The WWDC completed a Level I study in 1994 which identified a well site and developed cost
estimates and monthly rates that were 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,that identified the location of a good groundwater
supply. During the Level II process the project service area was reduced to the immediate
Aladdin area, which included 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 included 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 were not eligible for WWDC participation.
The district spent two years investigating funding alternatives, and have since 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 were made to allow sale of
water to the district and to the Department of Transportation from the well. 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 eventually recoup its investment in the well, and the well will be put to
RECOMMENDED LEGISLATIVE ACTION:
No legislative action is required.