The Clallam County Public Utility District plans to use a $2 million state loan to develop a reliable water supply for the Fairview water system.
The PUD announced that it had been approved for the $2,068,000 loan on Wednesday. The money comes from the Department of Health’s Drinking Water State Revolving Fund.
“This is a rather unique loan because one half of the loan amount will be forgiven upon completion,” PUD General Manager Doug Nass said.
“So, a little over $1 million is essentially grant money.”
The remaining principal will be amortized over 30 years at 1 percent interest, Nass said.
Fairview, one of seven water systems run by the PUD, serves 1,524 water customers in the Agnew, Deer Park, and O’Brien neighborhoods east of Port Angeles.
The system is subject to seasonal water shortages during periods of little rain. Last September, Fairview customers faced a Stage 4 alert because of low water flow in Morse Creek.
The alert called for a mandatory stoppage of all outdoor water use — except in critical or emergency situations — and minimal indoor use.
Also, the well that serves Fairview is too close to the Strait of Juan de Fuca, said PUD spokesman Mike Howe, and
“If we pump it too hard, we risk pulling in salt water into the well,” Howe said.
So the PUD plans to replace that well with up to four new wells, he said.
Another option for supplementing Fairview’s water supply is to use some of the water that the PUD now buys from the city of Port Angeles to mitigate low water flow.
Neither the number of wells nor the complete strategy for Fairview has been set yet, Howe said.
Howe said the PUD wants to drill four wells, but does not yet know if the money available will fund all four.
A contract with the state is expected to be developed by November or December.
The PUD board must approve a districtwide water system plan by Nov. 1.
Construction could begin in the early part of 2011.
Fairview customers get their water from a treatment plant on Morse Creek and from a well near The Bluffs on Gasman Road.
Preliminary plans for the infrastructure will meet 2,038 demands, PUD officials said.
“The awarded funding allows the PUD to move forward with much needed improvements in the Fairview Water System,” Nass said.
“This is great news for PUD customers in this area.”
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Reporter Rob Ollikainen can be reached at 360-417-3537 or at rob.ollikainen@peninsuladailynews.com.