The Tribune Democrat, Johnstown, PA

Local News

August 29, 2010

Loan boosts water project

Would connect Johnstown and Ligonier Borough

— A groundbreaking regional water connection between Johnstown and Ligonier Borough will move forward after officials landed a key $9.8 million loan.

First proposed in early 2009, the link between Greater Johnstown Water Authority and Westmoreland County Municipal Authority now can proceed beyond the planning stage.

But, since the project involves running miles of a new pipeline over Laurel Ridge to connect two counties, major construction work will have to wait until the coming winter’s snows have melted.

“We’ll start in the spring,” said Ed Cernic Sr., who chairs the Johnstown authority’s board.

Both authorities are managed by Resource Development and Management Inc., better known as RDM.

And RDM administrators have identified a pressing need on both sides of the ridge: Officials have said the future of Ligonier Borough’s water supply is tenuous, while the Greater Johnstown system boasts much more supply than current demand.

The plan is to construct a water line, a pumping station and storage tanks to send 400,000 to 600,000 gallons daily from Greater Johnstown to Ligonier.

“We want to make sure we’re generating enough sales of water that cover the costs on our end, so that it’s no burden on the present customer base,” said Ed Schmitt of Gibson-Thomas Engineering Co., the Greater Johnstown authority’s engineering firm.

As for Ligonier, “they do need additional supply, and everyone’s looking to the future,” Schmitt said.

Greater Johnstown officials expect to pick up about

1,400 customers, the vast majority in Ligonier Borough.

“We’re not picking up the Ligonier Township system,” Schmitt said.

“They have their own system, and they’re going to maintain that.”

He added that there is an opportunity for future, further growth of Greater Johnstown’s customer base in Westmoreland County.

Project advocates had said the regional nature of the project would make it attractive for those who distribute state and federal funding.

That appears to be true, as Greater Johnstown Water Authority officials recently learned of the $9.8 million low-interest loan from the Pennsylvania Infrastructure Investment Authority, known as PENNVEST.

“It’s really good news,” Cernic said.

It is a 20-year loan with a

1-percent interest rate for the first five years and a 1.5-percent rate for the remainder.

“With that kind of money, we have the ability to put the project together,” Schmitt said.

Officials also have applied for additional grant money from the state and federal governments.

“Right now, anything else we get will make the project that much more cost-effective,” Schmitt said.

The state Department of Environmental Protection already has approved a permit for the new pipeline. Schmitt said officials plan to now proceed with right-of-way acquisitions.

“Everybody’s committed to make it work,” Schmitt said.

 

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