Small Town News

Citys main water source continues to be a problem

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With summer heat fast approaching, the city council is feeling the pressure of having one of its main water producers off line.

Well No. 5, which produces 1,500 gallons of water a minute for the people of Othello, has been out of service since March 12.

"There is a high demand, we have to see what we can do," council member Ken Caylor said during the city council meeting June 28.

The well was drilled in 1993 and underwent repairs 1998, 2007 and 2010.

"It's continuing to be a problem and increasing in frequency," Larry Julius, an engineer with the city's hired firm, Gray & Osborne, said.

The problem lies about 250 feet below ground surface as the shaft of the well is approximately five inches out of alignment.

"That's one of the major issues why the shaft keeps breaking," Julius said.

He said there may also be geological reasons for the frequent breakage, but wells of this type should last about 20 or 30 years.

"I don't have all the answers, I'll be honest," Julius said.

A brand-new well would cost the city about $1 million. The council has already considered building a new well, No. 9, even prior to the breaking of No. 5. economy, interest rates are low," McLaughlin said.

Once the bonds are sold, buyers will begin to receive payment from Othello in 2016, as the city wants to pay off the city hall building first.

Bond Counsel Cynthia Weed, a partner in the law firm of K& L-Gates, said the payments will continue until 2035.

If the city comes across extra money, the bonds can be paid in 2020, saving them some money in interest.

"It is a full-faith credit obligation and this is as good as you could possibly want," she said.

There are other obligations to the buyers the city has to follow through on, Weed said.

"There have to be annual financial statements so the buyers of the bonds can see how the city is doing," she said.

If the interest rates were to drop, the council could refinance in 2020.

"It is possible, but not likely, that the rates will be substantially lower," Weed said.



Copyright 2010 The Othello Outlook, Othello, Washington. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2011 The Othello Outlook Othello, Washington. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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