Capital Costs of Recovery Facilities. Capital costs for developing recovery facilities include the costs of planning, permitting, design and construction, as well as any cost of construction financing. According to the Interstate Water Banking Agreement, capital costs may be borne exclusively by SNWA, payable in advance if recovery facilities are dedicated exclusively to recovery for SNWA, or may be borne proratably by multiple interstate or intrastate users of the same recovery facilities. Additional information, including methods for calculating capital costs, is set forth in as Example A in the Appendix to this Agreement. The parties agree that, in each annual meeting in which SNWA‟s initial or amended recovery request schedule is discussed, the parties shall disclose all available information regarding their best estimates of the costs of planning, permitting, design, construction and construction financing and the plans and intentions of any other party who may seek recovery utilizing CAWCD‟s recovery facilities.
Capital Costs of Recovery Facilities. The Interstate Water Banking Agreement provides that SNWA will pay for all costs of recovery, including costs to develop recovery facilities. The capital costs for developing recovery facilities include planning, permitting, design, and construction costs. It is contemplated that CAWCD could finance the initial construction of recovery facilities and collect a capital recovery fee over the appropriate recovery period, or that SNWA could provide the financing for initial construction. If SNWA pays “up front” the facilities will be “dedicated” to SNWA recovery – i.e., that SNWA would have first priority use for recovery of SNWA banked water over recovery of other water. If a specific set of recovery facilities is projected to be used entirely or almost entirely for recovery of SNWA credits, then SNWA would be expected to finance the entire cost for those facilities. If the facilities were expected to serve both SNWA and other CAWCD/AWBA recovery purposes, then initial capital costs could be shared in an appropriate fashion. For example, if a new recovery well facility was to be constructed in Pinal County to recover primarily SNWA credits for the first 20 years, then to recover credits for the Central Arizona Groundwater Replenishment District (CAGRD), it is anticipated that the costs will be financed primarily by SNWA. CAWCD will manage the work from planning through start-up. CAWCD could share, prorata on planned use, the costs of planning, permitting and design. SNWA would pay for construction, pumps, motors, associated electrical facilities, and any water delivery or other facilities needed. When the facilities are no longer needed for SNWA recovery, CAWCD will pay SNWA the remaining unamortized value for the installed facilities. The terms, service life, and interest rates for amortization will be agreed upon during the project planning phase. If CAWCD uses the recovery facilities during the period that SNWA has first right for use, CAWCD will pay an appropriate use rate per acre-foot of recovery. Example B
Capital Costs of Recovery Facilities. Capital costs for developing recovery facilities include the costs of planning, permitting, design and construction, as well as any cost of construction financing. According to the Interstate Water Banking Agreement, capital costs may be borne exclusively by SNWA, payable in advance if recovery facilities are dedicated exclusively to recovery for SNWA, or may be borne proratably by multiple interstate or intrastate users of the same recovery facilities. The parties agree that, in each annual meeting in which SNWA’s initial or amended recovery request schedule is discussed, the parties shall disclose all available information regarding their best estimates of the costs of planning, permitting, design, construction and construction financing and the plans and intentions of any other party who may seek recovery utilizing CAWCD’s recovery facilities. [Example to be inserted]
