Arkansas - Las Animas Water System Improvements_App 2

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Water Supply Reserve Account - Grant Application Form Fonn Revised May 2007 4. The water activity meets the provisions of Section 37-75-104(2), Colorado Revised Statutes. The requirements/language from the statute is provided in Part 3 of the Criteria and Guidelines. This application meets the provisions of Section 37-75-1 04 (2) (c) C.R.S. by incorporating information contained within the Statewide Water Supply Initiative (SWSI) report dated 2004, eliminating a water gap recently defined within the Arkansas River Basin, incorporating various governmental agencies, environmental, non-profit, and agriculture organizations, water providers, and other stakeholders. These stakeholders all voted unanimously for the project and have placed their endorsement behind the project. Furthermore, the project has not only been presented to and found acceptable by the Arkansas River Roundtable, but also has been determined to be acceptable by the: Colorado Department of Public Health and Environment, Colorado Department of Local Affairs, Colorado Water Resources and Power Development Authority, Colorado Division of Wildlife, United States Fish and Wildlife Service, and the Colorado Historical Society. Therefore, this project is meeting all provisions stipulated within Section 37-75-104(2) of the Colorado Revised Statutes. 3. For Applications that include a request for funds from the Statewide Account, describe how the water activity meets the Evaluation Criteria. See Part 3 of Criteria and Guidelines. PromotinQ Collaboration and Cooperation The water system improvements project being undertaken by the city will have a positive impact on Bent, Otero and Prowers Counties as a whole in addition to the various communities up and down the Valley. The positive impact will come in the form of economic development. The Lower Arkansas Valley has experienced significant departures of some of its largest employers, several natural disasters in the form of drought, blizzards and tornados, and its water resources being purchased and transported for development along the Front Range. This has resulted in a depressed economy for a number of years. As a result of the project, job creation will occur not only at the correctional facility, but also the various service industries required to service the jobs associated with the correctional facility. The water project is required due to the fact the city will not be able to meet the maximum day water demand with its current facilities. Therefore, the only cost-effective means to provide water to meet the demand is by improving and replacing a portion of the city's water collection system and expanding the WTP. This results in the city using their current water resources more effectively and encourages surrounding communities to follow suit. Furthermore, the city is aggressively trying to tighten up its water distribution system to bring down the volume of water loss. This effectively reduces the water demand on the entire system and will result in cost savings, saving staff time, and promotes conservation by the city's constituents. FacilitatinQ Water Activitv Implementation As a result of the various funding agency requirements, the city has pursued all reasonable available financing. The agencies involved with the project include the Colorado Department of Local Affairs, Colorado Department of Public Health and Environment, and the Colorado Water Resources and Power Development Authority. As a result of the allocated funds from the said agencies, the city is still falling short of its desired total project budget by $450,000. This amount cannot be absorbed by the city due to the significant cost. Furthermore, the city is already contributing $400,000 of local match to the project. Given the magnitude of remaining capital funds required to undertake the project, the city simple does not have the additional debt capacity or the retained earnings to proceed with all aspects of the project. Furthermore, no other governmental agency will provide additional grant funds of the magnitude requested to supplement the project budget. Therefore, a sizable portion of the proposed project will not be realized if the Roundtable funds are not committed, specifically the distribution replacement portions of the project will be F:\WPDATA\Las Animas\Water\05 WSlmp\Financial\Roundtable\06-07 Application (may 07).doc 7