Established as The Skamokawa Eagle in 1891

PUD reviews water system expansion costs

High water may have prevented Wahkiakum PUD commissioners from meeting in Rosburg on November 20, but it did not prevent them from discussing possible expansion of the Western Wahkiakum Water System.

Meeting at the PUD’s Cathlamet headquarters, Manager Dave Tramblie reported to the commissioners on information he’d gathered to assess the potential of expanding the water system. He estimated $50,000 in out-of-pocket costs for materials. For the section of the expansion between Salmon Creek Road and Salme Road, a distance of almost a mile, the labor costs of the project would be borne solely by the water system. Water crew employees and equipment would be around $250 an hour, he said, adding “if we assume the crew would complete 250 feet a day, that’s about 16 days of labor at $2000 a day.”

From Salme Road to the West Deep River Road intersection with SR4, the labor costs could be split between the water and electrical systems because that stretch of electrical cable needs to be replaced, Tramblie explained. Rough numbers for the entire project (minus the cost of electrical cable) including the costs of excavation, labor, truck time and fuel are somewhere around $200,000, he estimated. The utility’s engineering firm predicted that the project would likely cost $450,000 if it went to bid.

Tramblie said a potential customer from the area indicated to him that he would be willing to put $10,000 towards the project, and other potential customers had stated their willingness to put money towards water system expansion.

“If we could find $50,000 in funding and $50,000 from the people that are going to benefit from the system, perhaps the utility could shift labor hours from the maintenance budget to this project,” Tramblie concluded.

Commissioner Bob Jungers reminded the commissioners that the system’s indebtedness is at $370,000 with 312 customers.

“That’s a lot of debt load for a little system already, and expansion would bring more debt with a net negative cash flow. We’d want to pick up 14 or 15 meters in order not to unduly burden the ratepayers on the system with additional debt,” he said.

Tramblie estimated the system would gain only three or four new customers after expansion.

“There may be grant opportunities for us, but I don’t think you’re going to get over half funded that way,” said Commissioner Dennis Reid. Tramblie responded that the utility’s engineering firm indicated that the project was unlikely to be very well received by granting agencies.

Reid thanked Tramblie for gathering information about the project and asked his fellow commissioners to remain on the lookout for possible funding sources.

Deep River resident and potential PUD water customer Pam Anderson attended the meeting to hear the update.

Tramblie updated the commissioners about the status of last month’s Department of Revenue (DOR) audit that determined the utility owes the state $56,000 in underpaid excise taxes. The PUD has received an extension on the November 28 due date and PUD Attorney Tim Hanigan is working on a negotiated settlement, he said.

 

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