RMWD to seek financing to relocate pipelines

Ramona Municipal Water District will need to seek financing sooner than originally planned to pay for its pipeline relocation in the county’s San Vicente Road realignment project.

RMWD’s estimate to relocate the water pipelines is $3.8 million, and the county originally offered to front approximately $1.3 million of that amount with subsequent reimbursement by the water district.

A letter from the county’s Department of Public Works has notified RMWD that the county will not be able to issue the loan because monies from the Road Fund cannot be used to fund utlility relocations.

“We will have to go out and gather financing,” said RMWD General Manager David Barnum.

The county is requiring the pipelines be moved from the boundaries of the road project at the district’s expense by July 1, 2013.

Barnum said the district will probably identify two or three sources of funding and water rates will eventually increase.

“Certainly within the next couple of years…debt service will be reflected in the water rates,” he said.

The San Vicente Road project calls for widening 2.25 miles of San Vicente Road to improve the vertical and horizontal sight distance between Warnock Drive and just east of Wildcat Canyon Road.

Along that section RMWD has pipelines that were installed within the county right of way in 1973. Although that was allowed by state law, there was a requirement that the district would have to pay to relocate its water facilities when the county made road improvements, according to district staff.

—Karen Brainard

Related posts:

  1. County road project to cost water district about $3.8 million
  2. RMWD reschedules rate increase hearing
  3. RMWD to boost water, sewer fees
  4. RMWD solar projects scheduled for end-of-year completion
  5. RMWD moves forward with sewer improvements

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Posted by Staff on Jan 24 2012. Filed under Government, News, Ramona. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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