May 8, 2008

Town’s water project nears completion

Washtucna Town Council members approved a bond ordinance relating to the town’s water, sewer and solid waste system on April 23.

The ordinance authorized issuing revenue bonds, which the USDA will purchase and provide as a loan to the town. The town will pay back the loan over 40 years.

The estimated total cost for the project is $1,623,000. The USDA will loan the town $110,000 for the water project, which includes replacing about 130 meters.

The town adopted a loan resolution on April 17, 2007, that started the process for the United States Department of Agriculture Rural Development to loan and grant money to the town for acquisition, construction and installation of improvements to the system.

The council awarded the bid to Pegram Construction on April 9 for a bid of $381,108.12.

During that same meeting, the council obligated $10,000 from a CD previously allocated for water/sewer projects to the water project.

Last year, the town received word that its U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) application for funds to reline the lagoons and cleaning/deepening the lagoons was approved.

But the town wasn’t ready for that portion of the project at that time and fell behind schedule.

In June 2007, the town raised rates to qualify for the USDA funding.

Last year, USDA Rural Development provided $345,000 from a grant for the water project.

CDBG, Washington State Public Works Trust Fund and the town anteed up the remaining $1,153,000.

“When we get these two projects done this year, our system should be in good shape,” Mayor Syd Sullivan said.