Two temporary steel reservoir tanks will hold water while crews demolish and remove the old reservoir and pipelines, and remediate abandoned oil wells that once operated on the site. Photo: Yorba Linda Water District

The Yorba Linda Water District is replacing a 95-year-old, 4.6-million-gallon reservoir—one of California's oldest water-storage facilities—with a 6-million-gallon underground reinforced concrete reservoir.

The $11.2 million project is being financed from the sale of $40 million in capital improvement bonds at 4.48% interest. The bonds sold quickly after the district announced it had received a AAA rating from Standard & Poor's, making the water supplier one of the few public agencies nationwide to receive the company's highest long-term credit rating. Construction is scheduled for completion by June 2010.

“Our long-term commitment to fiscal conservatism is now paying dividends,” says General Manager Michael Payne. “Having sufficient water storage capacity is critical to ensuring a low-cost, reliable supply. We'll be able to provide this capacity at a much lower cost thanks to the AAA rating.”

The open-air reservoir was given a roof and enclosure walls in the late 1950s. The district, which traces its roots to 1909, provides water and wastewater service to 75,000 residents in Yorba Linda, Placentia, Anaheim, Brea, and unincorporated Orange County.