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Feasibility Evaluation of the Arkansas Valley Pipeline <br />Water Works! Committee <br />July 2003 <br />Based on these conclusions, the Waterworks! Committee decided to proceed with Phase 2 of the <br />project. <br />Phase 2 <br />The conclusions developed in Phase 2 of this study are summarized below: <br />1. Potential pipeline alignments for the Arkansas Valley Pipeline fall into two categories: <br />(1) alignments that require pumping and (2) alignments that do not require pumping. <br />Alignments that do not require pumping are preferred. Pipelines that do not require <br />pumping are more reliable, they require less operating storage, and they are less <br />expensive to construct, operate, and maintain. A preferred pipeline alignment that does <br />not require pumping would approximately follow the Bessemer Ditch through the City of <br />Pueblo, would parallel the south side of Highway 50 to the City of Fowler, would cross to <br />the north side of Highway 50 and the Arkansas River slightly west of Fowler, and would <br />follow an easterly alignment to the City of Lamar (Figure 1). The estimated project cost <br />for construction of a pipeline along this alignment is $175 million. This estimated cost is <br />for a welded, all-steel pipeline, land acquisition for easements, necessary pipeline <br />appurtenances, and 16 million gallons of reinforced concrete water storage tanks located <br />along the alignment. <br />2. The pipeline should be designed to transport raw water to each of the local water <br />suppliers. Each water supplier should be responsible for treating the water prior to <br />distribution to water customers. The estimated construction cost to modify and expand <br />existing treatment facilities to accommodate the new Arkansas Valley Pipeline water <br />supply is $20 million. <br />3. The estimated Net Present Value of the proposed Arkansas Valley Pipeline project, <br />including construction, operation, and maintenance costs, is approximately $235 million. <br />This compares favorably with the estimated Net Present Value of the No Action <br />alternative, which is approximately $187 million. <br />4. The financial capabilities of the participating agencies are estimated to be inadequate to <br />fund the construction of the proposed Arkansas Valley Pipeline. It is estimated that the <br />full financing capabilities of the counties, cities, and water agencies in the project area <br />could finance approximately 25 percent of the project cost for the proposed facilities. <br />5. There are two likely institutional frameworks, either a Water Authority or a Water <br />Conservancy District, for developing an institution with the authority to construct, <br />operate, and maintain the proposed Arkansas Valley Pipeline. Key issues in determining <br />the most appropriate type of institution are the ability to pursue funding sources and the <br />responsiveness of the institution to the participating agencies. <br />01284 03-07-21 feasibilty report executive summary <br />GEI Consultants, Inc. 16 <br />