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.,., \> Round Mountain Water and Sanitation District Water System Improvements Project ATTACHMENT B . B.3, Overview of Water Proiect (Continued) Funding assistance is needed because the District is already heavily indebted and had to divert approximately $135,000 per year from infrastructure needs to the purchase of water rights. These extreme unexpected costs of obtaining replacement water rights for the original wells have placed a finandal strain on the District. The District has been self- sustaining through tap and service fees since 1986 and has not appliea for grant funds of any kind during that period. The District now finds itself unable to make the capital improvements nebessary to maintain the health, safety and welfare of its citizens and expand the system for smart growth without placing ah unrealistic cost burden on its customers. I As previously stated, the District encompasses 6,345 acres, but only 9urrently serves about one-tenth of that, or 640 acres. The District serves most citizens in the small, rural, mountainous Towns of Silver Cliff and Westcliffe, both located in i Custer County. Both towns have grown considerably since the year 4000. Because of increased growth in our community and the construction of new homes and facilities (i.e. new high school and gymnasium, park facilities), low water pressure and insufficient fire flows have been recognized within our water sYstem. With increased state funding resources now available, the opportunity to improve and expand the water system ban be achieved. By leveraging funds from both the DOLA grant and CWCB Basin Grant and matching District funds, the District can accomplish the goal of completing Phase 1 of this water project. RMWSD, Silver Cliff, -Westcliffe and the Wet Mountain Fire Protect,ion District have worked collectively during the past year to understand the ensuing problems of the water district and come up with a plan to address them. Improved communication among these entities has been instrumental in workink together to achieve our goals. This project is important to RMWSD, as well as the towns and firl district, because it makes iIDrnediate infrastructure improvements and expands the system within a shorter period of tixrle than the District could otherwise accomplish. Last . spring Silver Cliff experienced a grass fire (started by illegal fiteworks) east of town, adjacent to a trailer park. Coincidentally this fire occurred the same day the engineer doing the I evaluation of the water system was testing fire flows from the District's fire hydrants. The area of the fire is the most affected by the lack of water pressure and fire flow. , Luckily the town's maintenance man was at the town shop just south of where the fire occurred and was able to use the town grader to stop the fire from spreading before the fire departm~nt could get there with water trucks and equipment. The fire burned several acres in a matter of minutes, but could have Been disastrous and life threatening had the wind been i blowing like the day before. The water pressure and fire flow would vot have been sufficient in this area to prevent loss of property and lives. This is one example of why there is an urgent nee? to improve and expand the water system. I RMWSD's study/service area is located within the Towns of Silver <j:liff and Westcliffe in Custer County. The towns are equally located, about 60 miles and a one-hour's drive, southwest ~om Pueblo, south of Canon City, east of Salida, and north of Walsenburg. The towns are situated in the Wet Mountain yalley at the base of the Sangre de Cristo Mountain Range, at an elevation of about 8,000 feet. I I Silver Cliff/W estcliffe are small, rural towns with a combined population of approximately 1,056 people. The proposed water project will increase residential and commercial growth to th~ south of Westcliffe, and substantial residential and much needed commercial growth east and south of Silver Cliff. BJth towns have prime commercial properties that are limited to development due to the lack of availability of water serv~ces by the District. Westcliffe, the county seat and business hub of the county, is virtually land-locked and limited to growth to the south. Silver Cliff, the larger of the towns, but more financially constrained due to lack of commercial growth, ~as prime commercial properties to the east, but lacks sufficient water pressure and fire flow to serve these properties. P~operty 'owners and potential future developers have been participants in the planning process of the expansion of the water system and are willing to contribute to the project through donations of property for water tank site, easements, and cosfs of main extensions through their properties. Commercial growth will provide jobs to the community and a~ditional tax revenues to the town coffers. Land .' development will provide facilities to improve the quality of life for~ existing and new citizens of our community as well as visitors to the area. For example, one developer with property lobated in Silver Cliff is discussing adding equestrian, biking and walking trails in their Master Development Plan ~Ugh"t' their 6,000 acres.