Arkansas - Round Mountain Water System Improvement Project_Water Activity Summary

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Another objective in the SWSI Report was to optimize existing and future water supplies and maximize the use of existing and new in-basin supplies. RMWSD's project does both, it optimizes the existing system and will provide for future growth. And even though RMWSD only serves a small population, it still serves residents in Custer County who are within the Arl(ansas River Basin. This is a perfect opportunity for an isolated county within the Basin to participate fairly in the Roundtables distribution of funds. The promotion of cost effectiveness is another objective of SWSI (i.e. allocate cost to all beneficiaries fairly and achieve benefits at the lowest cost). The Arl(ansas Basin commented that the cheapest solution is not always the best. RMWSD's project is not cheap, but if we cannot attain affordable funding methods now, costs will only increase later, and the consumer will be affected the most with higher utility bills. The district's debt per capita of $878 is close to the statewide average of $899 for water and sewer debt. RMWSD's monthly water rates of $34.27 are currently higher than the statewide average of $32.45. The last objective I want to mention is the protection of cultural values, maintaining the quality of life unique to each basin and providing for long-term needs beyond 30 years. RMWSD's study completed by the Crabtree Group of Salida was based on needs projected for a 25-year growth period. Our project will provide a solution that addresses existing and long-term needs for our area. A statement from the SWSI Objectives Draft reads, "While recognizing that it is important to have a healthy economy in each basin, it was determined that the clearest linl( between water management and economics is through having a dependable supply for all uses." RMWSD is asl(ing for $120,000 of Basin Grant Funds to help accomplish providing a dependable municipal water supply for existing and future Colorado residents living in a portion of the Arl(ansas River Basin. Issues/Additional Needs: The Project involves elements of raw water development and treated water supply infrastructure. While the CWCB has historically focused on raw water development staff does not believe that any restrictions exist under the legislation that created the Water Supply Reserve Account that would prohibit providing funding for treated water infrastructure. The Applicant has done a nice job to segregate the primarily raw water components. Additional budget detail is needed for electrical supply, building, water quality testing and engineering. Additional clarification is needed on how the following elements of Phase 1 are being accomplished: . Water main . Bacl(-up generator . System looping Staff Recommendation: Staff recommends approval of up to $120,000 to complete the Round Mountain Water and Sanitation District - Water System Improvement Project. Approval is contingent on successful resolution of the above issues/additional needs. All products, data and information developed as a result of this grant must be provided to CWCB in hard copy and electronic format as part of the project documentation. This information will in turn be made widely available to Basin Roundtables and the general public and will help promote the development of a common technical platform. 3