Woodland Hills Sanitary
District
Minutes of Public Hearing
for Drinking Water Facilities Funding Application
7:00pm March 20, 2013
The
Woodland Hills Sanitary District (WHSD) held a public hearing regarding the
district's drinking water facilities funding application. The meeting was held at the Black Hawk
Volunteer Fire Department meeting room at 6010 Peaceful Pines Rd, Black Hawk,
SD 57718.
Attending
were:
Randy
Alexander - WHSD president
Evan
Hutchings - WHSD trustee
Jim
Stewart - secretary
Dale
Hansen - legal counsel
Ted
Schultz - Cetec Engineering Svc Incorporated
Alexis
(Ali) Demersseman - Community Development Planner, Black Hills Council of Local
Governments
Randy
Alexander called the hearing to order and introduced Ali. Ali covered the purpose of the hearing and
turned the meeting over to Ted from Cetec.
Ted
covered the handout which explained the proposed water project and explained
all the alternatives and how the district arrived at the proposed
solution. To lessen the financial
impact the water system would be overhauled in phases. Ted then explained what parts or sections of
the water system will be repaired or replaced in Phase 1 and the price
breakdown of each those parts or section.
Ali
discussed the proposed financing for the project, a drinking water state
revolving (DWSRF) loan through the South Dakota Department of Environment and
Natural Resources. The amount of the
loan would be $780,000 and the revenue source would be a project surcharge
revenue bond. The interest on the loan
would be 3% for 20 years. Ali explained
the affect of the proposed financing on the customers of the water system would
be a surcharge of $47.20 per month, based on 101 customers.
Randy
then asked for public comments or questions.
Tim
Severson asked about the proposed phases and if a timetable had been
established. Ted replied that the
results of the work in Phase 1 would determine the urgency for starting Phase
2. If the repairs in Phase 1 revealed
the system to be in terrible condition then Phase 2 would need to start sooner
rather than later.
Jim
Kienitz asked how this project would affect water rates in the future and would
the proposed meter replacement and pits be for part of the system or the entire
system. Ted answered that the water rates
would be independent of the water project surcharge and that rates would mostly
likely be adjusted for inflation or the cost of operating the system. Jim also suggested the district consider
installing generators as a backup power source for the system.
Gary
Colasardo commented that Phase 1 would reveal fairly quickly if Phase 2 needs
to be sooner. The repairs to the system
in Phase 1 could impact the rest of the system if water pressure increases as
leaks eliminated.
Terry
Nelson thanked the district trustees for studying the issue and putting together this proposal. He also commented that home values are
affected by the quality of the water system.
If the system doesn't work properly the $47 surcharge would big
insignificant to the loss of home values.
Terry then suggested that the project be expanded to replace more of the
mainline pipes because there is really no way to know what kind of pipe was
used and if it was installed correctly.
Scott
Haskell asked if the meters will be at or near the curb stops. He was told yes.
Sue
Jones inquired about construction in winter and how could proper compaction be
performed with frozen ground. Ted
replied that the schedule would have backfill and compaction completed before
freezing conditions occurred. Sue asked
if a weather shutdown is in plan. Sue
asked Ted who would perform inspections of the work and how often would that
take place? Ted replied that
inspections would be frequent and would cover all fittings and connections and
backfilling to ensure the pipe bedding was correct.
Rich
Rairdon asked about the purpose of the meter pits and had the board considered
sonic detection of the water leaks that we have. Ted answer that the meter pits at the curb would be used to
quickly track down residential service line leaks and to eliminate the self
reads of the meters. Sonic leak
detection has been used where possible.
Scott
Haskell asked about the type of pipe that will be used. Ted covered the technical specifications of
the pipe.
John
Zogorski asked if landowners will be consulted with regards to the location of
the meter pits and would he get credit for a meter that he installed at his own
expense a few years back. John also
asked about repairs to the roads affected by the water project construction and
asked for definition of service line.
The reply from Ted is that meter pits would be located at the current
curb stop location where practical. The
question of a credit for John's meter was left open. The cost of patching the roads was included in the project cost
estimate.
Tony
Rodriguez asked if remote read meters would be used and if any road district
money is going to be used in the project.
Ted replied that remote read meters will be used and Randy stated road
district funds will not be used in the project. The road district account is separate from the WHSD accounts.
Sue
Jones: will CETEC write the contract?
Ted answered yes.
John
Zogorski seconded Terry Nelson's idea that the project should replace more
mainline pipe. Ted answered that we
should see the results of Phase 1 before deciding how much more main pipe
should be replaced.
Rich
Rairdon asked how the board arrived at the scope of the proposed project. Ted answered saying the trustees evaluated
the entire system and picked what they considered the most urgent needs based
on repair history and age of the various sections of the water system.
Ed
Streibel, the water system operator, commented how Phase 1 would be a learning
experience allowing us to see first hand how the current pipe was installed and
exactly what we have underneath us. By
seeing the pipe it can guide us in deciding what comes next.
Larry
Taylor commented on the cost of replacing all the mainline pipe would double or
triple the surcharge to each homeowner.
Terry
Nelson asked about what amount of loan forgiveness (sic) that we might expect
from the state. Ted's reply was that
we really have no way of knowing and that all the cost projections assumed zero
percent forgiveness. Terry said that
whatever that amount might be it should go to replacing more of the aging
mainline pipe. He wished to confirm his
belief that loan rates are low and that an increase in the surcharge would be
negligible compared the loss of home value if the water system failed.
Garry
Colosardo seconded Terry's notion adding that we should pay more now and get
things fixed while the cost of money is low.
Jim
Stewart asked if the surcharge could be placed on the property tax bills making
it eligible for a federal income tax deduction.
Rich
Rairdon asked if the district trustees would estimate where water rates might
go with this project. Randy replied
that the district would like to set aside enough money to pay for future
upgrades rather than seeking loans.
Terry
Nelson asked if a timetable had been established for the different phases
saying that it seemed unreasonable for one section of the system to be repaired while asking everyone to pay for
that repair.
Lisa
Goodwin suggested a wait and see approach on future phases because we have to
see what's in the ground in Phase 1 before committing to a Phase 2 or 3.
There
were no more comments or questions from the audience.
Jim
Stewart made a motion for the district president to sign the following
documents:
a. Application Cover Page for the Drinking
Water Facilities Funding Application
b.
Resolution of Authorized Signatory:
“Resolution Approving an Application for Financial Assistance,
Authorizing the Execution and Submittal of the Application, and Designating an
Authorized Representative to Certify and Sign Payment Requests.”
c.
“7.3.10 – Certification Regarding Debarment, Suspension, and Other
Responsibility Matters”
d.
“7.3.8 – Certification of Drinking Water Needs Categories”
e.
“7.3.9 - Preaward Compliance Review Report for all Applicants and Recipients
Requesting EPA Financial Assistance”
Evan
Hutchings seconded the motion and Resolution 2013-1 "Resolution
Approving an Application for Financial Assistance, Authorizing the Execution
and Submittal of the Application, and Designating an Authorized Representative
to Certify and Sign Payment Requests.” carried unanimously.
President
Randy Alexander then signed the application., attested by Jim Stewart, district
secretary.
The
public hearing ended at 8:17pm.
These
minutes recorded and submitted by:
Jim
Stewart
WHSD
secretary