A water purchase proposal was approved in 2010 with the DOC, but no contract was made, Murman said.
“Will anybody on your board receive or get compensation for any of this?” Sullivan said.
Murman replied no, saying the only people who will benefit from the project are those with the DOC and the city of Lexington as well as about 88 citizens.
“How big could this (project) be?” Cleveland said.
Murman said the project’s board wants the main water line, which would be a 10-inch line, to run along State Highway 39 and then split north and south. The system would be designed for a total of 105 users.
When Sullivan asked about comparing water rates with surrounding areas, Daryl Covey, chairman of Rural Water District No. 1, said the USDA provided them with a business plan, including the water rates.
“They (the USDA) have essentially given us our business plan. They said this will be your structure, here’s the payments every month, here’s the whole thing laid out, here’s what you’re agreeing to,” Covey said.
Murman said the loan for the USDA is for 40 years. The first two years of that payment would be deferred to operations and maintenance of the system to develop some type of performance level, he said.
Commissioners decided to approve the agenda item under the premise that the item will be put back on the BFCC’s agenda so it can go under review in December, at which time they will check the project’s status.