheduled for April 2009. <br />Permitting <br />None required. <br />Institutional Considerations <br />The SMWSA will be the lead entity on this project. It will be the contracting entity for all <br />financing, and acquisition of the pipeline capacity on behalf of the participating entities. <br />SMWSA will acquire infrastructure and water rights via participation agreements. Individual <br />members who wish to acquire ownership in a particular project will commit to payment thorough <br />SMWSA for their portion of the project. Such participation agreements will meet the <br />requirements of CWCB. <br />Financial Program <br />The cost of the project is $5,600,000 for SMWSA to acquire a maximum of 6.55 MGD of firm <br />and variable capacity. The loan repayment will be based on a pledge of revenues from each of <br />the 4 participating water providers. Appropriate "step-up-provisions" will be included in the <br />loan contract consistent with CWCB requirements. <br />SMWSA is not subject to Tabor and the 4 participating entities have established water enterprise <br />funds to assist them in conforming to Tabor requirements. <br />Economic and Social Analysis <br />The economic benefit of this project will be realized by both the 4 participating water providers <br />and the SMWSA members as a whole. The acquisition of pipeline capacity in the ECCV <br />Northern Pipeline is a foundational element to allow the SMWSA members to convey existing <br />and obtain renewable water supplies for current and future residents. Absent this vital structural <br />water supply element the long-term water security of the area would be in question and the <br />potential impact to property values and economic development could be devastating. <br />10 <br />
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