Plans for new 3 million gallon water tank flowing well
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Last week, they opened bids for a proposed water storage tank located off Highway 127 near the Highway 108 split. They reviewed bids for the tank and a transmission line Tuesday but said since they are seeking to borrow money for the project, they would seek more information from state loan officials who could request the city raise its water rates again if project costs are too high.
The cost of the tank and connecting water line is an estimated $2.6 million, about $500,000 more than originally estimated. The city’s primary water engineer, James Hailey, said steel costs rose significantly after original estimates were prepared.
City officials are hopeful water rates won’t have to be raised again to support the project.
Over the past two years, city officials have spent time negotiating easements with property owners, have purchased the land for the tank site, which is not in the city, and now are in the midst of making decisions on the tank.
Public notice, appraisals, land acquisition, recording easements and legal fees cost about $53,000, including the tank site. The city acquired about two acres of land for the project, Water and Wastewater director Carl Davis said.
The proposed tank would join the city’s three other tanks.
“It will provide additional storage, increase the volume of available water and increase fire protection capabilities and increase the quality of water by eliminating dead end lines,” Davis said of the need for new water storage and line, which connects the tank to the water plant. “It will also stabilize the pressure in surrounding areas. The south end of town in our system is the lowest pressure area.”
It has been a long process and Davis said he welcomes the possibility that increased water capabilities could become a reality.
“It’s a project we look forward to doing and it’s something that will enhance our system,” he said.
As far as the financing, he said last week the state holds the cards.
“They did approve the $2.1 million loan when the project was first initiated and now the cost of steel has gone up about 38 percent. That’s the increase in this project, so we’re looking at between $2.5 and $2.6 for the same project.”
After hearing about the bids, city officials meeting in Water and Wastewater Committee Tuesday agreed and said they anticipate discussing the bids with the state.
Exiting alderman Jimmy Bonner, who chairs that committee, said it’s one of the projects he is most proud of as it will improve the city’s ability to fight fires if it is realized.
“That’s one of the projects that I’ve worked on that when it becomes reality, will be one of the best things to happen,” Bonner said.
Costs for a larger transmission line were more, according to the bids, but officials agreed with the engineer Tuesday who said purchasing a smaller 20-inch transmission line instead of a 24-inch line would suffice given the cost difference.