FOR IMMEDIATE RELEASE
SUBJECT:
PUBLIC SCOPING MEETING REGARDING PLANNED WASTEWATER MANAGEMENT FACILITY AND
CORRESPONDING LOAN AND RATE ADJUSTMENTS
McKinleyville, CA –
McKinleyville Community Services District will hold a Public Scoping Meeting on
Tuesday, March 24, 2015 at Azalea Hall beginning at 6:00pm, regarding the
planned Wastewater Management Facility (WWMF) and rate adjustments to
facilitate financing.
The upgrade of the WWMF will
allow the District to provide wastewater service for the next 20 years. The
cost of the planned Wastewater Management Facility is $17 million. As a result
of the District’s efforts with the California State Water Resource Control
Board, a low interest loan has been secured to fund the facility. The loan is
expected to have a fixed interest rate of only 2 percent. This interest rate is
historically low, and the District is unlikely to secure borrowing at a rate
lower than this.
In 2012, a financial plan was
completed, utilizing the best information available at that time, in order to
develop updated wastewater rates. It was anticipated then, that there would
likely need to be an additional rate increase as the WWMF planning continued.
This year, an updated financial study of the wastewater enterprise’s financial
position was undertaken, based upon updated information, specifically more
complete engineering cost estimates for the facility itself, as well as refined
estimates of new operating costs.
This study was completed in
order to ensure that the wastewater system will be able to responsibly support
the loan, as well as the increased operating costs associated with the upgraded
WWMF. The District retained an independent consultant to review the wastewater
financials and rates. The consultant prepared a long-term financial plan that
includes a series
of wastewater rate
adjustments necessary to support the new facilities costs. While the District
will need to raise rates to support its infrastructure needs, a comparison to
surrounding communities’ rates revealed that McKinleyville will still have
competitive wastewater rates, lower than many of the surrounding districts,
even while proactively addressing a major infrastructure need.
In 2009, MCSD undertook a
Wastewater Facilities Feasibility Study which ultimately identified the need
for a Wastewater Management Facility Upgrade, in order to continue providing
wastewater treatment service to customers, while remaining in compliance with
the NPDES permit requirements.
Throughout the progression of
the Feasibility Study, District Staff worked internally, with consulting
engineers, and with the public to evaluate multiple alternatives, which
resulted in the development of a list of four alternatives for further in-depth
study. The 20 year Draft Facility Plan was presented for public comment in
October 2011, and the updated Plan was presented to the Board in November 2011.
In addition, the District conducted a public workshop to discuss options for
funding the WWMF, and as a result has been working with the California State
Water Resource Control Board to secure a low interest loan for the project.
The American Water Works
Association, in their 2014 State of the Industry Report, concluded that the
“State of Water
and Sewer Infrastructure” is the number one issue facing the water and sewer
industry. Infrastructure around the County is aging and in need of replacement;
the American Society of Civil Engineers recently graded our County’s water and
sewer infrastructure a “D” on the academic A to F scale.
When asked, General Manager
Orsini stated, “I would give MCSD’s infrastructure grade a “B”. We have made
the decision to be proactive and address our infrastructure needs, and our ratepayers
have been supportive in our efforts”. Since 2006, MCSD has been considering
options for needed facilities to ensure its ability to provide wastewater
treatment services to current and future District customers. The issuance of an
updated NPDES discharge permit in 2008, which would place more stringent
requirements on the District related to its discharge of wastewater,
accelerated planning and discussion toward a long-term solution.
The proper treatment of wastewater has become a major priority as more toxins are found in our water supplies.
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