REPORT TO SHASTA COUNTY BOARD OF SUPERVISORS

BOARD MEETING DATE:  October  3, 2017
CATEGORY:  Consent - Public Works-9.

SUBJECT:

CSA No. 25-Keswick Water – Water Agency Loan

Supervisorial District No. :  All

DEPARTMENT CONTACT:  Pat Minturn, Public Works Director, (530) 225-5661

STAFF REPORT APPROVED BY:  Pat Minturn, Public Works Director

RECOMMENDATION

On behalf of County Service Area (CSA) No. 25-Keswick Water, accept a loan in the amount of $10,000 from the Water Agency Administration fund to the CSA No. 25-Keswick Water fund.

SUMMARY

A $10,000 loan from the Water Agency is proposed to upgrade water treatment systems.

DISCUSSION

CSA No. 25-Keswick Water (CSA) provides water to 200 customers. Source water is excellent with modern pre-chlorination and filtration systems.  A new water storage tank was recently constructed. This large storage volume combined with diminishing water consumption has lengthened turn-over times for treated water in the system.  Chlorine reactions gradually lead to disinfection byproducts.  Last fall, these concentrations marginally exceeded the Operational Level. PACE Engineering recommended reducing winter storage and converting to post-chlorination (adding Chlorine after the filters instead of before).  The State Division of Drinking Water concurred and directed the CSA to increase flushing and testing until post-chlorination is implemented.  The CSA has not been cited for a violation and the water remains safe to drink.

The total cost to construct the post-chlorination system is estimated to be $10,000.  CSA fund balance is presently $5,000.  Water rates were recently raised so revenues will increase.  Additional costs are being incurred for flushing and enhanced testing in the interim.  On September 12, 2017, the Shasta County Water Agency Board of Directors approved a $10,000 loan to the CSA. The loan would be repaid as soon as fund balance is available and at a minimum in three annual installments beginning this fiscal year.

ALTERNATIVES

The Board may decline to accept the loan.  Treatment improvements will be delayed.  Flushing and enhanced testing will continue.  In lieu of a loan, the CSA could move forward with the improvement subject to approval for the CSA to maintain a negative cash balance position.

OTHER AGENCY INVOLVEMENT

The recommendation has been reviewed by the County Administrative Office.

FINANCING

CSA water rates were recently raised so revenues will increase.  The Water Agency loan will be deposited into the Adopted FY 2017/18 CSA No. 25-Keswick Water fund.  There is no General Fund impact.