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Board directs staff to continue Lone Pine water-main design, pursue USDA loan and begin Prop 218 process
Summary
Facing an upcoming 2028 street repaving schedule, supervisors approved continuing design work for Lone Pine water-main replacements, authorized moving to a not-to-exceed $361,361 design contract, and directed staff to pursue a USDA Rural Development loan (with possible loan forgiveness) and a Prop 218 rate study to cover debt service.
The Inyo County Board of Supervisors voted May 26 to move forward with design work and funding steps for a major Lone Pine water-main and service lateral replacement project timed to precede a 2028 Lone Pine street-resurfacing project.
Deputy CAO Megan McCammon and public works staff told the board the Lone Pine system has about 8.2 miles of mains, roughly half of which are steel or cast iron that have reached or exceeded typical design life. Staff presented a construction estimate range of about $5.6 million to $7.7 million and said the county has a $1.8 million water-system fund balance.
‘‘If we do not coordinate these two projects successfully, we will end up cutting through fresh-laid pavement to do water repairs,’’ Megan McCammon said, urging the board to authorize continued design so work can be ready before street construction.
The county did not receive a state revolving loan this cycle, staff said, but USDA Rural Development indicated it could move quickly and offer roughly 45% loan forgiveness for qualifying small/rural systems and a low fixed interest rate for the remaining 55% over a term (staff quoted rates around 2.8–3% for a 40-year term). Staff proposed using up to $1 million from the water fund balance and pursuing a Prop 218 rate study (or a surcharge) to ensure debt service can be covered.
Supervisors discussed rate options, timing and risks if a congressional earmark does or does not materialize. After debate, the board removed a self-imposed $50,000 contingency on the existing Lumos design contract, approved increasing the not-to-exceed design authorization to $361,361 so design work can continue, directed staff to pursue the USDA loan, and authorized initiating Prop 218 rate-study work to examine surcharge and base-rate options.
The motion was moved by Supervisor Marshall and seconded by Supervisor Rosier and carried on a recorded voice vote.
What’s next: staff will return with loan documents and a recommended Prop 218 consultant and schedule; the county will continue design to align construction with the 2028 Lone Pine Street project.
Sources: Board meeting presentation and discussion, May 26, 2026 (Megan McCammon; Public Works staff).
