Cape May to Restore Existing Water Tower

CAPE MAY — City Council voted 5-0 Tuesday to repair rather than replace the water tower on Columbia Avenue.
Councilman William Murray said a rehabilitated tank was projected to have a life expectancy of 30 to 50 years.
He said the cost of “rehabbing” the tank was less and the schedule for repairs would have much less impact on residents and visitors than replacing the tank.
Councilwomen Deanna Fiocca and Terri Swain concurred.
“To me, it was a no-brainer, that was the way we should go, restoration,” said Deputy Mayor Jack Wichterman.
He said a consultant that inspected the water tower told him the rehab, with proper maintenance, could possibly last 70 years.
Repairs could begin in September, said Wichterman.
Mayor Edward J. Mahaney Jr. said an on-site study on the interior and exterior of the water tower showed it still had a “very viable life.” He said the city was trying to conserve money in this difficult economic time.
The mayor asked council to place discussion of a possible USDA $515,000 grant and a $1.5 loan for water infrastructure on the agenda for council’s Sept. 6 work session. The financing could be used for the water tower or possibly other water-related projects.
Mahaney said council needed to get a long-term plan in place, within existing debt service, so water customers do not see a rate increase.
Alternative financing for rehabilitating the water tower could be done with bond anticipation notes year-by-year, which would pay off the project in 10 years, said Mahaney. He said the current interest rate for that type financing is 1 percent while interest rates for permanent financing, including USDA, would be in the three to four percent range.
Estimates to replace the water tower totaled as high as $2 million while restoring the tank would cost about $1.2 million.