RMWD considers financing options for pipeline

For the county to construct the San Vicente Road improvements, Ramona Municipal Water District must relocate 19,000 feet of water main that is within the project’s right of way at an estimated cost of $5 million.

To finance the project, the water district says it will have to increase water rates to pay for debt service.

In December, district directors authorized General Manager David Barnum to seek financing options for the pipeline relocation.

Barnum told the Sentinel that in a couple of months he will present those options to the board but the district will not commit to any arrangement unless it is 100 percent sure the San Vicente Road project will be constructed.

Barnum told the water board that RMWD would “borrow only the money we need when we need it.”

The 30-year-old pipeline is the main source of water to the Estates, a 3,250-acre planned community with about 3,500 homes. Barnum said the San Vicente Road pipeline has a maximum lifespan of 50 years.

Related posts:

  1. RMWD to seek financing to relocate pipelines
  2. RMWD awards San Vicente pipeline design to Dudek
  3. RMWD board reviews project agreements
  4. Water district considers natural gas line for pump station in Poway
  5. District considers projects to better handle emergencies

Short URL: http://www.ramonasentinel.com/?p=20348

Posted by Karen Brainard on Jan 11 2013. Filed under Government, News, Ramona. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

3 Comments for “RMWD considers financing options for pipeline”

  1. Mike Loranger

    I am greatly confused by this article for the following reasons:

    1. At the time the pipeline was installed within the county right of way in 1973, the RMWD understood that by state law, there was a requirement that the district would eventually have to pay to relocate its water facilities when the county made road improvements.
    2. The pipe was laid in 1973, making it 40 years old in 2013, not 30 years old, with replacement anticipated in ten years in 2023. Has not some money been already been put aside over time for the 2023 replacement?
    3. As part of the public record, the county gave RMWD directors two alternatives. One was to relocate only portions of the pipeline alignments, at an estimate of $1.3 million. Another was to relocate all the pipeline alignments at approximately $3.85 million.

  2. Mike Loranger

    Continued from above:
    4. At that time, the RMWD staff recommended the more expensive alternative because of the benefits to the district; the water line was 38 years old (2011) and the service life is estimated at 50 years, and because of this the RMWD staff agreed the district would have to replace portions in 10 to 12 years, they would need to duplicate excavation and other costs.
    5. At that time, The RMWD agreed that by partnering with the county, the water district would save millions for such requirements as CEQA (California Environmental Quality Act), traffic control, construction management, bonding, mobilization and insurance.

  3. Mike Loranger

    Continued from above:
    6. What I am am confused about is as the planning for the improvements for the San Vicente Road has been ongoing for 15 years, and the pipe is due for complete replacement in 2023, shouldn't the movement of this pipe have been better anticipated financially speaking?
    7. Finally, on November 15, 2012, Mr. George Foote, a newly elected member of the RMWD wrote an opinion piece for the Ramona Sentinel stating his opposition to the San Vicente Road improvement project, with his title as Division 5 representative at the bottom of the opinion piece. With the timing of these RMWD news articles claiming everyone's rates must go up, could someone from the district explain to me, for the record, whether Mr. Foote's views are his own, or do they represent the views of the RMWD?

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