PROJECT INFORMATION:
The WWDC became involved in the Sheridan project because the city was
found by the Environmental Protection Agency (EPA) to be in violation of
the Safe Drinking Water Act. The city delivered untreated water to
about 102 homes on the system's raw water supply lines between the
diversion works on Big Goose Creek and the treatment plant located north
of Sheridan. During the analysis of this problem, other water supply
problems were identified. Sheridan's Twin Lakes supply reservoirs were
in need of rehabilitation, as were other components of the system.
Sheridan was also seeking a supplemental source of supply to meet peak
day demands and provide for future growth. Over 1,000 homes in Little
Goose Valley and over 200 homes in Big Goose are dependent on shallow
wells of poor quality and declining quantity. Both the mediation
process; involving the city, the EPA, and area representatives; and WWDC
studies concluded that the best solution to the raw water delivery
violations was a comprehensive area-wide water supply and treatment
system.
During the 1989 Legislative Session, the Sheridan Area Water Supply
Joint Powers Board (SAWSJPB) requested, the WWDC recommended, and the
legislature approved an appropriation of $15,500,000 for the main frame
of the project, the enlargement of Twin Lakes Reservoir and the major
water transmission facilities. In addition, the SAWSJPB requested and
the legislature approved an appropriation of $6,750,000 from the
Permanent Mineral Trust Fund to serve as a 100% loan for the construction
of a water treatment plant in Big Goose Valley.
In 1989, the Sheridan County voters overwhelmingly approved the capital
facilities tax. In addition, the Big Goose/Soldier Creek Water
District, the Little Goose Water District, and Big Horn Water District
were formed. These districts, along with the previously organized
Woodland Hills Improvement District and the Southeast Water and Sewer
District, began the process of obtaining commitments from rural water
users within their boundaries for the purchase of water. Over 1,075
rural water users committed to the project. The conceptual designs for
the rural pipeline systems were developed based upon the actual numbers
and location of rural water users committed to the project. During the
1990 legislative session, funding was requested and approved for the
transmission pipelines necessary to serve the rural areas.
In 1992, the Level II conceptual designs and cost estimates for the last
project component, a raw water transmission pipeline from the intake
structure on Big Goose Creek to the city's existing water treatment
plant was completed. The pipeline is needed as two existing raw water
pipelines must be abandoned due to deterioration, they were losing
approximately one million gallons of water per day, and a third raw
water pipeline will be converted to a treated water pipeline to deliver
water from the new Big Goose Water Treatment Plant. The proposed
transmission pipeline will consist of a 30-inch diameter pipe and will
be approximately 11.5 miles long. During the 1993 Legislative Session,
the funding was requested and approved for this pipeline, the East Side
Transmission main needed to adequately serve a portion of the service
area, and budget adjustments to the Twin Lakes Enlargement necessary to
accommodate design changes and environmental mitigation. The
construction of the raw water transmission pipeline will be completed by
the spring of 1996.
To date, there have been 20 separate construction projects completed as
part of the Sheridan Area Water Supply Project. These projects include
new pipelines, storage facilities, and a new water treatment plant.
The 404 permitting process for the Twin Lakes Enlargement continues.
The District Engineer for the U.S. Army Corps of Engineers recommended
that the permit be denied due to impacts to 23 acres of wetlands. A
revised Twin Lakes Enlargement with a smaller reservoir and less impact
on wetlands is now being proposed by the sponsor. It is anticipated
that a 404 permit can be obtained by the spring of 1996. The revised
Twin Lakes Enlargement has been designed with construction bids to be
opened this spring. Construction should commence in June, 1996, and be
completed in November, 1997.
RECOMMENDED LEGISLATIVE ACTION:
The Commission recommends that the project appropriation be increased
from $36,556,000 to $37,206,000 or $650,000. The financing plan would
remain a 75% grant and a 25% loan with an interest rate of 4%, a term
of 15 years, and a 5-year deferral of payments.