The Pine Cove Water District (PCWD) Board of Directors, in a 15-minute special meeting last Wednesday, approved a $1,657,330 agenda item as part of outgoing General Manager Jerry Holldber’s 10/20/50-year plan.
John Egan of Engineering Resources of Southern California prepared the final draft of the Preliminary Engineering Report for water systems improvements the district plans to fund through a U.S. Department of Agriculture’s (USDA) Rural Utilities Service loan.
The main improvements are:
• Replace the 420,000-gallon Rocky Point Tank Reservoir No. 1.
• Recoat the interior of Rocky Point Tank Reservoir No. 3 and Highway 243 Tank Reservoir No. 2.
• Refurbish and rehabilitate four wells including a well near Buckhorn Camp “that hasn’t been used in years,” said Holldber.
• Replace the 1,108 water meters with remote-read type meters.
• Purchase a 19-acre parcel that includes three district wells at a cost of $170,000.
The total loan amount also includes $111,570 in contingency costs.
Holldber gave the directors the good news that the interest rate given of 2.125% is actually 1.75% with a loan term over 40 years and an annual payment of $59,450.
However, PCWD does qualify for USDA grant money up to $500,000. “Being realistic, we will not get all of that.,” Holldber said. He said the directors needed to approve the loan request and then he could apply for the grant. Regarding the grant, he said “It’s not a matter of whether but of how much.”
Director Lou Padula asked if the “1.75% is for the entire 40-year loan?”
Holldber said, yes, it’s a fixed rate and not a variable. “I think it’s a prudent thing to do,” regarding the loan.
“2.15 wasn’t bad but 1.75% is stellar,” said Padula. “I agree,” said President Robert Hewitt.
The board voted unanimously to approve the loan.