** PLEASE SEE OUR WATER FACILITY PLAN FOR COMPLETE OVERVIEW OF THE ENTIRE WATER SYSTEM AND IT’S INFRASTRUCTURE **
Every three (3) years Idaho Department of Environmental Quality (IDEQ) performs what is called a Sanitary Survey on our water district. During the last survey a number of deficiencies were identified and IDEQ is REQUIRING Bayview Water and Sewer District to make the following repairs to the system in a timely manner. They are willing to work with us to bring the system into compliance but if we are un-willing to make the required repairs we could face fines and penalties. These fines could be as high as $1,000 a day until the system in brought into compliance.
Below is the last Sanitary Survey as well as some correspondence which outlines the corrective actions the District needs to address in the near future. In order to make these repairs the Board is discussing the best funding options and which projects to handle first.
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At a Special Meeting on February 25th, the BWSD Board of Directors passed a resolution to put 2 bond options on the May, 2020 ballot.
The Board action is in response to the Idaho Department of Environmental Quality (IDEQ) requiring the District to come into compliance with a variety of existing deficiencies in the BWSD drinking water system. The full sanitary survey report can be found on the district website. These compliance issues come with a projected cost of 3.4 million dollars. IDEQ has advised the district that they will accept a plan that produces compliance over a 5 year period. The projected costs are estimates by the engineer and the highest priority of the Board is to reduce costs as each phase of the project is addressed.
The state of Idaho also made a statistical reclassification that will result in the District no longer qualifying for the most favorable IDEQ financing. The IDEQ loan available to the BWSD for the mandated repairs and upgrades will change dramatically as of July l, 2020. A May bond election is the last opportunity for the District to secure these favorable financing terms.
The new Board considered the previous opposition to a total rebuild of the system and has chosen a project that will combine rehabbing the existing tank, upgrading system elements and adding new pipe to address all the compliance issues.
It was not the Board’s first choice to propose another bond election so soon.
The cost of financing available for the mandated $3.4 million project now and the increased cost available after July 1, 2020 is so substantial, fiscal responsibility demanded they act now. The principal and interest payments would increase by $7,659.00 per month and pay an additional $91,574.00 in interest over the life of the loan. The estimated payment under the present loan terms per connection is $26.61 and under a loan after July 1st is $42.92, an increase per connection of $16.31! These estimates are based on the current 475 connections and if the
cost of construction is less, these projected increases will be less.
The total project would be done in three phases and the increase in user fees would be phased in over time as construction is completed. The first increase would be $8.00 less, adjusted for the increase put into effect in 2019.
Again, considering the failure of the previous bonds, the Board felt it was necessary to offer a second option for a smaller bond and decided on $2 million. This second option will only finance a portion of the work required by IDEQ and will require that the balance of $1.4 million be financed at increased costs at a later date. The estimated cost per connection for this option would be $31.39, an increase of $4.78 per connection over the cost of passing the $3.4 million project all at once. If the additional $1.4 million bond didn’t pass down the road and the required work could not be completed, IDEQ could begin negotiating a compliance agreement with the District which is a precursor to imposing any penalties for non-compliance. The Board intends to have informational meetings and publish more information as they approach the bond election. This initial notification is to let everyone know what is going on and why.