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May 25Th , 2021 TO: Town of Rico Board of Trustees FROM

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May 25Th , 2021 TO: Town of Rico Board of Trustees FROM Rico Board of Trustee’s Memorandum Date: May 25th , 2021 TO: Town of Rico Board of Trustees FROM: Kari Distefano, Rico Town Manager SUBJECT: Request for Congressional Spending On Friday afternoon I got an email from John Whitney. He is Senator Bennett’s staff person. The email was soliciting projects for Congressionally Directed Spending consideration for this year’s federal budget. There is a form that needs to be filled out that includes a support letter from the community. The requests are due June 4th, but Mr. Whitney said in his email that the sooner we could submit, the better. I emailed the letter earlier, but I wanted to explain why I chose the sewer project rather than a water project even though according to the infrastructure survey, the community placed a higher priority on water. There are more opportunities for grant funding for water projects. The Colorado Water Conservation Board has funding. The Department of Local Affairs has funding and Rico will be the recipient of some stimulus money that can go toward water projects. The Board can raise water fees at will, but any increase in the sewer fund must go to the voters. There is another reason that I picked sewer instead of water. It is likely the projects will be judged at least in part by how well prepared the community is to implement the projects. We are more prepared to engage in a sewer project than we are in a water project. I have attached a copy of the questions on the application along with my answers for your review. There are also detailed budget questions. Fortunately, the sewer committee did enough work on budget to answer those questions thoroughly. 1 TOWN OF RICO INCORPORATED OCTOBER 11, 1879 2 North Commercial Street Post Office Box 9 Rico, Colorado 81332 Office # 970.967.2861 https://townofrico.colorado.gov/ May 24, 2021 The Office of Senator Michael Bennet 261Russell Senate Office Building Washington DC 20510 Via email Dear Senator Bennett, Please accept this letter as a declaration of community support for the Town of Rico’s Congressionally Directed Spending request for funding for a central sewer system in the Town of Rico’s historic core. Rico is an historic mining community located in southwestern Colorado on the San Juan Scenic Byway midway between Dolores and Telluride. Rico is home to 232 full-time residents according to the Department of Local Affairs (DOLA) 2019 estimate. In addition to the full-time population, approximately 55 homes belong to part-time residents or are used as vacation homes. Since the establishment of the Telluride Ski Area in 1972, Rico has provided affordable housing and opportunities for ownership to resort workers, tradesmen, teachers, healthcare workers and the other middle-income employees that are necessary to functioning communities. Currently the residents and commercial operations make use of septic systems, and in some cases even cesspools for wastewater disposal. While there is broad recognition amongst community members that a central sewer system is desirable, Rico’s tax base is so small that the cost of a central sewer system places an oversized burden on the taxpayers. Funding for a central sewer system in Rico’s commercial core would serve the following benefits to the community as well as the region: 1 • Affordable Housing. The old Rico Townsite was divided into 25’ by 100’ (2,500 square feet) lots. Area needs for septic systems require a minimum of 5000 square feet (two lots). A central sewer system for the town would allow more density and hence more workforce housing. • Vibrant Commercial Core. Since the mining days, Rico has struggled to maintain a vibrant commercial core. This is in part due to the fact that a number of the historic buildings on Rico’s main street, Glasgow Avenue, don’t have adequate space on their lots for updated septic systems. A central sewer system in the commercial core would promote economic growth, which in turn would increase Rico’s sales tax base and help to retain our existing small businesses. • Historic Preservation. There are a number of buildings in Rico’s core that are historic. Three, the Dey Building, the Rico Town Hall and the William Kauffman House are listed on the National Register of Historic Places. There are eight other buildings in the commercial core that were built in the late 1800s and retain their historic nature. Of these buildings, four do not have sanitary facilities and are falling into disrepair because they are not being used. Three others have inadequate wastewater treatment facilities and cannot be used full-time. A central sewer system in the commercial core would provide opportunities for greater use of these delightful old buildings. • Environmental Sustainability. The Dolores River bisects the Rico. Septic systems are a threat to that fragile riparian ecosystem. When sludge build-up reduces the tank and leach field’s capacity or causes it to fail entirely, bacteria and viruses accumulate in the soil, seep into groundwater and run into the river. Constructing a central wastewater system will allow Rico to properly treat waste. The Town of Rico has done a great deal of research and preparation into the need and cost of a central sewer system in the commercial core. In 2018, the Town received a grant from DOLA for a Preliminary Engineering Report (PER) that conformed to the requirements of USDA RUS Bulletin 1780-2, “Preliminary Engineering Reports for the Water and Waste Disposal Program”. This report could easily be updated. In 2019, the Town received another grant from DOLA that funded a wastewater infrastructure economic analysis. A copy of the presentation that was included in that analysis is attached to this letter. In 2020, the Town appointed a sewer committee to examine alternatives to traditional systems in an effort to find a more affordable solution for wastewater treatment in the historic town core. Based on that analysis, we believe that the Town of Rico could construct a Septic Tank Effluent Pump (STEP) system that would serve the historic core for $8,979,221. This system would eventually be expandable to serve the rest of the town, but we believe if Rico were to be able to accomplish this first step, we could construct the remainder of the system with funding that would come from increased prosperity. Thank you for giving us this opportunity to submit a request for Congressionally Directed Spending. Sincerely, Barbara Betts, Rico Town Mayor 2 Town of Rico Wastewater Infrastructure Economic Analysis Presented by RPI consulting & The Town of Rico The Town of Rico is not thriving. We are not even sustaining. § We are concerned about the fiscal condition of our community § We are concerned about the condition of our historic buildings § We are concerned about water quality § We are concerned with the continued reliance of septic systems as regulations get more restrictive shuttered businesses CLOSED CLOSED CLOSED downward trend in Rico’s sales tax revenue Sales Tax $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2014 2015 2016 2017 2018 2019 school closed CLOSED downward trend in Rico’s property tax revenue Property Tax $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2014 2015 2016 2017 2018 2019 Source: Colorado Municipal League rising costs of things needed to keep Rico functioning $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2014 2015 2016 2017 2018 Total Town Expenses § Fuel – up approximately 5% from 2014 § Insurance – up 44% from 2014 § Rico Town Hall maintenance $111,971 since 2014 How would installing a central wastewater treatment system affect prospects for business growth and new households? Methodology § Tracked Rico’s current trajectory § Collected local/regional market indicators § Conducted an onsite business survey § Business & residential development feasibility with & without central sewer § Determined business & residential growth scenarios Reliance on septic systems also known as on-site wastewater treatment systems (OSTS) is problematic. Here’s Why: § Many homeowners do not adequately maintain their systems § Sewage discharges from multiple small lots may mean soil cannot adequately treat wastewater § Poor draining soils, high ground water, proximity to river risk surface water and ground water contamination § Steep slopes, shallow bedrock, rocky soils are other factors that increase the risk of water contamination. § Mine shafts and tailings can “short-circuit” untreated waste water to the surface Septic system for a small cafe Septic system for a residence on 4 town lots 10,000 sq. ft. on 4 town lots 10,000 sq. ft. 2,500 Sq. Ft. Townsite Lot 25’ X 100’ 10 ft Setback Area Remaining for OWTS = 5 ft x 80 ft ft 10 10 ft 10 ft Setback Setback Setback 5,000 Sq. Ft., Two Townsite Lots 50’ X 100’ 10 ft Setback 1,500 sq. ft. Building Area Remaining Footprint for OWTS = 40 ft x 30 ft 10 ft 10 ft Setback Setback 10 ft Setback Supportive Supportive Physical Assets Environment for Quality core public Business infrastructure with Support existing capacity to serve businesses’ efforts to growth improve and grow Buildings, spaces and Support for start-ups development sites Entrepreneurial Marketing to bring that are ready for Ecosystem more customers to businesses to occupy local businesses Placemaking Access to financing, infrastructure mentors, networking Internet and opportunities. telecommunications Human capital – infrastructure residents, employees. The cool factor. Expanded Livelihoods and Self-Sufficiency
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