The WWDC completed a Level I study in 1994 which identified a well site
and developed cost estimates which yield monthly rates acceptable to
district members. The water district requested that WWDC proceed to
Level II to construct a Madison test well and develop conceptual level
plans for storage and transmission components.
A Level II study was completed in 1995 wherein a good groundwater supply
was located. During the Level II process, the project service area was
reduced to only the immediate Aladdin area, which includes fourteen (14)
taps. Conceptual level designs and cost estimates were completed for
the downsized system. The total Level III project cost was estimated at
$335,000, which includes the Level II well costs ($80,000), the
transmission system ($235,000), and the distribution and chlorination
systems ($20,000). The distribution and chlorination systems are not
eligible for WWDC participation.
The district spent two years investigating financing alternatives, and
have requested only that the WWDC sell them the well with a 60/40 grant
loan split. The interest rate will be 7.25% with a term of 10 years.
They plan to obtain the balance of their funding from other sources.
RECOMMENDED LEGISLATIVE ACTION:
The WWDC recommends the project be maintained in state ownership and
provisions made to allow sale of water to the district and to the
Department of Transportation. Water could be sold to the district for
$1.20 per 1000 gallons and to the Department of Transportation for
$.50 per 1000 gallons. No appropriation is necessary because the well
is already in place. This authorization will allow the state to recoup
its investment in the well, and the well will be put to beneficial use.