vista ridge update...jan 18, 2017 · ciac meeting tim skoglund, p.e. senior director –vista...
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![Page 1: Vista Ridge Update...Jan 18, 2017 · CIAC Meeting Tim Skoglund, P.E. Senior Director –Vista Ridge Vista Ridge Update January 18, 2017. January 18, 2017 Vista Ridge Update Page](https://reader033.vdocuments.site/reader033/viewer/2022051410/6031187c63df2867ec59a189/html5/thumbnails/1.jpg)
CIAC Meeting
Tim Skoglund, P.E.Senior Director – Vista Ridge
Vista Ridge Update
January 18, 2017
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January 18, 2017
Vista Ridge UpdatePage 2
Holds Groundwater Leases
Public‐Private Partnership
• P3 Contracts signed November 2014
P3 Framework: Risk TransferGlobal Experience: Water and PowerFinancing: Equity + Bonds/Loans Project Construction Firm (2011)
• 50,000 AFY Water Supply• 30 Year Term + Asset Transfer• SAWS pays only for Water Delivered: Fixed Price + O&M
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Vista Ridge UpdatePage 3
Holds Groundwater Leases
Project Company Change in Control
• Change in Control – June 10, 2016
Project Construction Firm (2011) Controlling Project Owner (2016)
• 80% Controlling Share of Project Company (Vista Ridge LLC)• Project Continuity and successful SAWS track record• Better standards for materials, equipment, construction
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Vista Ridge UpdatePage 4
Project Timeline
Commercial CloseNovember 4, 2014
Financial CloseNovember 2, 2016
Water Delivery Begins~ 2020
Asset Transferto SAWS
~ 2050 Debt Service Drops Off SAWS pays lower priceRate Lock ($1,606/AF)
May 17, 2016
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Vista Ridge UpdatePage 5
Tax‐Exempt Interest Rates July 1993 – May 2016 Locked in the Lowest Rates in Last 30 Plus Years
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Tax‐Exempt Interest Rates Commercial Close to CurrentLocked in 36 Basis Points off All‐Time Low and 126 Basis Points Less than 12/1/16
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Vista Ridge UpdatePage 7
Millions of Dollars in Savings
Date/ContractualDetermined
Rate
Capital & RawGroundwater
Unit PriceAnnual Cost for
50,000 AF*Maximum 6.04% $1,959 $97,950,00011/4/2014 4.83% $1,739 $86,950,0007/22/2015 4.97% $1,760 $88,000,0002/19/2016 4.45% $1,680 $84,000,0003/7/2016 4.59% $1,702 $85,100,0004/12/2016 4.24% $1,649* $82,450,0005/17/2016 3.92% $1,606 $80,300,0006/10/2016 3.77% $1,586* $79,300,00011/2/2016 4.19% $1,643* $82,150,00012/1/2016 5.18% $1,794 $89,700,000
Interest Rate Lock Saved SAWS ~ $1.9 Million a Year Compared to Financial Close Rate
* Staff estimates.
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November 2nd Project Company Locked in RatesFinancial Close Avoided Post‐Election Increase in Interest Rates
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Development and Financing• Easements (25% at Financial Close)• Hydrogeology• Basic Engineering• Permitting• Survey• Financing
Project PhasesConstruction• Detailed Design • Construction• Commissioning• Performance Testing
Commercial Operation• Maintenance, Repair, Replacement• Annual Budget Review (Budget Panel)• SAWS pays O&M and Electricity Cost• End‐of‐Term Condition Assessment
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Infrastructure18 Wells
140‐mile Pipeline
3 Pump Stations
Treatment: T, Cl, pH
$540 million Construction
$927 million Capital Cost
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Vista Ridge UpdatePage 11
SAWS Responsibilities
Establish Electric Power Service
Monitor Project Execution
Wholesale Water
Integration Infrastructure in San Antonio
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Vista Ridge UpdatePage 12
TERMINUS
IPS #2
IPS #1
HSPS & WELL FIELD
ELECTRIC SERVICE PROVIDER BOUNDARY MAP
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Monitor Project ExecutionDevelopment
Review
Design Review
Construction Observation
Operations Monitoring
• CH2M Hill Engineers hired as Technical Advisor– ESP Support– Monitor Execution
• $4.5 million over 5 years
• Time and Material Contract
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Vista Ridge Integration• Treatment Facilities
– Calcium, (Iron?)
• New Pump Station
• Ground Storage Tanks
• Valves, Pumps, Controls
• Pipelines– Condition assessment – Rehab/replace– New construction: 5 miles
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Vista Ridge UpdatePage 15
Terminus Site
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Integration Project – Alternate Procurement Method
• Design‐Build Method– Schedule and Collaboration Benefits– Owner’s Rep + Design Builder
• Black & Veatch hired as OR– Preliminary Engineering/Studies ($4.3 million)
– Project Management– Construction Management
• Design Build Firm (TBD)– $125 million
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Vista Ridge UpdatePage 17
Integration Project Timeline
Bitters PSBasin PS
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CIAC Meeting
Tim Skoglund, P.E.Senior Director – Vista Ridge
Vista Ridge Update
January 18, 2017