A long-awaited plan to bring water service to New Salem residents has cleared its final planning hurdle.
The New Scotland and Bethlehem town boards each approved an intermunicipal water supply agreement for the newly formed New Salem Water District on Wednesday, June 12. The district generally encompasses the hamlet of New Salem and will bring water service to about 170 homes.
The cost of designing and constructing the district in New Scotland cannot exceed $3.05 million, which will largely be provided through an interest-free loan to be paid back in 30 years. Bethlehem is kicking in $152,000 for constructing the district, as well.
The purchase agreement is for 30 years.
New Scotland can purchase up to 11 million gallons of water per year at the rate of $2.27 per1,000 gallons. The rate will increase annually per the change in the consumer price index. Additional water up to 13 million gallons annually can be purchased at twice the normal rate.
“It is a great agreement both for the Town of New Scotland and for the Town of Bethlehem,” Bethlehem Supervisor John Clarkson said.
New Scotland Supervisor Tom Dolin said initial negotiations started around 9 million gallons annually, but the town was able to negotiate to a more comfortable 11 million gallons, with the extra safeguard.
“It is above what we are experiencing in other existing water districts,” Dolin said, “so I am feeling comfortable that we can at least guarantee customers a reasonable amount of water at that rate so they won’t feel they have to skimp.”
The district must be connected to the Bethlehem Water District pipeline along Route 85, which will involve the building of a meter pit, a booster pump station, a 200,000 gallon water tank adjacent to New Scotland’s highway garage, two pressure reducing values and the installation of approximately 16,700 linear feet of 8-inch pipe.
Bethlehem is already serving 75 water customers within new district from a pipeline that is around 90 years old. Certain properties located within the district get their water from the Helderberg Spring, but Bethlehem decided to stop using the spring as a water source.
After New Scotland passed the agreement, Dolin said, “That is quite a victory.” The push for the new district started around eight years ago.
“This agreement has been in gestation for probably around a year-and-a-half,” Dolin said.
The only hiccup in the passage came when New Scotland Councilwoman Patricia Snyder wanted to clarify the correct number of users in the contract, as around 150 properties were named. The actual customers are greater, because there are some apartments and multi-family housing included in the district.
Town officials said the amount of water purchased is more important to Bethlehem in the contract than the number of customers.