Document text
Loans aimed at ensuring water supply during disasters By Damian Mann Updated: Jun 02, 2022 10:05 AM A A The money will be used to harden facilities against earthquakes, build new reservoirs and improve water quality A $96.8 million federal loan announced this week will help keep taps flowing for Medford Water Commission customers if the area gets jolted by an earthquake. The money will be used to improve water quality, build new water storage reservoirs in east Medford and upgrade the Robert A. Duff Water Treatment Plant in White City so it can continue to operate in case of a disaster or power outage. “The biggest concern is a Cascadia subduction earthquake,” said Brad Taylor, general manager of the water commission, which serves 140,000 residents in the valley. The subduction zone lies off the Oregon coast where two tectonic plates grind against each other, producing devastating earthquakes every 200 to 900 years, according to historical accounts. The last one occurred in 1701. Volcanoes such as Mount St. Helens and Crater Lake are connected to this tectonic zone. Two low-interest loans are part of a federal effort to help local communities withstand an earthquake and will save the water commission $12 million in interest over the 30-year repayment period. One loan is for $27.4 million at 2.1%, and the second is $69.4 million at 3.2%. The water commission wasn’t quite far enough along in an environmental assessment of some of the projects to lump everything into the 2.1% rate loan. Another benefit to the loans is that no principal payments need to be made in the first five years. “Access to reliable clean water and a resilient water infrastructure system is crucial to the health and strength of every family,” said U.S. Sen. Jeff Merkley, D-OR, who wrote the bill that helped create the Water Infrastructure Finance and Infrastructure Act. The federal loans are part of a 10-year plan to invest about $200 million into the Medford area water system, which serves most communities in the valley. As part of the improvements, the program will help better adjust the pH to reduce lead and copper from leaching out of household plumbing. The Duff plant, which treats water from the Rogue River before sending it to customers, is undergoing a capacity increase from 45 million gallons a day to 65 million. A portion of the plant will be seismically hardened with backup generators so it can continue to produce 26 million gallons a day in case of a disaster. This upgrade will be paid through the federal loans. Taylor said the 26 million gallons would be enough to ensure customers have adequate drinking water in case of disaster. Over the next 50 years, the water commission plans to convert the entire Duff plant into a hardened facility to help withstand a natural disaster. There are currently three reservoirs on top of Capital Hill in east Medford with a capacity of 12 million gallons. “That’s really the heart of the system,” Taylor said. The loans will be used to pay for two replacement reservoirs that also will contain 12 million gallons, but the new tanks and lines will be designed to better withstand an earthquake. Taylor said the commission is developing plans to continue to maintain water delivery as the reservoirs are being replaced over the next few years. In addition, a new 8 million gallon tank will be built somewhere near Foothill Road in east Medford, though the water commission is still working on securing a property for that project. In 10 years or more, the water commission plans to build another 8 million gallon reservoir in south Medford to serve that rapidly growing area, though this project is still on the drawing board. Also included in the earthquake hardening rebuild project is improving water transmission lines and pumps. Rates are expected to increase 6% to 8% over the next few years to help cover some of the costs of the rebuilding effort, returning to more normal increases based on inflation after that. In 2024 or 2025, the water commission expects to seek a revenue bond of about $22 million to $25 million. The city of Medford is directly served by the commission, but wholesale customers include White City, Ashland, Central Point, Eagle Point, Jacksonville, Phoenix and Talent. When the commission formed 100 years ago, it installed 30 miles of pipes from Big Butte Springs using a $1 million bond. The springs have historically provided the bulk of water to area residents, but population growth has required additional water from the Rogue River. An ongoing drought, which saw some relief with this year’s spring rains, has resulted in lower flows from the springs, prompting earlier than anticipated draws from the Rogue River. The commission is allowed up to 100 million gallons a day from the Rogue River, though it would have to make additional improvements to the Duff plant to do so. Reach freelance writer Damian Mann at [email protected].