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Board reauthorizes Veil Culinary Water Association project to replace aging tanks, approves long-term loan terms
Summary
The Board reauthorized an 85% cost share (up to $1,076,000) and a 1%—30-year loan for a project to replace two failing tanks with a 500,000-gallon concrete tank in Avail; staff noted residents could see near-term bill impacts and adjusted terms to preserve affordability.
The Board of Water Resources reauthorized a long-delayed tank-replacement project for the Veil (Vail) Culinary Water Association, approving staff’s recommendation to fund up to 85% of the cost, capped at $1,076,000, with repayment at 1% interest over 30 years.
Tom (staff) described the project: the system serves roughly 338 existing connections, relies on springs and a well, and has four tanks in different pressure zones. Two tanks in one pressure zone are deteriorated—one riveted steel tank is leaking at joints and an old brewery tank also shows signs of failure. The proposed work replaces those two tanks with a single 500,000-gallon concrete tank in the same footprint.
Staff explained the 1%—30-year terms reflect affordability guidance: "The board's affordability guidelines state that residents of Veil should pay in the neighborhood of $49 per month for all water. Currently, they're and with this proposed loan, they'll be paying about twice that," staff said. Because the expected combined payment would exceed the guideline, staff recommended the lower interest rate and extended repayment period to reduce annual burden; the board approved the reauthorization on roll call.
A board member asked when construction would start; the applicant said as soon as spring weather permits.
The board’s approval reauthorizes the project after the four-year lapse that triggered reauthorization rules. The loan terms and board commitment allow the association to proceed with design and procurement to replace the two failing tanks.
