The city of Simi Valley is moving forward on a plan to increase water storage capacity in the Santa Susana Knolls, and officials say construction on a new water tank should begin this fall.

On July 13 the City Council, acting as the board of directors for Ventura County Waterworks District No. 8, authorized the public works department to begin soliciting bids for the construction of Alta Vista Water Tank No. 2.

Since February 2008, a moratorium has been placed on new requests for water service in the Knolls, which is located at the eastern edge of Simi Valley, south of the railroad tracks, because the water supply is insufficient for domestic, emergency and fire storage demands.

A little more than a year ago the board directed city staff to implement what it's calling a shortterm project to address the water storage problem in the Knolls. That is the function of tank No. 2. The city is also pursuing a longterm solution to build a 1milliongallon water tank.

The city paid $28,000 for the property for tank No. 2 in November, using waterworks district funds, which are separate from the city's general fund. The total construction cost is estimated at $210,000.

The new 126,000-gallon tank will sit at an elevation of 1,404 feet, adjacent to an existing, equal-sized tank that currently serves the area, thus doubling water capacity.

The site is on the west side of Crown Hill Drive, about 400 feet south of Alta Vista Road.

Even with tank No. 2, the water supply in the Knolls would still be below district standards, but the new tank will satisfy Ventura County Fire Department requirements for water storage in a residential area and allow for some new water connections.

Ron Fuchiwaki, director of public works, said the existing tank serves about 450 homes in the Knolls and Box Canyon areas. He said the new tank will be connected to the current one and that they will "essentially act as one big 250,000-gallon tank."

Those residents who live above the elevation of the new tank will not qualify for new water connections because the gravityflow water system cannot supply water uphill, Fuchiwaki said.

Some property owners in the Knolls who would like to develop their land have been unable to because of the water shortage.

In order to meet district standards and connect to the existing tank, they would need to build and pay for a costly water pumping system.

The only alternative for these landowners is to wait until the 1million-gallon tank is completed, which may not be until late 2011.

"We're negotiating with a property owner for the possible purchase of a piece of property further up the hill," Fuchiwaki said.

The delay in securing the property, he added, is the result of negotiations on the price. The 1million-gallon tank is estimated to cost $1.82 million to build.

Fuchiwaki said the parcel is near the top of the hill, at an elevation of 1,466 feet, so water from the tank would be able to flow down to all the developable properties in the area.

Tank No. 2 would be retained after the completion of the 1million-gallon tank.

The board will award a construction contract for the 126,000gallon tank at the end of August and construction is scheduled to begin Sept. 14.

The tank is expected to be finished by early January 2010.