LINE PROJECT FAQ

WATER LINE PROJECT UPDATE AS OF 6/1/2023

We the board, after long consideration, have decided at this time that the line project should be put off to a later date.

The Line Project was to replace all 3+ miles of our water lines and isolation valves that run throughout the community. This would have allowed us a more robust system, removal of all galvanized lines as well as providing a solution to eliminate or significantly reduce line breaks. Estimated cost was around $1.5M

Many factors were considered regarding this decision. The primary reason is our community is not considered "disenfranchised" by those agencies who provide grants ie., USDA, WIFA, ADEQ, ACC. Thus, any monies needed to complete this project, as of now, would come from a loan. Note that a loan can be applied for at anytime moving forward. In order to complete this project at today's interest rates, it would be a cost of roughly $75 per patron for 30 years.

In the end, we have decided to move forward with a rate increase to keep the water company alive and pumping. We are being told that the ACC (Arizona Corporation Commission) will provide us an answer to our proposed rate increase by the end of 2023. Unfortunately, due to the lack of rate increases over the decades, inflation and other factors, the rate increase had to take presidence. At the very least, we need to keep delivering clean water to our patrons with the infrastructure we have.

In the meantime, we will do out best to continue fixing the line breaks that occur as quickly as possible. We appreciate your patience and understanding as these repairs occur and are completed.

We do have a few other projects that are being completed this summer to assist us in shoring up our operations in hopes to elevate the issues we had in our 2023 winter. We will keep you updated as we move forward. Thank you. Your BCWC Board

Inlet from Stream/Water Source

Pump House/Purification

Holding/Distribution Tanks

Community Line Map

Above is the process of how you receive your water.

We pump from our creek through our intake. The water arrives to the pump house and gets filtered. Once the water is thoroughly treated it is then pumped to our storage tanks. The water is then gravity fed and delivered to your home through our community buried water lines.

SECTION OF BONITA CREEK WATER LINE

Exterior Galvanized Pipe

Interior Galvanized Pipe

Above is a piece of our actual 60+ year old 2" galvanized water line. Galvanized lines however are not the quality of standard any longer and haven't been for decades. Galvanized lines, over long periods of time, have shown they can be harmful.

The interior photo is good news from the standpoint that it shows the pipe is in good condition. That is a testament to how good our water is. There is virtually no corrosion on the interior.

However, at a closer look to the exterior of the pipe, we see significant corrosion. This corrosion from the galvanized piping is seeping into the ground water and over time will continue to weaken our pipe infrastructure.

WHY DO WE NEED THIS PROJECT?

Exposed Lines

How old is our system?

Can we continue to fix leaks and bandage the lines?

Short answer, yes. That's an option. Personally, I don't believe a viable one for either the short run or long run.

We have spoken with the water operators that are and have worked on our system for decades. Our system is 60+ years old and leaks are becoming for prominent. Water lines are also becoming more and more exposed due to weather and vehicle travel. (see photos)

We are a volunteer community. Which means if a line breaks due to freezing in the dead of winter, we will need to call on you when it's 20 degrees and snowing to find the leak and repair it. Regardless how long it takes to make that repair.

As another added benefit to this project, we will be adding tracer tape on the pipe witch will make it very easy to find should a leak occur. Currently our system does not have that feature and it is very difficult to locate Leaks when buried in snow.

Are we in danger from the type of lines we have?

Currently, no. However, our community is predominately made up of galvanized lines. There is a nation wide effort to have these lines removed from all water systems. This is partially why we are getting grant money.

We have our system tested monthly and have always been below the legal limits for substances found in surface water. However, we are now beginning to show small traces of lead. The water testing company we have hired, DHC, stresses that we are not in any danger. Although this is an area that I believe isn't something we as a community want to challenge and hope it gets better. To know more about DHC and testing standards please click here.

How will this project effect our community roads?

The county has always graded our roads. This was an agreement that was made between the county and the original owner of Bonita Creek back in the day. You can read about it here. BC HISTORY

Currently, the county stopped grading our roads about a year ago as many of our water lines are located in the ditches on the side of the road and they do not want the liability of catching a line and it breaking.

Here is the information provided to us by Mr. Steve Sanders of the Gila County Public Works Division, "Due to shallow depth of waterlines in roadside drainage ditches and within the roadway prism the County can only perform limited maintenance on the roads in the subdivision. If and when the waterlines are relocated to a satisfactory depth the County will then be able to properly maintain the roads in the subdivision. Until that time maintenance will be limited."

Our lines have become more shallow over the years due to deterioration from rains, snow and vehicle travel. (see photos) These are some examples of current exposed lines. There are others throughout the community as well. We have had to continue bandaging these lines for decades at a significant cost to the water company to prevent freezing. Freezing is arguably the worst thing that can happen to a water systems lines.

This project will bring all the lines to the center of the road, as well as bury them 36" which is county code. This will prevent any of the lines from freezing as well as secure the county to continue grading our roads throughout the year.

Why should we replace ALL the lines in the community at once?

Installing New 4" lines that will connect to existing 60 year old 2" lines will create undue stress on the system creating a situation that may make these remaining lines more susceptible to breaks.

Most in the construction water industry agree with this and add that we would most likely be setting ourselves up for far worse issues.

Grant funding is also an issue. Currently the grant money is available and we are doing all we can to secure it. Nobody can predict if the grant money will be available 3, 5, 10 years down the road.

Are there any other components of our water system that need to be updated?

Yes. Our pump house plumbing, pumps and components were just replaced in 2021 and the pump house is now fully automated. This was a huge undertaking and now provides our water operators with more ease of use to maintain the system as well as being alerted should the system need to be shut down.

Outside of our water line infrastructure project, the last two pieces that need to be replaced are our Intake and Sand Filter.

We have approval from both ADWR and ADEQ to move forward with replacing these components. Both of these are necessary, however our Sand Filter is currently the more critical piece.

We have chosen our filter that will provide us another 60+ years of filtration as well as provide us longer LT2 filter use. This new sand filter will save us money in the long run.

We have also requested ADEQ to assist us in a $10k grant to go toward the sand filter. We will know in October, 2022 if that is approved.

Ultimately, both our intake and our sand filter costs will be submitted to ADEQ and ACC as a part of our overall water line project.

PROJECT SCOPE

New 4" C900 Pipe

New 4" Valves

Approximately how long will the project take to complete?

What materials are being used to improve our system?

We are moving to a state of the art C900 PVC pipe (see photos) that does not require glue or clamps. This line will also be 4" which will allow for community expandability without losing water pressure.

The valves we will using are 4" cast iron burial grade valves (see photo). All valves will be replaced with an additional 5 valves installed to assist with better community isolation should a repair need to be completed.

We will also be looping the system from Antelope Trail to Rocking Horse Bend and from Rocking Horse Bend to Myrtle Point. This will provide the system with better flow.

How will my water meter connection be effected?

As the project takes shape, only those that are currently on the water system will have their meter re-connected to the new lines. All other existing water meters that are inactive will need to re-connect when they would like to become an active part of the water company.

Current water patrons, at the time the project begins, will have all materials included to re-connect your active water meter to the new line.

HOWEVER, the owner will need to install a water regulator on the main line going into their home to reduce the water pressure to an acceptable level for your homes pipes. Average residential water pressures are between 40-80 PSI. We recommend a PSI no higher than 75 for the longevity of your homes plumbing. Ultimately, your water regulator can be adjusted to your liking.

How long will these materials last?

During the project, how will my commute to and from my home be effected?

What if a water line connection has to run through my lot line?

The maps that were presented at the meeting and that are found in the meeting hand out were only conceptual. However this would be the best course of action for the water company to take to truly improve the water line system.

We are currently working to make contact with these property owners who are effected in hopes to better explain why these connections are needed.

This will be at no cost to you. This will be a part of the overall line project. We will make 100% certain that when completed the surface of the trench, once buried, will be secure and neatly graded with as little disturbance to your lot as absolutely possible.

The lots effected are at the end of Hoot Owl to be connected to Coues Deer and at the end of Antelope Trail to be connected to Rocking Horse.

For any project within Bonita Creek that the water company is involved with, we would never make a home owner do something they weren't comfortable with. We will only ever ask and do our best to explain how its for the greater good of the community.

We appreciated your consideration and will honor your decision.

PROJECT FINANCING Bonita Creek has been determined non "disenfranchised".

What is the cost of this project?

If the water company has to take a loan, how will that effect me?

If the water company has a balance owed for the loan then the ACC (Arizona Corporation Commission) will be involved and ultimately make the decision how that subsidy will be broken down and disseminated to the community. The water company has very little to no say in this. According to Britton Baxter with the ACC, "The ACC would make sure that we have rates that are sufficient to be able to pay for the loan."

Our goal from the beginning, once we knew the real cost to this project, was to have each owners additional payment to be no more than $25- $35 per month for the life of the loan, most likely 20 years. This would be in addition to your current water bill.

In order to maintain that amount, the loan can't be more than $275,000 at 6% for 20 years. That puts the water companies loan at $2,000 per month. With a current 62 water patrons that is $32 per month.

Thus, with our current forgiveness of 40%, we need a minimum additional $565,000 in forgiveness. I believe we will get there.

Will our water bill be effected as people move out or move into the community?

The ACC as previously mentioned will be the agency that determines if the loan will be approved or denied. If approved, they will determine how the loan will be disbursed between home owners.

Unfortunately, I was told by our ACC representative that regardless if new people move into or out of our community the subsidy amount will not change. Our Treasurer (Derek Olsen) and myself will be discussing further with the ACC if there might be a workaround possibly annually, bi-annually, etc., to help offset those added or deducted costs among all water patrons.

If there is a loan balance that must be paid, can we refinance the balance at a better interest rate?

According to WIFA, no. They do not refinance their loans. Here is an email from Mr. Scott Connelly their Finance Director, from WIFA, "We do not refinance our own debt unless it is included as part of an additional project."

Currently if we were to take their loan today it would be at roughly 6% interest rate for the term of the loan.

If there is good news here, that would be the fact that if the total project comes in under budget we can give that money back to WIFA and won't be charged for those unused funds.

Will there be a community vote on this project?

YES! And it will be a blind vote. Regardless if the project has a loan tied to it or if its in fact 100% forgiven, there will be a blind vote as to whether we move forward or not.

The board and I put our volunteer positions in the highest regard. Personally, for me, transparency was the only way I was willing to take on this role. I know my other board members feel the same.

Hoping to bring the community closer together was not a goal, although we had hoped by putting in the hard work and showing the community what we had to offer, that it might.

Our focus is for both our patrons and financial health of our water company and we will continue to work for the community and won't stop until we see these projects through.

What if I don't want to take part in the line project?

As the board, we are certainly doing our best to provide the best information we can so everyone can make a good informed decision.

We will never ask you to do something you're not comfortable with. Our intentions are only for the good of the community given the information provided by those who have monitored our system for the better part of a decade.

In the end, if approved, it will be the ACC (Arizona Corporation Commission) who oversees any and all utility subsidies to be handed down as an added expense to a utility customer. It will be their discretion how to handle those cases.

According to Mr. Britton Baxter with the ACC, "If the customers want water service they will need to pay for it, so you would be able to disconnect them according to your ACC Commission approved tariffs."

Truly for this to work, pending the overall cost is reasonable, it will take all of us as water patrons to see this through. Again we are hoping to get the entire community relined at no cost or worst case scenario of around an additional $25-$35 per month per patron for the life of the loan which will be 20 years.

Remember, we live in a remote area of the forest and are blessed to have water and the system we do, not to mention those who run it. Keep in mind, the value of your home is significantly based on whether or not you have water available to you. If not, this will need to be disclosed to any future buyer should you try and sell it.

Our community is one of the most fortunate in the area for both water and those willing to volunteer and manage it. We are in a position to strengthen our community and maintain a vital resource for decades to come. If we can, let's take advantage of it.

OTHER CONCERNS/QUESTIONS

Improved Intake

What happens if the Cragin Resevoir drys up and our creek still runs?

We entered into an agreement with SRP (Salt River Project) in 2015. That agreement stipulates that our water comes from the Cragin which is owned by SRP. SRP is granting us a percentage ownership of the Cragin Resevoir. That percentage equates to approximately 13.73 Acre Feet per year. Currently our community's average usage is 3.2 Acre Feet per year.

Should the Cragin dry up and our creek continue to run, Per SRP, "the Cragin is considered to be a long-term water supply. If your question is with regard to a scenario where Cragin goes away permanently, I can’t speculate as to how that would ultimately play out from an enforcement standpoint. However, I’m sure that SRP would be willing to work with the community to find a resolution."

What happens if Bonita Creek stops running?

Per SRP, "Note that our current agreement includes provisions that allow BCWC to drill wells within the BCWC Water Service Area. If BCWC were to pursue this option, we would need to ensure the well(s) are in compliance with the agreement (e.g. that Surface Water or Underground Water does not come from outside the BCWC Water Service Area).

In addition, we would need to notify ADWR of any additional points of diversion. The agreement also allows for BCWC, at no cost to SRP, to physically transport their Stored Water directly from the Delivery Point (i.e. Washington Park) to its Water Customers only under “Emergency Conditions” (Section 11.6).

This could potentially allow for water to be hauled from Washington Park to Bonita Creek Water Customers, but again we would need to confer with each other on this type of plan as stated in the agreement."

Is our water intake secure from rains, snow and debris from clogging it?

Our water intake is also very old. We have reached out to ADWR in hopes to improve it by eliminating large debris entering the intake and jamming it up during storms, snow fall, etc.

Our current diversion structure (water intake) will remain in its current location. Some of the improvements we would like to add are, 1) A check gate (see photo) that would be placed near our intake to help regulate the water we pump when creek is muddy, has high organics, snow season, etc. 2) Add an engineered small concrete/block containment wall that would encompass the check gate and surround 3 sides of our pump intake, so to prevent debris from entering our intake. (see photo) The creek flow would not be disturbed and would continue to flow around the added containment wall and intake as it does today.

What happens to the water company if there is a power outage?

How much water does the water company pump?

Why do we have to conserve water so often?

When storms, snow and monsoons come through the creek it gets very dirty and we are not able to pump water. These ongoing rains, though great for the forest, continue to play havoc with our system. We only require our patrons too conserve during these times. It's just the nature of our water source.

STAGE 2 is our conservation stage. If you see this posted at the firehouse or receive an email regarding this, please conserve until further notice. It's the nature of our water source and we will continue to do all we can to make sure we have water always on hand.

Thank you for your help and understanding when these events happen.