Article 2 Water Bond information for VDOE Annual Meeting Feb 24, 2018

The Commissioners ask for your yes vote on Article 2- the bond article. The Village water system faces numerous risk factors that if not addressed will result in future high cost emergency actions and disruptions in service. Historical management of the water system assets has focused on incremental improvements. This has been a result of an emphasis of keeping the water bill at level that was non-controversial to the users. Unfortunately, we now have to face significant projects that are essential to future reliable operation.
The projects include:
• Storage tanks- Many of our storage tanks are over 60 years old. If left without projects to repair and line with sealant, they will fail in the future. The total cost of inspection and lining of the tanks is at $200,000.
• PRV and isolation valves- Additions and replacement of pressure reducing valves and isolation valves are essential in responding to leaks in an efficient time. These additions will have an immediate reduction in electric costs.
• Reinach Phase 1- Currently the system is unable to provide service at the state mandated minimum to several zones. The first phase modifies the piping system to permit upgrade to higher water pressure.
• Electrical upgrades- The system has electrical code deficiencies and inadequate electrical grounding. The system has been damaged by electrical storms. Failure to address this deficiency could result in very costly repair costs.
• Muddy Beach Phase 2- The completion of Muddy Beach pump station will result in insuring a reliable second source well. This project will result in providing water in the event of disruption to the first source of water- the DPW well.
• SCADA- All upgrades should be made when the electrical upgrades are made to be most cost effective. Jungfrau, Oak and Muddy Beach have had proper electrical surge protection and SCADA upgrades completed as we updated those pump houses.
• Security Locks- The security of the pump stations is essential. The upgrade to identify any access to the pump station will permit a response to any unauthorized incursion.

The bond permits the undertaking high priority projects while permitting the water bill to continue to be at an acceptable level of approximately $500. The bond recommended is interest only for three years. This is the period during which the projects are underway. Then there is twelve years of loan payments. The bond financing enables the Village to keep the system operating reliably by accomplishing the necessary projects without creating extraordinary increases in the water bill. Several of the projects increase efficiency by reducing electricity usage. Cost savings will be significant. Better control of the pumps is one of these elements.