Wholesale water district discussed at city meeting
Staff reporter
A feasibility study has been completed to determine if an independent wholesale water district should replace individual city water treatment plants.
Marion City Commission heard the report Monday that promoted a wholesale water district to provide drinking water to Marion, Hillsboro, and Peabody.
David Mayfield, city administrator, said the least expensive option was a new facility near Marion Reservoir.
Three options were presented: updating the Marion water plant, updating the Hillsboro water plant, or building a new plant.
The total cost for a new water plant was estimated at $6,924,000, including $315,000 for land acquisition of five to 10 acres.
If the Hillsboro plant was modified, the City of Hillsboro would receive $2,254,000 for property acquisition costs. Construction costs would be $3,662,000, for a total cost of $6,526,000, which would include a pipeline to Marion and acquisition costs to Peabody.
Construction costs for improvements of Marion water plant would cost $4,978,000 with the City of Marion receiving $1,015,000 for property acquisition. The total cost would be $6,023,000
If the commission decided to approve one of the options, the water district would be independent — not belonging to Marion or Hillsboro.
Two repayment options also were discussed. USDA Rural Development might offer a 40 percent grant with a 60 percent loan. Kansas Department of Health and Environment also might offer a loan for one of the scenarios.
Mayfield said rural development may be willing to offer more grant money for construction of a new plant.
Commissioner Larry McLain asked if the water district was located in Hillsboro, would Hillsboro reap a property tax benefit. It was assumed the district would be tax exempt but would need to be researched.
McLain added it appeared that Marion would not receive the same benefits as Hillsboro and Peabody.
Mayfield said there could be some other ways to reduce costs. He also had other concerns and questions about the study and the length of time to construct a new facility.
"Will KDHE allow Marion to be out of compliance during construction?" Mayfield asked.
McLain said there were additional potential customers in rural Marion County who could help to reduce the cost.
Mayfield said if the commission did not want to accept any of the proposals, the city would do the planned upgrades.
The city will apply for a loan and grant from USDA Rural Development. If the loan and grant isn't obtained, the city was previously approved for a loan from KDHE.
Commissioner Jim Crofoot said eventually the city will have to consider one plant between Marion and Hillsboro.
Officials will meet and further discuss options.
In other business:
— The commission approved an easement for Tony Schafers to obtain additional access to his business property located at Second and Water streets.
At a previous commission meeting, Schafers had made a request to purchase a small piece of property.
The city questioned who actually owned the pie-shaped piece of property. The county appraiser's office shows the city as owner of the property but the city wasn't sure if that was accurate.
— Street superintendent and building inspector Marty Fredrickson reported information had been sent to the owners of the property at 1018 Denver, regarding necessary improvements to avoid condemnation.
Fredrickson said the owner had not yet responded.
— Mayfield reported he attended an agritourism meeting at Tampa. He said it would have to be a joint effort with surrounding counties. Representatives from Marion, Chase, Dickinson, and McPherson counties attended.
Mayfield said he will attend a statewide agritourism meeting at Great Bend.
— A reminder was made that this is city cleanup week.
— This past week, city crews did equipment maintenance, checked Christmas lights on buildings, and hauled and spread shale at the baseball complex, Fredrickson reported.
— Mayfield said information had been entered on a Kansas Department of Commerce web site, listing property available for development and community information.
To access the information, the web address is www.kansascommerce.com. Access the database on the left side of the web page. Scroll to and select Marion to see information.
— Warrants in the amount of $27,256 were approved.
The next commission meeting will be at 4 p.m. Monday in the city building.
