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1997 LEGISLATIVE REPORT
Active Projects
| 65. | PROJECT: | Osage Water Supply | | | | | |
| LEVEL: | II |
| SPONSOR: | Osage Water District |
| LOCATION: | Weston |
| PROGRAM: | New Development |
| | |
| EXISTING LEGISLATION: |
|
Purpose |
Chapter |
Session |
Account |
Appropriation |
Due Date |
|
|
Level II |
10 |
1994 |
I |
Hold |
1996 |
|
|
Level II |
8 |
1995 |
I |
$140,000 |
1996 |
|
PROJECT INFORMATION:
Osage currently purchases water service from Black Hills Power and Light
(BHPL). BHPL owns the source wells, the transmission pipelines, storage
facility and the distribution system. BHPL projects phase-out of their
power generation facility at Osage between 2010 and 2015. Osage wants to
acquire the system from BHPL and rehabilitate the components to bring the
system up to standards. The Level II report identified approximately
$2,000,000 in recommended system improvements which should be made to the
system to insure a long term reliable supply. BHPL and the community have
signed contracts transferring the well and water system to the District
contingent on the District receiving funding to purchase the system and
perform necessary repairs. In 1995, the WWDC funded the stimulation of a
Madison well currently owned by Black Hills. Production was increased
from about 12 gpm to an excess of 300 gpm. In 1996, the District
finalized negotiations with Black Hills Power and Light, submitted
applications for funding from the Farm Loan Board and Rural Utilities
Service, and successfully passed a debt assumption election. The total
project budget is $1,972,000.
RECOMMENDED LEGISLATIVE ACTION:
The Commission recommends that this project be advanced to Level III
construction status in the New Development Program with an appropriation
of $1,205,000: a loan of $200,000 at 4% for 20 years and a grant of
$1,005,000 or 51% of the total budget. The balance of the local share of
project financing will be provided by Farm Loan Board ($136,000 grant),
Rural Utilities Service ($431,000 grant) and Black Hill Power and Light
($200,000 loan).
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