KIA approves $7,027,878 loan to the City of Somerset

The City of Somerset was approved for a Fund F loan in the amount of $7,027,878 for the Storage Tank, Booster Stations, and Water Main Extension project, which is consisting of 2 contracts.

Contract 1 – Oak Hill Storage Tank Replacement, 5 MG Booster Station, and Water Main Extension will replace an existing one million gallon storage tank with a new one of the same storage capacity. It will also build a new booster pump station with 5 million gallon capacity and SCADA, add Variable Frequency Drives at the water treatment plant, and install an eight inch water main near the Lake Cumberland Regional Hospital to balance pressure in the system.

Contract 2 – Valley Oak Industrial Park Water System Improvements will construct a 1,000 gallon per minute water booster pumping station to facilitate filling of the Sugar Hill Water Storage Tank, install a new water mixing system in the same tank, reconfigure piping that feeds the tank, and build a Chlorination Booster Station to improve water quality for the Valley Oak Industrial Park and Southeastern Water Association.

The city is a regional provider currently serving approximately 9,000 retail and 4 wholesale customers in Somerset and the surrounding area. Of the 4 wholesale customers, Southeastern Water Association and Western Pulaski County Water District are PSC regulated systems.

Among its functions, KIA provides low-interest loans to public utilities for projects having to do with storm water control treatment systems, solid waste management systems and other infrastructure vital to public health.

KIA was created in 1988 to provide funding mechanisms for local public works projects. As of last year, the agency had provided more than $1.7 billion in assistance to municipalities across the Commonwealth wanting to expand access to potable water. KIA is under the Office of the Governor and administratively attached to the Department for Local Government. To learn more, visit kia.ky.gov.

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