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• Board Meeting Date: 5/23/2007
• Description: IWMD Section - Water Supply Reserve Account May 2007 Grant Allocations
• Board Meetings - Doc Type: Memo

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.

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