OVERDALE CONSOLIDATION PROJECT
UPDATE - May 10, 2013

The Sammamish Plateau Water & Sewer District and Overdale Water Association have been collaborating over the past year to consolidate the Overdale water system into the District's system. To that end, the District and Overdale developed an Agreement for Purchase and Sale of Water System Property of the Overdale Water Association, which was executed in February 2012. The Agreement defined the scope of the Overdale Consolidation Project including both administrative requirements and construction activities. The Agreement was amended on December 4, 2012 to extend the time to complete the project.

The District obtained approval for a State Revolving Fund (SRF) low interest loan, including 50 percent forgiveness for eligible portions of the consolidation project. However, to obtain the SRF funds there are additional administrative requirements, which are explained further in the following sections. In brief, the funds required additional studies and delayed moving the project to the construction phase. As detailed in the Additional Funding section below, the District is nearing the completion of the additional study requirements.

The City of Issaquah is continuing to pursue the assumption of the portion of the District within the City limits, including Overdale. This action has the potential to impact the financing that the District has proposed for connection charges associated with receiving water service from the District. District and Overdale representatives are continuing to try and work with the City representatives to reach an understanding regarding the financing and ultimate disposition of the connection charges, in the event of assumption. A draft Agreement regarding the connection charges was provided to the City in early April 2013, and is currently under review.

Information on these and other aspects of the Overdale Consolidation Project is contained in the following sections:

The current overall schedule for the Overdale Project can be seen here.

Key dates include:

    Overdale Water Association Meeting on May 22, 2013

    District SEPA (State Environmental Policy Act) Checklist process - February 20, 2013 - April 26, 2013

    Cultural Resource Assessment Activities
    Cultural Resource Assessment Report completed on February 28, 2013
    DOH concurrence letter regarding Cultural Report - April 24, 2013
    Advertise Cultural review and public comment period - through May 2013

 

MEETINGS

MARCH 26, 2012 INFORMATION MEETING

On March 26, 2012, the Overdale Water Association invited the Sammamish Plateau Water and Sewer District (District) to discuss the Utility Local Improvement District (ULID) process for consolidating the Overdale water system with the District's water system. The handouts provided and questions raised at the Information Meeting are provided below.

APRIL 23, 2012 ULID 30 FORMATION HEARING & May 7, 2012 BOARD MEETING

The Overdale ULID 30 Formation Hearing was held on April 23, 2012. The Formation Hearing is one of the early steps in the ULID Process, described in the following.

The District Board of Commissioners heard from several property owners that attended the meeting and discussed questions regarding the ULID process, as well as some more general information regarding the Overdale project. In addition to input received at the April 23rd Hearing, the Board received one letter of protest requesting the Board not form ULID 30.

At their May 7, 2012 meeting the District Board considered the input received and determined to form ULID 30, by adoption of Resolution No. 4153. This means that District staff will now proceed to complete the design of improvements to integrate and consolidate the Overdale Water System into the District's water system.

Additional information on the ULID process is provided below.

 

PROPOSED CITY OF ISSAQUAH ASSUMPTION OF SAMMAMISH PLATEAU WATER & SEWER DISTRICT SERVICE AREA

The current City of Issaquah proposal to assume the portion of the Sammamish Plateau Water and Sewer District located within the City of Issaquah limits was brought up at the April 23rd Formation Hearing. Since the Overdale Park community is located within the City of Issaquah, the water system would be subject to any assumption of service by the City of Issaquah.

While the potential and interest of the City of Issaquah eventually providing water and sewer service to the areas within the city limits is not new, the current proposal is new. The City of Issaquah website recently added information about this project, "City to Study Local Water Systems." The City's web information indicates the current project is a study, and it states:

    "Meanwhile, SPWSD is currently working on plans to assess one neighborhood in Issaquah, called Overdale, for certain improvements and connection charges. The City's study should have no influence on this assessment process. Even if Issaquah were to someday assume utility service in Overdale, property owners would still be responsible to pay the assessment."

The Scope of Work for the "Study" approved by the Issaquah City Council and Mayor demonstrates that the project goes beyond the study and assumes the assumption will occur. The final Scope of Work tasks include:

  • Prepare Agenda Bills for the Issaquah City Council Action
  • Prepare a final report of BRB (Boundary Review Board) consideration and to attend a public hearing at the BRB. (A Boundary Review Board report would only be prepared if an assumption were being pursued.)

The City may have met with neighborhood communities, such as Overdale, but the City has not met with the District to discuss the scope of this current City project. The District was only made aware of this current proposal after the City hired a consultant to perform this $300,000 study.

Lloyd Warren, District Board member, provided the District perspective on the assumption issue to the Issaquah City Council at their May 7, 2012 meeting. His remarks are in the following:

mms://media.ci.issaquah.wa.us/video/Council5-7-12.wmv at 6:39 minutes

  • The ULID 30 Assessment has been designed to include two parts:
    • Overdale Consolidation Project Costs - specifically associated with the Overdale service area.
    • District Connection Charges - associated with facilities that provide service to the entire District, an area much larger than that included in the Issaquah "Study" area.

With respect to the Overdale Consolidation project and associated assessments, the District has specific concerns which may not matter to the City of Issaquah, specifically, financing the District connection charges through the ULID 30 Assessments.

  • Per the agreement between Overdale Water Association and the District, each property owner has the option to pay the Connection Charges up front, or to have the Connection Charges included with the Project Cost in the ULID 30 Assessment.
    • If the City of Issaquah takes over water and sewer service in the Overdale area, the City will also receive any ULID 30 Assessment payments made after the takeover.
    • If the District Connection Charges are included in those Assessment payments, the City of Issaquah could also receive the District Connection Charge payments.
  • The potential that the District would not receive the $1,320,000 in connection charges which the District agreed to finance on behalf of Overdale is of concern to the District.
  • As of September 20, 2012, District and Overdale are attempting to obtain agreement from the City of Issaquah that the District Connection Charges paid by the property owners in ULID 30 would continue to go to the District.

 

CONSOLIDATION OF THE OVERDALE WATER ASSOCIATION WATER SERVICE TO THE SAMMAMISH PLATEAU WATER & SEWER DISTRICT

Why did the Overdale Water Association ("Overdale") make the request to receive direct water service from the Sammamish Plateau Water and Sewer District ("District")?
Overdale had concerns about elevated levels of arsenic in one of its supply wells, and requested assistance from the District in 2005. The District has been supplying water through an emergency intertie to Overdale since mid-2005.

After reviewing several alternatives to address the water quality concern, Overdale determined that the transfer of water service from Overdale to the District appeared to be the best course of action.

What has to happen for the transfer to take place?
There are several steps that need to occur to consolidation the water system and provision of service from Overdale to the District (☒ indicates the step is complete):

 

ANNEXATION

Why was the Overdale area annexed to the District?
In the fall of 2009, property owners within the Overdale Service Area requested that the District consider providing direct water service to the Overdale's water customers. One of the first requirements was to annex Overdale Park into the District's corporate boundary.

The Overdale Annexation included Overdale Park and additional single family and multifamily properties to the south and west of Overdale Park as shown on the annexation map here.

What is the status of the Overdale Annexation?
The Overdale Area Annexation was formally completed on May 16, 2011 following approval by the King County Boundary Review Board, King County Council and Sammamish Plateau Water & Sewer District.

What is the cost of the Overdale Annexation?
The cost of the Overdale Area Annexation, as adopted by the District Board Resolution No. 4025 is $20.46 for most existing or potential housing units based on current zoning or development.

 

WATER COMPREHENSIVE PLAN AMENDMENT

Why is an Amendment to the Water Comprehensive Plan required?
Water Comprehensive Plans are required by both the Washington State Department of Health and King County, and describe how a water system is governed, operated and maintained, and how it plans to continue to provide water service into the future. Expansion of the District's service area to include Overdale Park required an Amendment to the District's Water Comprehensive Plan. The Amendment only addressed changes to the District system due to the inclusion of the Overdale service area.

What is the status of the Amendment to the Water Comprehensive Plan?
The 2012 Amendment to the 2010 Water Comprehensive Plan was adopted by the District Board of Commissioners on February 13, 2012 by Resolution 4133, has been approved by the Washington State Department of Health as of February 29, 2012, and was approved by the King County Council on March 23, 2012. The District Board approved Final Adoption of the 2012 Amendment by Resolution 4143 on April 2, 2012.

 

DISTRICT-OVERDALE AGREEMENT FOR CONSOLIDATION OF THE WATER SYSTEM

What is the purpose of an Agreement between the District and Overdale?
The Agreement is a Purchase and Sale Agreement that provides the terms and schedule for consolidation of the water system and water customers from Overdale to the District.

What does the Agreement cover?

  • Identifies documents and facilities covered by the Agreement.
  • Provides a mechanism for transfer of documents and facilities. Most documents will be executed by the Overdale Water Board, EXCEPT that each customer must sign a Water Service Application for each water meter for the District to be able to provide water service to the customer.
  • Provides a mechanism for paying for the consolidation of the water system.
  • Sets time requirements for consolidation actions.
  • Identifies when customers would become District customers.

What schedule is set by the Agreement?
The Agreement has three segments:

1. Following execution of the Agreement - March to April 2012

    • Initial document provision and review - Completed

2. Following initial document review - April 2012 to April 2013 Extended to October 2013

    • Provide documents to consolidate Overdale water system facilities to the District - Completed

      • All of the steps from this point forward have been delayed. The order and requirements are the same, but the timing has changed. The updated dates reflect an assumed six month delay. The delay could be significantly longer, depending on the Cultural Assessment and Historic Review.

    • Obtain approvals and permits from required agencies.
    • Each Overdale Water Customer must complete a District Water Application
    • Complete final design and bid the construction project
    • Complete the ULID Process

3. Closing - April to May 2013 Extended to October 2013 to November 2013

    • District takes over operation of the Overdale water system
    • Overdale Customers become District customers
    • Construction must start within 60 days of closing (and is expected to last 3-4 months)
    • Note that the Overdale Water Association will continue to exist after closing as it disposes of its remaining assets that will not be transferred to the District, including real property and the water rights associated with its wells.

Once I have become a District customer, how will I be billed for water service?
The District bills its customers every two months. Bills include a fixed base charge plus a consumption charge for water used. You can learn more about the District's water rates here.

 

UTILITY LOCAL IMPROVEMENT DISTRICT (ULID)

What is a ULID?
A ULID is a method of financing municipal projects paid for by local property owners. The ULID process is established by the Revised Code of Washington Code (RCW 57.16), and includes several prescribed steps.

When a property is included in a ULID, each property gets assessed a specific share of a project, which can be paid off in annual payments, normally over 15 years. There is also an opportunity to pay off the assessment as a lump sum.

What are the steps in the ULID process?

The ULID process includes several steps, and takes several months to complete:

    ☒ District staff develops a Preliminary Assessment Roll based on estimated complete project costs.

    ☒ Resolution of Intent to form a ULID and setting the Formation Hearing Date

      ☒ Notices of Formation Hearing published in the Seattle Times

      ☒ Notices of Formation Hearing mailed by certified mail to each property owner, including the property's estimated assessment amount. Note that the District obtains property owner information from the King County Assessor's Office for mailing purposes, so property owners should verify that their information is correct.

    ☒ Formation Hearing Held - scheduled for April 23, 2012 at 7 PM - Opportunity to support or protest formation. Oral testimony is welcomed, but formal protests must be provided in writing.

    ☒ District Board of Commissioners considers results of Formation Hearing

      ☐If 40% of the area included provided written protests, the process stops.

    ☒ If less than 40% protest, District Board of Commissioners Approves a Resolution of Formation of ULID

      ☒ Direct District staff to proceed to final design and project bid.

      ☐ Complete design and obtain bids for construction project.

      ☐ District staff revises the total project costs including bid results in place of estimated design and construction costs.

    ☐ District staff develops a Final Assessment Roll based on revised complete project costs.

    ☐ Resolution setting the Final Assessment Hearing Date

      ☐ Notices of Final Assessment Hearing published in the Seattle Times.

      ☐ Notices of Final Assessment Hearing mailed to each property owner, including the property's final assessment amount.

    ☐ Final Assessment Hearing Held (estimated to be October 8, 2012) - Opportunity to support or protest final assessment rate. Oral testimony is welcomed, but formal protests must be provided in writing.

    ☐ District Board of Commissioners considers results of Final Assessment Hearing.

    ☐ Resolution adopting the ULID Final Assessment Roll.

      ☐ District staff files Final Assessment Roll with King County for collection from the property owners over a period of 15 years.

What is the schedule for the ULID Process?

The ULID process currently was initiated in April 2012.

  • The Overdale Project, ULID 30, Formation Hearing was held on April 23, 2012. Public testimony and discussion was received at the meeting.
  • Written protests of the ULID 30 Formation were received until May 3, 2012. If protests representing more than 40 percent of the area within the ULID were received the ULID process would have been stopped. However, only 1 protest was received, representing less than 1 percent of the area within the ULID.
  • The District Board formed ULID 30, by Resolution No. 4153, on May 7, 2012. This means that the final design and bidding the project will be undertaken.

With the currently proposed schedule, the Final Assessment Roll would be filed near the middle of 2013.

What costs will the ULID include?
The ULID may contain costs of all parts of the process to consolidate water service from Overdale Water Association to the District including:

  • Project Costs
    • Administration and Study Costs - includes water audit, legal costs, purchase and sale agreement, comprehensive plan amendment, rehabilitation and repair funding
    • Design, Permitting and Construction Costs - includes the Water System Integration Improvements discussed below.
  • Connection Charges

The interest rates established for the Overdale ULID will consider the source of the funds for the Project Costs and for the Connection Charges. These each have different funding sources. The Project Cost interest rate will be in the range of 1% to 3%. The Connection Charges interest rate will likely be in the range of 4% to 6% per year.

Per the District-Overdale Agreement, the property owner may elect to include the General Facility and Regional Capital Facility connection charges in the ULID assessment, or they may pay those connection charges early, and only be assessed for the cost of the ULID. . As noted in the Proposed City of Issaquah Assumption section above, whether the Connection Charges will be allowed for inclusion in the assessment is currently being discussed.

How are the costs of the Overdale ULID going to be divided?
The Project Costs will most likely be split evenly between the 153 properties included in the Overdale ULID. Most of the properties are very similar with one single-family residence, or have the ability to build a single family residence.

The Connection Charges include three components:

  • General Facility Charges
  • Regional Capital Facility Charges
  • Annexation Charges

The General Facility and Regional Capital Facility Charges will be based on the size and number of meters associated with each property. If your property has multiple meters your connection charges will be larger.

The Annexation Charges will be based on the charge adopted by the District during the annexation process. Most properties in the Overdale ULID were included in the Overdale Annexation. A few properties were included in prior annexations, and will be charged the rate set with those prior annexations.

What is my estimated assessment at this time?
The figures provided here are estimates as of March 1, 2012:

Project Cost:

        Project Cost Estimate = $1,100,000.00
        Number of Properties =                   153
        Project Cost per Property = $ 7,189.54

Connection Charges for most properties: one 3/4-inch meter in the Overdale Annexation:

        Annexation Charge =                               $      20.46
        General Facility Charge =                        $ 2,320.80
        Regional Facility Connection Charge =   $ 6,115.07
        Connection Charges for most properties $ 8,456.33

Note that the General Facility Charge is 56% of the District's current General Facility Charge of $4,071.00 plus $74.62 excise tax which is charged to all new customers of the District. In the original project report, it was envisioned that Overdale's water supply facilities would be transferred to the District, which represents an average value of 44% of the general facilities required to supply water to the Overdale customers. Although now Overdale's water supply is not going to be included in the transfer, the District's Board of Commissioners allowed the initially-offered reduction in the General Facility Charge to remain.

ULID Assessment for most properties:

        Project Cost=                  $ 7,189.54
        Connection Charges       $ 8,456.33
        Total ULID Assessment  $15,645.87 <-- ESTIMATE AS OF 3/1/2012

Each property will have its own assessment, and it may differ from the example provided. In addition, this is based on the current project cost estimate. These figures are subject to change based upon final engineering and project costs.

How is the ULID Assessment Collected?

When the Final Assessment Roll has been approved, it is sent to the King County Assessor. King County is responsible for collecting the following assessments for the District:

    • Initial Assessment Notice

        • The first Assessment notice is received by property owners within a few months of filing the Assessment Roll. This notice will indicate the Total ULID Assessment for your property.

        This notice provides 30 days to pay any, all or none of the Assessment without interest.

        Whatever Assessment not paid within that 30 day period, will accrue a full year of interest on the 31st day.

    • Annual Assessments

        • The first of fifteen Annual Assessments will be received approximately one year after the Initial Assessment Notice.

        Each Annual Assessment includes payment of 1/15th of the Total ULID Assessment plus the prior year's interest. Payment of the Annual Assessment is due within 30 days of the notice, and is paid to King County.

        Additional principal payment can be included with the annual assessment payment.

    • Early Payoff of the Assessments

        • Property Owners may choose to pay off any remaining assessment amounts at any time. However, each year after the 30 day period, the next full year of interest will accrue. This means a mid-year payment will include a full year of interest.

    • Assessments and the Sale of Property

        • The District does not require assessments be paid off if a property is sold, mortgaged or re-financed. However, the assessment is a lien on your property and many traditional lenders will require the assessment be paid off as part of a sale or loan.

    *Connection Charge Pre-Payment Opportunity

      The District-Overdale Agreement for Transfer of the Water System includes a provision that property owners may pay their General Facility Charge and Regional Capital Facility Charges, as a lump sum payment, prior to the Final Assessment hearing. If pre-paid, the only connection charge included in the ULID Assessment would be the Annexation Charge. However, this provision is currently under discussion. See Proposed City of Issaquah Assumption section.

What if I don't pay my ULID Assessment?
An assessment is a lien on your property. If payments are not made as provided in the annual notices, the assessment will be delinquent. A late charge or penalty charge will be applied in addition to the principal and interest. If the assessment remains unpaid the property may be foreclosed.

 

ADDITIONAL FUNDING INFORMATION

State Revolving Fund

  • The District applied for State Revolving Funds (SRF) for the Overdale Consolidation project. The application has been approved with a low interest rate and up to 50 percent forgiveness. These funds are only applicable to the Project Costs, and are not applicable to the Connection Charges. This means that of the estimated $1,1 Million in Project Costs, up to $550,000 could be eligible as a grant from the SRF with no repayment required, and the low interest rate loan would be applied to the remainder of the Project Costs.
    Use of the SRF does require additional administrative requirements, and their associated costs. This project is required to be subject to complete the following studies:
    • Investment Grade Energy Audit (for the Booster Pump Stations)
    • Cultural Survey and Historical Review

Cultural Survey and Historical Review

  • The Cultural Assessment and Historical Review, in particular, also adds significant delays. There are essentially three levels of review:

      • 1.) Preliminary Review (conducted by the State of Washington): Determines if there is any likelihood of cultural or historic sites in the vicinity of the project. This review has been completed and found further review was necessary.

      2.) Initial Report (conducted by the State of Washington): Additional study, including review and comment by those parties associated with the Cultural and Historic Sites to determine whether cultural or historic sites could be impacted by the project. The initial review was conducted and DOH and Department of Archaeology and Historic Preservation (DAHP) determined that the project may affect potential historical properties. The completed report was received by the District on October 10, 2012. The report required the District to hire an archaeologist to conduct a Full Assessment including an archaeological survey.

      3.) Full Assessment (conducted by an archaeologist hired by the District, with State of Washington review): In depth study of the project site with respect to cultural and historic sites. The District hired Tierra ROW a land services company to conduct a cultural resources assessment for the project. The District submitted the completed report to DOH on February 28, 2013 for review. DOH has forwarded the report to the Department of Archaeology and Histroric Preservation (DAHP) and Tribes for their review. Upon completion of the DAHP and Tribes review, there will be a 15-day review period of the concurrence letters by DOH. Following the review of the concurrence letters, there will be a 30-day public comment period and a 15-day period for the DOH Final Completion Letter. Construction of the project cannot commence until the DOH Final Completion Letter has been received.

Overdale Water Association Funds

  • Overdale Water Association may obtain additional funds after the final assessment hearing. For instance, from the sale of property. Funds can be provided to the District and applied to the assessments, even after the assessment has been filed.

 

WATER SERVICE APPLICATIONS

  • The District Water Service Application is the document that provides a relationship between the District and the water service customer. It is required.
  • Per the Overdale/District Agreement, the Water Service Applications are to be signed by the Property Owners prior to Closing. The documents will be provided to the District through Escrow.
    • The Water Service Application should be signed prior to the final assessment hearing, for clarity on pre-payment of fees.
    • You will note on these forms there are locations for fees for service.
      • Fees that apply within Overdale Water Service area will either be paid
        • through the ULID, or
        • upon execution of the Water Service Application.
          Note: The City of Issaquah Assumption effort may impact the ability to finance the connection charges.
      • Any property owners that elect to Pay the GFC and RCFC early will pay them with execution of the Water Service Application
        • The payment would be to the Overdale Water Association, and they will deposit this money with Escrow for transfer to the District at Closing.
        • The information on who has paid will be provided to the District for exclusion from the final assessment roll.
  • Without a signed Water Service Application, the District will not be able to provide water service to those properties.
    • The owners of properties without signed Water Service Applications will be contacted by the District.
    • Water shut off notices will be provided, following the same contact schedule used for non-payment of current District customers. (This does not mean that there is a "payment" owing.)

 

DESIGN OF THE OVERDALE WATER SYSTEM INTEGRATION IMPROVEMENTS

What improvements to the Overdale System will be required as part of consolidation of service from Overdale to the District?
In January 2010, Overdale's Board commissioned the District to conduct a Water System Assessment and issue a report that evaluated the Overdale's water system and estimated the costs of integrating Overdale's system into the District's system.

This report identified that:

  • Severe fire flow deficiencies exist in portions of Overdale's water system
  • The upper booster pump station is in poor condition and needs to be replaced.

The report concluded that the District would require certain improvements and modifications be completed before consolidation of water service from Overdale to the District:

  • Install 2 new water main connections between the Overdale and District systems.
  • Replace the upper booster pump station.
  • Adjust the Overdale 625 Pressure Zone to match the District's adjacent 650 pressure zone.
    • Better integrate the Overdale system to the District's system and provide redundancy with additional connections between the systems.
  • Install 1,200 feet of water main in the northeast portion of Overdale's system to provide fire flow (a parallel 650 pressure zone water main that would parallel the water main that serves the upper booster zone.
  • Construct a new booster pump station in a 10-foot by 12-foot building to serve the Overdale 700 Pressure Zone.
  • Reconfigure the Overdale 700 Pressure Zone to improve fire flow coverage from the 650 pressure zone.
  • Abandon the Intertie pressure reducing valve (PRV).
  • Re-orient the lower PRV to create a new 400 pressure zone to improve system reliability.
  • Relocate 4 customer meters to closer water mains.
  • Install PRVs on individual customer services for those properties whose pressure would be increased over 80 psi.
  • Install new customer service water meters to match the meters utilized by the District.
  • Abandon the storage tank and the lower booster station that would not be used following consolidation of water service.
  • Disconnect the Overdale wells from the water system.
  • Note that although Overdale's water pipelines are asbestos cement instead of the District's current standard of ductile iron, they appear to be in reasonably good condition. The District plans to replace them along with other AC mains over the next 20-50 years.

When will the design of these improvements be completed?
Preliminary design of the required improvements has been completed by the District. The final design would be completed following execution of the District-Overdale Agreement for Transfer of the Water System.

The current schedule estimates final design and permitting activities to be completed in the 3rd quarter of 2013.

 

CONSTRUCTION OF THE WATER SYSTEM INTEGRATION IMPROVEMENTS

What construction will be done to integrate the Overdale Water System to the District?
The construction activities parallel those described under System Improvement Design, but generally include:

  • Connections to fully integrate service
  • System modifications and facility retrofits
  • Decommissioning of certain facilities

When will construction occur?
The construction schedule start will be controlled by and follow:

  • Completion of the design
  • Obtaining all permits and approvals
    • City of Issaquah Right-of-Way and Building Permits
    • State Revolving Fund Investment Grade Energy Audit and Cultural Survey and Historic Review Completion.
  • Bidding the Project
  • ULID Final Assessment Hearing
  • Closing of the District-Overdale Agreement for Transfer of the Water System.

The District must take ownership of the Overdale water system before construction starts. The current schedule anticipates construction activities would start anywhere from the Fall of 2013 to early Winter 2014. Obtaining the State Revolving Fund has resulted in delays. Once started, the construction activities are expected to last 3-4 months.

 

MARCH 26, 2012 INFORMATION MEETING

Handouts provided at the March 26, 2012 Information Meeting

 

Questions From March 26, 2012 Information Meeting

What if Overdale Water Association decides not to go forward with the consolidation with the District?
The Overdale Water Association would need to determine how to obtain long-term water supply, without the use of the existing District intertie. The intertie was intended for emergency supply, and the Washington State Department of Health would not allow its continued use without consolidation of the two water systems. One option for Overdale would be to install a treatment system on its existing well to remove arsenic, and hire a water system manager/operator. Overdale evaluated this alternative previously, and decided at that time that it was too expensive.

If Overdale Water Association decides not to go forward at this time, what will happen to the money that the District obtained from bonds to fund the project?
The District bonds that were purchased to fund the Overdale project would be re-allocated to other District projects.

Is there a way around NOT being served by the District?
The only option is for Overdale to obtain its own long-term supply. An individual 5-acre property may be able to drill its own well to that property only. Individual wells for each property owner would not be feasible.

Is it required to attend the April 23, 2012 ULID Formation Hearing?
No, it is not required. It is helpful for the District's Board of Commissioners to hear a balanced viewpoint of supporters and opponents. Formal opposition to the ULID must be in writing, even if you provide oral comment at the Hearing.

If Overdale decides not to go forward at this time, will the reduction in General Facility Charges be preserved until a later date?
The District will likely not extend the reduction in GFCs.

Will the Lower Booster Pump Station vault be removed so that the property has the potential to be developed?
The District's preliminary plans do not include removal of the vault. The vault may be needed to re-orient the PRV to create the 400 pressure zone. The option for removing the vault will be evaluated further.

Where will the water main in the northeast portion of Overdale be located in the roadway? Will it affect the driveways in the area?
The water main is to be constructed on the north and east sides of the roadway. Any driveways that are impacted by the construction will be restored following construction and the road will be repaved. Note that since construction will occur during the winter, final restoration including paving may be delayed until spring.

Is a ULID Assessment a lien on the property?
Yes. Although the District doesn't require that the assessment be paid off upon sale or refinancing of a property, the lender frequently requires it because the District has priority over all other lien holders (except Federal taxes).

When will the interest rate for the assessment be established? Will the interest rate be different if a property owner decides to include in their assessment only the Project Costs and not the Connection Charges?
The Board of Commissioners will set the interest rate at the Final Assessment Hearing. The interest rate will be the same for all costs included in the Final Assessment.

Will the costs of the ULID project vary from the costs presented at the March 26, 2012 meeting?
Most likely. The District has prepared a cost estimate presented at the March 26, 2012 meeting. The final costs of the ULID will be based on actual costs of design work and the bids obtained from contractors prior to the Final Assessment Hearing and the start of construction. Changes from the estimate could occur due to factors such as variations in the bidding climate, changes in scope of the project and site specific conditions discovered during the final design process.

When will the water tower be removed?
The District estimates that it will be removed in early 2013.

What will the Overdale Board do after Overdale is consolidated into the District?
According to the Overdale Board, one of their functions will be to dispose of Overdale properties. Proceeds from the disposal may help offset the cost of the consolidation.

When will I start receiving water bills from the District?
The District will start providing bills to the Overdale area in January or February 2013.

Will my meter be changed?
Currently, Overdale is upgrading any meters that do not meet District standards.

Can I request a meter that is larger than a 3/4" meter?
Yes, but the connection charges for larger meters are higher. For example, the connection charges for a 1" meter are 2.5 times more than for a 3/4" meter. However, if you need a larger meter only for fire sprinklers (your domestic needs require only a 3/4" meter), you would only be charged for the increased physical cost of the larger meter.

Once the consolidation is complete and I have received my final assessment, will there be additional costs in the future?
No. For properties that are currently receiving water service from the Overdale Water Association, future costs will be limited to District water rates. The Overdale Board noted that some customers may experience lower water bills under the District. Properties that do not currently receive water service may have additional costs, dependent on whether a meter was installed at the time of consolidation and whether connection charges were paid or assessed in conjunction with the ULID.