Monday, September 16, 2024
As a result, when the Waupaca Common Council met Wednesday, Feb. 16, it voted to table until its March 15 meeting a decision about whether to borrow approximately $800,000 for capital projects.
The council did, however, vote 9-0 to proceed with the Pleasant Street utility project. Alderman James Boyer was absent.
The project is estimated to cost $675,000.
Of that amount, the city proposes to borrow $300,000 from the Wisconsin Department of Natural Resources' Safe Drinking Water Fund.
A total of $75,000 is included in the city's proposed $800,000 borrow, and the plan is for the city to borrow the other $300,000 for the project from the city's water department.
If the city does not borrow the $800,000 for capital, the $75,000 would also be part of the borrow from the water department.
"Most of the funding comes from borrowing through the water fund," Mayor Brian Smith said. "There is $75,000 of the $800,000 (proposed borrow). We could actually have the water department (reserves) pay for those and then set up a payment plan between the city and water department to pay back the loan."
Director of Public Works John Edlebeck said the council's approval of the project means construction could begin in early to mid-May, with completion estimated by the end of September.
He said the water fund and its reserves would actually act like a bank, with a payment and interest plan set.
"I'd like to see this get on track and get started tonight," said Scott Purchatzke, who is a member of the city's Board of Public Works.
The council approved a design engineering contract for the Pleasant Street utility improvement project in June 2009 because of the problems occurring in that area, including frozen water mains.
OMNNI Associates of Appleton did the engineering report. Its report from October 2009 states that fire protection is questionable to nonexistent in this area of the city because of the limited volume the water lines can produce.
"In several areas it was installed in the same trench as the sanitary sewer in order to get depth to try and keep it from freezing in the winter. In spite of the efforts of the original system designers to get the existing water mains deep enough to avoid freezing, the city of Waupaca Water Department had to thaw out the existing pipes in the proposed project area a half dozen times during the winter of 2008-2009 alone. This activity puts additional pressure on the existing pipe and causes them to age prematurely," OMNNI's report states.
Several times during the past couple of winters, the city has had to temporarily provide aboveground water service to a house, via a garden hose through a window or door from an adjacent house and has caused damage at another house in an attempt to thaw out the undersized, shallow water main.
In December 2009, the city submitted an application for the project to the DNR Safe Drinking Water Loan Fund. City staff proposed the construction phase of the project in the city's draft 2010 budget, but it was removed from funding in the final 2010 city budget.
The project includes the replacement of undersized, shallow water main and leaking, root-affected sanitary sewer mains in the area of Franklin, Washington, Pleasant, North and Simcox streets.
The existing water mains that will be replaced were installed between 1910 and 1932 - representing some of the original water main installed in the city.
The city is under DNR requirements to have a plan in place by 2018 to replace all 4-inch diameter and smaller water mains in the city. This project will replace 1,800 feet of the 21,892 feet of undersized water mains the city presently has.
The Common Council's approval of the project means the city will soon seek bids with the opening of those bids planned for the end of March.
"We could still decide next month if we want to include it (the $75,000 of the project) in a borrow if we do borrow," Smith said.
The proposed $800,000 in borrowing would be for 12 projects.
City Administrator Henry Veleker told the council that the financing could be structured so that the city just paid interest this year, with the first principal payment then occurring in 2012.
Alderman Paul Lehman said, "My concern is the same concern I have expressed before. Look at the budget situation with the state. I have no inside knowledge, but I think shared revenue will be cut. I think when you see revenue cut, it is not the time to increase expenses. At the minimum, I'd like to delay this at least a month until we know what the shared revenue situation is going to be."
Other members of the council agreed.
"I think it's a pretty fluid situation in Madison," Purchatzke said. "I think we better hold our guns until Governor Walker knows what is in store for cities."
