The Town of Lusk's water supply system is supplied by five wells which
are over 40 years old. Water is conveyed to the town through a pipeline
with lead joints to their storage tanks. The town is having some
difficulty meeting the EPA safe drinking water requirements.
The town has a current population of 1504, and serve 815 taps through
their municipal water system. They are presently able to meet existing
demands, however, anticipated growth may exceed present supplies.
The Level II study conducted in 1995 involved construction of a
successful well, and preparation of conceptual designs and cost
estimates for needed system improvements. The total cost of the
recommended improvements, including engineering and contingencies, is
estimated at $1,990,000. This includes the Level II well costs
($90,000), modifications and additions to their system to incorporate
the new well ($296,000), a new storage tank and improvements to their
existing tank ($340,475), and additions to their transmission system
The WWDC eligible portions of the project consist of the Level II well
construction, the modifications and additions to their system to
incorporate the new well, and the new storage tank and improvements to
their existing tank. The first two items are necessary to put the new
well into service, and should be funded this biennium. The new tank and
the work on their existing storage is not an immediate concern, and
should be postponed until the next biennium or funded elsewhere.
RECOMMENDED LEGISLATIVE ACTION:
The Commission recommends that the project be advanced to Level III
status in the New Development Program with an appropriation of $420,000.
The financing plan includes a 67% grant and a 33% loan (4%, 20 years).
The sponsor will be required to reimburse the WWDC for 33% of the Level
II well construction costs ($30,000, 4%, 20 years).