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<br />,1 <br /> <br />'I <br />. <br /> <br />e <br /> <br />. <br /> <br />EXHIBIT <br /> <br />I If C " <br /> <br />Grant Application <br />Colorado Water Conservation Board <br />Section (5) <br /> <br />As detailed III the preceding paragraph, the Oak Creek Reservoir would serve four <br />municipalities, the Federal Correctional Complex, and one district, East Florence Water. The <br />City of Canon City, and the Pueblo West Metropolitan District have also indicated serious <br />interest in participating in this reservoir project. This elCpanded service area would include a <br />stretch of the Arkansas River from Canon City to Pueblo West, and three municipalities south of <br />the Arkansas River. <br /> <br />This grant request of $200,000 would fund one-half of the local portion of the Feasibility Study <br />for the Oak Creek Reservoir. This grant would still require the participating entities (Florence, <br />Coal Creek, Rockvale and Williamsburg) to contribute an additional $248,000 to complete the <br />Feasibility Study. The median household income of households in Florence in 1999 was <br />$29,628, as reported by the 2000 Census. Profile of Selected Economic Characteristics, DP-3, <br />Florence city, Colorado. Florence, Coal Creek, Rockvale, and Williamsburg recently funded a <br />$13,000,000 project to upgrade water treatment facilities to comply with the EPA Safe Drinking <br />Water Standards Act, as adopted by the State of Colorado. Our available funds to complete this <br />Feasibility Study have been depleted by this un-funded federal mandate. Only by completing the <br />Feasibility Study can we determine if this reservoir can proceed. The Corps of Engineers is <br />committed to funding their portion of flood control for this project and hopes this project <br />succeeds. We have Federal Government interest in this project as explained below, the <br />Feasibility Study is moving forward, and this grant will allow for its completion. <br /> <br />Geotechnical studies, core drilling, chemistry and geology tests of the proposed reservoir site <br />will cornmence shortly by the Corps of Engineers. The Corps of Engineers will be visiting the <br />site this month to coordinate with property owners the testing necessary. If the Feasibility Study <br />determines that the reservoir can be built as planned, the City and towns anticipate partnering <br />with other entities such as Canon City and/or Pueblo West to contribute funds towards the <br />construction of the reservoir to ease the economic burden of the local residents. <br /> <br />As the "Analysis of Florence Regional Water System Need for Storage, Exhibit ''F'' reveals, the <br />regional system's need for a full 2250 acre foot of storage will not be required until the system <br />reaches a demand of 4,000 acre feet. The Engineering Company's "Master Plan Update for the <br />Florence Regional Water System" dated May 22,2002 postulates a growth figure of 3,878 acre <br />feet, with a population of 18,663 at 2040 pertinent portion attached hereto as Exhibit "L". These <br />two studies lead us to believe that we can offer storage space to other entities in return for <br />monetary contributions to the cost of the reservoir. <br /> <br />Pueblo West has informally indicated that should the Feasibility Study conclude favorably, they <br />are willing to participate economically in this project in return for the authority to store Pueblo <br />West storage rights in the reservoir. <br />