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entity has been interested in constructing infrastructure beyond their service areas. <br /> Summary of Reason for Rural Water System <br /> The centralized rural water system proposed by the Pine River Irrigation District is not simply a <br /> rural development tool but includes many benefits to the southeast LaPlata County rural <br /> community, including: <br /> 1. The water system is necessary to meet an existing water shortage by many people in the <br /> service area. The estimated annual household income in the service area is less than the poverty <br /> level which is the largest portion of LaPlata County with inadequate annual incomes. The water <br /> system would serve the area of LaPlata County which is least expensive to build and own a home <br /> and is the only area with future potential for "affordable" housing, if there is a dependable water <br /> supply. <br /> 2. The water system would provide the infrastructure needed to deal with existing and <br /> anticipated future growth. The LaPlata County planning department has stated that most of the <br /> growth in the county the past 10 years has been in the service area, for reasons mentioned earlier <br /> in this amendment, and the growth in the service area will continue indefinitely. A moratorium <br /> or severe limitation on growth has not been considered, largely due to the social issues that arise <br /> by restricting growth. The development of the water system allows the county to continue to <br /> grow and prosper with a wide range of household income levels rather than severely restricting <br /> growth which would result in a homogeneous, high income county. <br /> 3. The water system would provide a safe, dependable, high quality water supply in a region <br /> where ground water supplies are not of predictable quantity or quality. <br /> 4. The water system would provide rural residents with a choice for making an investment in <br /> their water supply. <br /> 5. The water would provide rural residents with greatly improved fire protection. <br /> B. INITIAL SERVICE AREA ALTERNATIVES <br /> The original development plan for the project was to construct a treatment plant adjacent to <br /> Vallecito Reservoir and serve all users from the plant. That plan was changed in 1998 to address <br /> the USDA Rural Development commitment to $8 million in construction funding with the <br /> condition that there must be 920 equivalent residential tap signups before the construction <br /> funding is available. The reason for the 920 taps is so that the average monthly water cost will <br /> be about $50 for 6,000 gallons; a type of feasibility measurement. <br /> With the threshold of 920 taps, alternative sub-areas within the ultimate service area were <br /> investigated to serve as many existing tap sign-ups as possible with $8 million. This analysis <br /> resulted in the initial area starting with a treatment plant near Bayfield and pipelines extending <br /> west and southwest from the treatment plant as shown on the location map. The ultimate service <br /> area will eventually be provided water but with existing funds, the initial service area will be <br /> served first. <br /> 10 <br />