Baca Grande Water & San completes well 18 repairs with no interruption of service
Secures financing using General Obligation bonds and state funding
By Lisa Cyriacks Board Member
The District completed the scheduled repairs on Well 18 ahead of schedule with no interruption of service to our customers. The project also represents the first phase of upgrading the water supply system for the major part of the subdivision. The replacement pump can pump 243 gallons per minute – an increase of 136 gallons per minute from the previous pump. This enables the District to provide adequate and uninterrupted water for services such as fire protection.
The new system also includes a pump monitoring system that improves monitoring for the chemical supply – namely the chlorine and the anti-corrosion inhibitor. This system will also allow more control over the amount of each chemical that gets fed into the water supply and will be a first step in alleviating the reported spikes in chemicals reported periodically by our customers.
The District has very good water, but it is our aging infrastructure that necessitates the addition of these chemicals to provide safe water. The District is committed to continued monitoring of chemical levels throughout the system to ensure that levels are sufficient to provide protection but do not exceed what is necessary to provide protection. Also, the District is using a food-grade chlorine which is more expensive but much safer for our customers with health concerns.
General Obligation Bonds
The District has been pursuing the sale of the general obligation bonds authorized by the voters in the November election. The current economy has presented some interesting challenges even in the municipal bond market that is considered “low-risk”. By the end of March the Board hopes to have completed the paperwork on a financial package for $2.5 million at a tax-exempt interest rate of 5.25%. The District will have the option to refinance the bonds in 2014 should the market improve.
The primary purposes defined for the funds will be to:
1. Provide the matching funds for the two Department of Local Affairs Energy and Mineral Impact Assistance Program grants (totaling approximately $317,000) – one for the sewer line on East Dream Way and the second for ongoing improvements to the water supply system at Well 18.
2. Connect Casita Park to the SBR plant eliminating the existing sewer lagoon.
3. Fund various wastewater service line installations, repairs and upgrades.
4. Refinance a portion of the existing capital leases.
The source of funds for repayment on the General Obligation bonds is ad valorem property taxes and specific ownership taxes as opposed to increased fees.
Future projects
The District has applied for additional funds through a zero to three percent low-interest loan programs through the Colorado Water Resources and Power Development Authority. The CWRPDA awarded the District a $10,000 grant to support a portion of the planning costs associated with the proposed improvements. The funds will be expended to offset engineering costs and the environmental assessment.
In March the District discovered that it may be eligible to participate in the American Recovery and Reinvestment Act (ARRA). Terms under the program could include 50% principal forgiveness for up to $2 million per project, an extended loan term from 20 years to 30 years, guaranteed zero percent interest rate for entities with Median Household Income below 61%, and forgiveness of administrative fees for the loan.
Anticipated projects to be completed with the funds, if awarded, are: replacement of key sections of water mains and interconnection of water sources for improved efficiency and reliability, additional water storage, completion of a hydraulic model necessary to assess the current system’s design characteristics and properly address pressure and flow issues, and the addition of more automation and use of telemetry to implement more cost effective use of resources.
The Board determined at its strategic planning retreat that asset management is the key component to implementing all other strategies. Much work has been done to link together the roles of the board, management and staff. Our combined efforts have resulted in real investments in the District’s asset base to support the needs of our community. Thank you to the management and staff for all their hard work. Many thanks to our customers for supporting the mil levy increase.
Baca Grande Water and Sanitation District’s mission is to provide high quality, reliable, sustainable water and environmentally responsible treatment of wastewater with a commitment to service excellence for the wellbeing of the community in the most efficient and economical manner. For any updates, or more information, please visit us at www.bacawater.com or call us at 719-256-4310.
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