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 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.
The project will be maintained in state ownership and provisions made to allow sale of water to the
district and to the Department of Transportation. Water will 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.
RECOMMENDED LEGISLATIVE ACTION:
No legislative action is required.