October 11, 2013 City Commission Meeting

Detailed Sections

Water Infrastructure Master Plan Update

Consultants presented updates on the city's water infrastructure, covering treatment, distribution, and wastewater systems.

• Water Treatment Plant Improvements:

  • Discussion centered on improving water quality, particularly taste and odor issues, to potentially attract wholesale customers.
  • Recommendation: Install Granular Activated Carbon (GAC) filters and build a downstream disinfection basin. This approach is estimated at 💰 $3.6 million, significantly less than building a new 9 MGD plant (estimated at 💰 $25 million).
  • GAC filters are expected to become biologically active, consuming taste and odor compounds, potentially lasting longer without annual replacement after a 6-month acclimation period.
  • Future improvements beyond 📅 2020 include potentially doubling plant capacity, but demand projections make long-term planning less certain.

• Water Distribution System Model:

  • The water distribution model is complete, calibrated, and staff trained on its use. It incorporates GIS data, billing zones, and pressure loggers for accuracy.
  • The model was used to verify calculations for the new Windir Edition subdivision.
  • It can simulate various scenarios (winter/summer, future 📅 2030 demands) and analyze pressure distribution across the city.
  • Key Findings:
    • Identified areas with lower pressure (e.g., 40 PSI in the middle of town during peak summer flow of 7.25 MGD).
    • Identified undersized pipes (velocities over 8 ft/sec) that need upsizing.
    • Future Needs: An additional water storage facility (tank or tower, estimated 💰 $750,000 for 0.5M gallon storage) and a third operational pump are projected for 📅 2030 to meet increased demand (up to 10 MGD).
  • The model is a "live model" that will be continuously updated by city staff with new projects (e.g., Kickapoo Street line).

Wastewater Infrastructure Master Plan Update

Consultants provided an update on the wastewater collection and treatment systems.

• Wastewater Collection System Model:

  • An "Infoworks ICM" model is being built, similar to the water distribution model, to analyze the entire wastewater collection system, future flows, and capacity.
  • All sanitary sewer collection line as-built plans have been scanned and integrated into a GIS platform.
  • GIS Integration: Staff will be able to access detailed information in the field, including manhole numbers, project plans, and closed-circuit videos of pipes, to identify and address issues like inflow and infiltration (I&I).
  • Floodplain Manholes: Identified manholes within the 100-year flood plain that are below the base flood elevation and should be raised to prevent I&I during storms.
  • The model is a "moving model" that will be continually refined with new data.

• Wastewater Treatment Plants (North & South):

  • South Plant:
    • Positive Outcome: Staff successfully worked with ODQ to obtain a permit limit that does not include ammonia, avoiding hundreds of millions in potential upgrade costs.
    • Ongoing Concern: The plant has previously failed "wet tests" (effluent toxicity tests), which could lead to future ammonia limits if failures recur. The recent failure was deemed an isolated event, and the plant has been passing tests for about a year.
    • Phase Zero Improvements (0-10 years):
      • New Headworks Facility: 💰 $4.2 - $6 million to improve screening and grit removal, crucial for plant operation and protecting equipment. This facility would be useful even if wastewater is eventually pumped to the North Plant.
      • Monitor Ammonia: Continue monitoring ammonia levels.
      • Larger Excess Flow Holding Basin: The current basin is undersized (needs to be 10x larger) to manage hydraulic surges during wet weather events and prevent process problems.
      • Security System Improvements: Video cameras, card scanners, and locks for buildings.
  • North Plant:
    • All future growth is planned to go to the North Plant.
    • Future Expansion: When the plant reaches 80% capacity (projected 📅 5-10 years), a stream study will be needed (2-3 years prior to 80% capacity) to determine permit limits for expansion. Expansion is projected around 📅 2032-2033.
    • Phase Zero Improvements: Specific improvements identified for reliability and redundancy.

Capital Improvement Plan (CIP) Work Session

The council discussed the city's Capital Improvement Plan, current funding, and project prioritization.

• Purpose of CIP: Focus on community goals, stabilize finances, support "pay-as-you-go" strategies, forecast financing options, encourage citizen participation, and improve departmental administration and project implementation.
• Current Debt Service & Funding:
  • The Third Penny sales tax generates 💰 $3.875 million annually.
  • Current debt service payments (Expo, Library roof, Airport track, Pool, Motorola lease) consume a significant portion.
  • Available General Fund CIP: Approximately 💰 $500,000 per year remains from the Third Penny for general fund capital projects. This amount is currently used for annual operational capital (lawnmowers, police cars, furniture) and is not available for new large projects without re-prioritization.
  • Street Funding: An additional 💰 $2.4 million per year is generated for street funding, primarily used for maintenance (asphalt overlay, panel replacement).
  • Debt Payoff: The largest portion of debt (Expo, non-taxable and taxable) is projected to be paid off by 📅 2016, freeing up significant funds.
• Project List Review:
  • The existing CIP list was adopted in 📅 January 2011 and totals 💰 $113 million.
  • Progress: Approximately 💰 $11 million in projects have been completed since 2011, often in partnership with tribes and the county.
  • New Projects: Additional projects have emerged (e.g., South Kickapoo project, Master Trails plan) adding another 💰 $20 million to the list.
  • Reprioritization Needed: Commissioners acknowledged the need to review and reprioritize the list, considering current financial realities and changing circumstances (e.g., Bryan Street exit status).
  • High Priority Discussion: The South Access Road off I-40 (currently item #38 on the list) was highlighted as a potential high priority due to its retail growth potential, despite challenges like wetlands and railroad crossings.
  • Fire Apparatus: A new fire squad apparatus (estimated 💰 $250,000) is being ordered this year, funded from previous and current budget allocations.
• Future Funding Discussion:
  • Hotel/Motel Tax: Discussed increasing the hotel/motel tax (currently generating 💰 ~$100,000 per percentage point) and potentially dedicating a portion to economic development or Expo Center expenditures to free up general funds. This would require a public vote.
  • Ad Valorem Tax: Commissioners discussed implementing an Ad Valorem (property) tax (1-5 mills) for economic development, which would not require a public vote if for specific purposes like a court judgment, but would need voter approval for general economic development. This was suggested to counter the loss of tax revenue from tribal land acquisitions.
  • Next Steps: Staff will present a revamped, prioritized list of capital projects for further discussion at a future work session. The commission also discussed engaging a PR firm to assist with public information and marketing for future funding initiatives.

Economic Development Association (EDA) Grant for North Airport Sewer Line

• Discussion: The Mayor suggested tabling the discussion on applying for an EDA grant to extend a sewer line to the north airport property.
• Reasoning: Staff indicated that the chances of securing such a grant are low without a specific industry or prospect already committed to the site.
• Cost: Estimated 💰 $1.5 million to extend sewer services to the 200+ acre property.
• Economic Development Need: Commissioners emphasized the need for the city to proactively invest in infrastructure (like sewer to the airport property) and potentially an "incubator building" to attract businesses and jobs, rather than waiting for immediate demand.

Agenda Summary Table