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HomeMy WebLinkAbout8B - Water Treatment Plant DISCUSSION: ISSUES: JUNE 5, 2006 8B STEVE ALBRECHT, DIRECTOR OF PUBLIC WORKS WATER TREATMENT PLANT INFORMATIONAL HEARING Introduction The purpose of this agenda item is to provide the public additional information and allow an opportunity to ask questions regarding the proposed Water Treatment Plant (WTP). History The City of Prior Lake Capital Improvements Program (CIP) has planned for a Water Treatment Plant since the mid '90s. The CIP has budgeted $13 million for the construction of a Water Treatment Plant and associated water storage. In January of 2005 the City Council raised water rates. Part of that rate increase was in anticipation of the Water Treatment Plant. By adjusting these rates previously the plant can be completely funded without use of any tax dollars or additional adjustments to water rates. The City of Prior Lake draws the majority of our drinking water from the Jordan Aquifer. In Prior Lake this aquifer is high in both iron and manganese. While the water is safe to drink, the levels of these minerals present in the water exceed secondary drinking water standards established by the Environmental Protection Agency (EPA). As a result numerous residents experience water staining, odor and even taste issues at their residences. These high levels also affect the life of water filters and softeners. In addition to the impacts at residences these minerals cause build-up in the water system piping that can substantially reduce the capacity of watermains and water services. The natural environment that makes Prior Lake so special causes problems with our water system. The lake acts as a barrier resulting in numerous dead- end watermains where lack of water circulation results in the above problems. For that reason City staff flushes watermains on an aggressive schedule to keep them as clean as possible. Current Circumstances The City Council, as part of the public information process for this project has recommended a public information hearing. The staff will make a presentation addressing the issues identified below. It would then be appropriate to open the floor for questions and comments from residents. Several issues have been raised throughout the process. The major issues identified by staff are as follows: 1) Why were water rates raised? Water rates were raised to help fund ongoing water system infrastructure reconstruction and the water treatment plant. R'Agenda ReportsUune 52006NVTP www.cityofpriorlake.com Phone 952.447.4230 / Fax 952.447.4245 FINANCIAL IMPACT: ALTERNATIVES: 2) Why not have a referendum for the Water Treatment Plant? The City contacted our bond consultants and were advised not to conduct a referendum. Because the Water Treatment Plant will be funded from the Water Utility Fund no tax increase or dollars are needed. The referendum would be considered advisory and could jeopardize the tax exempt status of any bonds issued to fund the project. Additionally City staff teels that quality water is an essential service and all residents of this City deserve the highest quality water we can deliver. 3) Why not utilize a different water source? The City of Prior Lake's only source of potable water is groundwater. Three aquifers or water producing layers exist under the City of Prior Lake. They are the Jordan, Franconia-Ironton-Galesville and Mt. Simon aquifers. The Jordan aquifer provides an average of 1,000 gpm from 4 existing wells in the City and is considered a very viable source however it is high in iron and manganese. Currently an additional Jordan Well (#8) is under construction by the City. The FIG aquifer is deeper and only provides an average of 300 gpm. The City currently has 1 FIG well and is developing another. While iron and manganese are at lower levels these wells do not provide enough water to be considered a primary source. These wells are also deeper more expensive to construct than the Jordan. The Mt. Simon aquifer is the deepest aquifer and is protected by the Department of Natural Resources for future or emergency use. While it produces 1,000 gpm it also typically contains radium and needs to be mixed with other water sources or treated. For the above listed reasons the Jordan aquifer is the only viable source for the City. 4) Can't we change maintenance techniques to improve water quality? City staff currently is utilizing flushing, computerized water modeling and other methods to improve water quality. However there are no additional things staff can do to improve the water beyond its current quality. 5) Why not have developer's pay for the water treatment plant? The proposed plant will serve the existing residents. A future plant on the west side of the lake in the annexation area will serve new development. The primary source of funding for the future plant will be development fees collected from those benefiting parcels. The City previously raised water rates in anticipation of this project. No tax or water rate increases are proposed for this project. 1. Direct the WTP Committee to begin the Consultant selection process for the WTP project. 2. Provide the WTP Committee with different direction. 3. Table this item to a certain date in the future. RECOMMENDED MOTION: St ff recommends alternative number 1. les, City Manager R.\,~genda R.eports\June 52CDS'.\.\fTP