BOARD01770

• Board Meeting Date: 1/24/2006
• Description: CF Section - Review of Revised Guidelines for Financial Assistance through the Colorado Water Conservation Board Construction Fund
• Board Meetings - Doc Type: Memo

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the planning horizon, alternatives are formulated to meet the deficit by reducing demands
or increasing supplies, or both, Alternatives are then formulated to supply water to the
project service area under varying degrees of reliability,

2.4 Proiect Description - Analvsis of Alternatives & Selected Alternative

This section further documents the proj ect need by assessing existing and future
conditions, identifying problems and deficiencies, and formulating and evaluating
potential solutions,

2.4.1 Analvsis of Alternatives

Each study should include the formulation and evaluation of a reasonable number of
alternatives for accomplishing the study objective(s). The number of alternatives will
depend upon the objective and scope of the Loan Feasibility Study, Generally a minimum
of three alternatives should be presented, one of which should be the "no-action
alternative," Each alternative should be described in terms of its various components
(both structural and non-structural) and the manner in which the proposed facility will
operate. Examples of non-structural elements are improvements in the management of
developed water supplies, water transfers from existing to new uses and new or revised
institutional arrangements,

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Evaluation Factors - Alternatives should be evaluated to distinguish the differences
between them, in accordance with evaluation factors suggested below: Project
evaluation factors typically used are as follows:

a. Outputs/vields - Project outputs are typically expressed in terms of acre-feet of
water supply or in units of energy for hydropower. For municipal water supply
projects, the estimated safe annual yield of the project should be given, The safe
annual yield is the amount of water the proj ect is expected to yield during each
year of a critical dry period, For irrigation projects, the yield should be
expressed in terms of acre-feet of water supplied to the project service area on an
annual basis, The degree of reliability or firmness of a particular yield should
also be given, For projects that involve the rehabilitation of existing facilities,
the yield should be expressed as the incremental difference in water supply with
and without the project.

b, Costs (capital, operations and maintenance (0 & M), total annual costs and costs
per unit) - A cost comparison should be made between alternatives, The cost
analyses should consist of: (1) an estimate of total capital costs and total annual
(0 & M) and replacement costs for each alternative, and (2) a total annual cost
for each alternative calculated by adding 0 & M to amortized capital costs, and
(3) a cost per unit of project output, i,e, annual project cost per acre-foot of water
delivered,

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c, Impacts - Identifies and compares potential impacts to the man-made
environment and the natural environment:

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