Board Meeting 11/16/2004

• Board Meeting Date: 11/16/2004
• Description: CF Section - Non-Reimbursable Investments - Town of Florence - Oak Creek Reservoir Feasibility Study
• Board Meetings - Doc Type: Memo

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EXHIBIT

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Grant Application
Colorado Water Conservation Board
Section (4)

Purpose. The Oak Creek Reservoir will provide flood control for the City of Florence from Oak
Creek, and provide 2250 acre foot of storage for the City of Florence, and the Towns of Coal
Creek, Williamsburg and Rockvale. The reservoir has potential storage and use for Pueblo West
Metropolitan District and the City of Canon City in addition to the aforementioned entities, will
benefit the entire Arkansas River Basin, and rises to "a matter of state-wide concern."

Need. Oak Creek begins five miles south-southwest of Florence in high elevations. Being fed
by many tributaries, summer showers of durations of as long as one hour, as was the case with
the 1923 flood, can quickly fill tributaries and fill the Oak Creek Channel. Florence has
experienced severe flooding from Oak Creek throughout the years. The floods of 1913, 1923
and 1941 were especially damaging. Significant areas of western Florence have been flooded
from Oak Creek, with water channels, streets and houses destroyed or damaged. Many property
owners in west Florence must purchase FEMA flood insurance at a cost of approximately $900 a
year.

Enclosed is a copy of the report by Martin and Wood Water Consultants dated August 2001
entitled "Analysis of Florence Regional Water System Need for Storage" Exhibit "F". The
report details the need for storage, storage options and evaluates Florence's participation in the
Preferred Storage Options Plan and Enlargement of Southeastern Water Conservancy District's
facilities. The report concludes that the regional entities of Florence, Coal Creek, Rockvale and
Williamsburg will require raw water storage, given estimated growth projections, by 2010. The
estimated completion date, provided no unanticipated contingencies delay the project, is
completion of the reservoir in 2010.

In December 2002, the U.S. Army Corps of Engineers completed a Reconnaissance Study of a
dual purpose facility to contain a 100 year event of Oak Creek, and provide for 2250 acre foot of
storage. The Reconnaissance Study was documented in a "Fact Sheet" attached hereto as
Exhibit "D". There are 292 structures in the 100-year floodplain, and the Corps estimated annual
damage of $1,100,000. That study determined that the cost benefit analysis of such a facility
would be favorable.

In August 2004, the City of Florence and the Corps of Engineers signed an agreement for a
Feasibility Study, copy attached hereto as Exhibit "R", which details cost sharing and
programming of essential tasks in determining the possibility of the joint flood control and
storage reservoir. The cost to the City of Florence and regional entities for our portion of the
Feasibility Study is $448,000, of which this grant request of$200,000 would fund one-half of the
amount Florence will need to contribute.

Service Area. The Oak Creek Reservoir Project will benefit the entire regional water system that
includes the combined water rights of the City of Florence, Town of Coal Creek, Town of
Williamsburg, The service area also includes the East Florence Water Association and the
Federal Bureau of Prisons, Florence Correctional Complex. See Service Area Map, Exhibit "f'.